IVA and car cost

Lincsdebt

I wonder if anyone can offer some advice regarding my car problem?

My car went to the garage with a rattle last week, turns out it is a big problem requiring an engine rebuild. The car is 15 years old and it isn't worth repairing, as the cost of the work is going to be approaching £1k.

I am in an IVA, the equity clause was kicked in last year and I have five more payments to pay.

I live in a village with no public transport, so I need a car to get to work etc. Taxis would cost me £25 to £30 a day, so this is not a choice I can consider.

Naturally I have not got any savings, the debt management company screws every spare penny out of me monthly. When my car had a smaller problem before, I approached them about a payment holiday and they were not helpful, their attitude being I should have an amount set aside for car repairs, but this is nothing like the cost of this repair.

Reading this back, I don't seem to have any options. I assume it's impossible to get a car loan even for a small amount to get me mobile, but would welcome anyone's advice especially if you have been in this situation.

Thank you.

National_Debtline

Hi Lincsdebt


How large are your IVA payments and how long would you need to defer them for in order to fund a replacement vehicle? I would enquire about this again, but this time you may need to be prepared to cancel your IVA payments and thus force the issue, at the same time writing to the insolvency practitioner (IP) stating clearly your reasons for doing so. I would like to think they could propose a slight modification of the IVA to your creditors so that it slightly overruns its scheduled term.


Be prepared to formally complain if the IP is still not budging at this point. Very few people are going to get through a five-year period without some sort of financial hiccup, and yet all too often we see IVAs that are not set up to reflect this.


Dennis
@natdebtline

Lincsdebt

Thank you for your advice Dennis. My payments are £1,100 a month, so even two months would be enough to get a cheap car. I am now waiting for the final confirmation from the garage that the car is not economically repairable and I'll see what to do. Mentally I am holding on to the thought of finishing the IVA in August and I don't think I can face extending it and paying more interest to the debt management who have now had over £100k from me. We are currently managing with one car, but if my husband gets work it will probably be away and so I will need to make a decision, in the meantime scraping together what I can towards an old banger!

headstuckinsand

If I were you I'd see about getting a banger to runaround in for the next 6 months and avoid making any extensions with the IVA company - the feeling when you've made the last payment is great.

Presume you'll get scrap value for your car, plus if you can beg and borrow you should be able to get something for £500-£1000- it doesn't need to be amazing - just needs to get you to the end of your IVA. I had a similar problem 2 years in and bought a 10 year old Fiesta for just short of a grand and it lasted me right through with no problems.

With regards to getting a loan - I would avoid it - there are sub-prime lenders out there but you'll pay massive APR. I tried to lease a car 6 months after my IVA finished but was still declined.

Just think of this as a speed bump - the light is at the end of the tunnel and you're so close. With the payments you're making, when you've finished your IVA you'll be able to save up for something much better in no time.

Lincsdebt

Thanks for your comments. I agree with your idea, just in the short term trying to get cash together for any car. Actually can't face going to the debt management co. and asking them.


I only need something that can do the journey to station and back each day till the end of the summer.


Congratulations on ending your IVA, I can't wait for that feeling when I've finally paid it off.