?New car

formidablelady

I have just been through my allowances with my IP and I told her my main worry was about my car. Its 7 years old now and will be on its last legs soon. I need a car to do my job. She told me that I should buy a car on HP or equivalent ASAP and has put £175 on my expenses for it. I was amazed. Is this correct? Would I even get HP as my credit rating will be very poor?

judojub

It's certainly worth a try!
Try doing some ringing around tomorrow and see if you can come up with anything. If your IP has allowed you the expense then try and put it to its proper use!!

formidablelady

Hi Judo again . Seems amazing dosen't it. I hope its true. I suppose with HP if you don't pay they just repossess the car maybe that's why you can do it and with my job no car = no job so they would end up with me giving them even less.

Barkley_2

I would have thought that being in an IVA then people wouldnt touch you with a ten foot barge pole. After seeing this, I wouldnt be surprised if there is an influx of applications for a new car My car wont last another 5 years. It's 11 years old as it is 98500 miles.

Is HP different to normal finance? Is it like the Options that ford had? For example either

1. Give the car back with nothing to pay after the term
2. Pay a final settlement figure and keep the car
3. Get a newer model and restart an agreement

formidablelady

Only just started the process and not been accepted yet. I am sure she said once I was in it I would have no chance so she was encouraging me to do it ASAP. She seemed confident I would be accepted as will be paying back about 60p in the £ even allowing for the car.

judojub

I am not altogether sure as not had to go through it myself. Once your in an IVA then the chances of you being able to purchase a new car on HP would be very slim indeed. I do believe there is a company though ( think the name is Dunctons?) that will provide you with a car despite your IVA but the interest/payments would be quite high.
This is something that you would need to discuss with your IP. As is said, No car quite often means no work!

Barkley_2

formidablelady wrote: »

Only just started the process and not been accepted yet.

Ahh, now it becomes clear. Oh well, 100,000 miles here I come lol.

formidablelady

Well Barkley I have not got it yet. I will be stunned if I do. I have a feeling it will fall through ah well I will have to get out my bike to see my patients.....lol at least I will be eco friendly

Foxy-Stoat_3

Cars last a lot longer than 100K miles so you wont need a new one once the mileage gets to that.

You should have an amount in the expenses for vehicle repairs and servicing, make sure you SAVE that money in the monthly budget even if you dont spend it so if and when something pops up, you have the cash to sort it out.

I would say that 15K miles a year you will need 4 tyres, 2/3 basic services 1 mot and allow £750 for some major work or large service. Total £2000 a year as a rough guide, for a normal nothing sporty, to run a 10 year old 100K plus mileage.

I ran a 325i bmw coupe for a couple of years on my iva until I saw the light and changed to a diesel, and obviously didnt lower my budget running costs.

julie011068

Hi,
I manged to obtain a car on credit when I was 18 months into my IVA from car craft the finance company was marsh finance.

FoggyBrain_2

Julie -- I hope you got your IP's permission ! Yes, HP is the way to go and some have used Dunctons mid-IVA, with IP's approval. As rightly said, often it is a case of no car = no job = failed IVA. The creditors regard it as an investment to protect their return.

Go for it asap, while your credit rating is still passable. Being an HP type agreement the money is "secured" on the car (you are really renting it), and therefore not subject to the IVA. Watch out for the balloon payment at the end though (or option to purchase). Some IVA'ers have negotiated a payment break at that end of the lease agreement to cover it.

Best of luck -- and I wish I had thought of it some time ago !!!! Still my "skip" is going strong --- touch wood!