Need new car

georgelfft

Hi everyone. I'm new to this forum, but here goes. I have 6 months left on my IVA which is in year 6 now. I need a car which I have found and I can have the finance at an incredible 7.5%. I think the finance company have missed my IVA. If I don't tell my IVA company about it, will they find out? What they do if they did? The car dealer says if I sign now then the finance company would have to honour the deal if they realise their mistake. I'm more concerned what my IVA company will do if they find out. Anyone have any thoughts please.

Flyright

Does your IVA agreement preclude you from obtaining additional credit?

Max_Maxwell

The terms of your IVA will almost certainly forbid you taking on additional credit when the IVA is still active. I advise that you tread carefully with this as jeopardising your IVA with only 6 months to go would be devastating.

At least run it past your IP in principle.

foxy-stoat

georgelfft wrote: »

Hi everyone. I'm new to this forum, but here goes. I have 6 months left on my IVA which is in year 6 now. I need a car which I have found and I can have the finance at an incredible 7.5%. I think the finance company have missed my IVA. If I don't tell my IVA company about it, will they find out? What they do if they did? The car dealer says if I sign now then the finance company would have to honour the deal if they realise their mistake. I'm more concerned what my IVA company will do if they find out. Anyone have any thoughts please.

My thoughts would be to wait for 6 months or buy a car that doesnt require you to take out credit.

After you have finished your IVA I would save up and buy a better car rather than rushing out and taking credit for stuff you cannot afford.

Jonesy28

My IVA have ok'd me to get a car on finance as I require it for work as without me working I cannot make my contribution. Only issue I have it must go through them to ok the APR where as we know, it's going to be very high, a bit of a catch 22.

adyj73

Which loan company? I need a new car and my IVA finished early last year (F+F) but it won't be until December before it all drops off my credit file. I can afford to pay 500 a month for a car so would find a loan rate of 7.5% acceptable.

Or would I be better to hang off until December? Does everything literally disappear on the final month of six years and your credit rating shoot up to near perfect? I have a mortgage and vanquis card fully paid up to date so once the old IVA debts drop off I should 'look' like a wonderful borrower

foxy-stoat

adyj73 wrote: »

Which loan company? I need a new car and my IVA finished early last year (F+F) but it won't be until December before it all drops off my credit file. I can afford to pay 500 a month for a car so would find a loan rate of 7.5% acceptable.

Or would I be better to hang off until December? Does everything literally disappear on the final month of six years and your credit rating shoot up to near perfect? I have a mortgage and vanquis card fully paid up to date so once the old IVA debts drop off I should 'look' like a wonderful borrower

If all the defaults are no sooner than the start of the IVA then they will all drop off. No, you will not look like a wonderful borrower but not as bad as some !

Good lucks

zara2000

My IVA also ok me to get finance for a car because I needed a car for work and my current car was really old so I needed something reliable .
I used a company called money barn the interest was high but my IVA checked to see if the monthly payments were manageable for me which they were .


Maybe instead of telling your IVA that you have already applied for finance ask as if would it be ok with them if you do apply and judge their response .

headstuckinsand

Is the car you have completely unsuitable? I think you seriously need to ask yourself whether you need a new car or whether you just want a new car. I know it can be frustrating, the last 6 months of the IVA are the worst as you just want it to be over so you can get on with you life. You've lasted this long - would waiting 6-9 months really be impossible?

I spent 6.5 years driving around in a battered old Fiesta during my IVA and it never failed me once even though it did struggle to reach 70 on the motorway! After the IVA it felt so good to be able to get a new car without having to borrow anything on credit.

On the point of whether things on your credit file tidy up quickly - provided you've checked all the default dates - then they will drop off on the 6 year anniversary and once you've received your completion certificate the IVA notice will be removed usually within about 1-3 months. For me within a couple of months of the 6 year anniverary my credit file went from poor to excellent (973 out of 999).

Good luck with whatever you choose to do.

Vikipollard

adyj73 wrote: »

Which loan company? I need a new car and my IVA finished early last year (F+F) but it won't be until December before it all drops off my credit file. I can afford to pay 500 a month for a car so would find a loan rate of 7.5% acceptable.

Or would I be better to hang off until December? Does everything literally disappear on the final month of six years and your credit rating shoot up to near perfect? I have a mortgage and vanquis card fully paid up to date so once the old IVA debts drop off I should 'look' like a wonderful borrower

The two emboldened bits in the above worry me....if your IVA finished early last year, and you can afford 500/month payments, why do you not have significant savings and no need for a loan..?

adyj73

Because I have been using my spare cash for other things. There is no law that states as soon as you finish an IVA you suddenly have to start saving all your spare money. I've remortgaged my house to remove my ex wife, paid back the family who put up the money for the F and F, I had to carry out house repairs, I overpaid on my mortgage etc etc (not that any of this is anyones business)

The main point surely has to be I don't currently have any debt (other than my mortgage)

Now 18 months down the line I need a new car. That's life! Most people don't save up for a new car whatever their financial situation!!

Anyway its all moot as a friend of a friend works for Honda leasing and has offered me a brand new Honda CRV for 645 quid up front for tyres and maintenance and then 215 a month with 10k mileage so I'm doing that instead