Obtaining car finance while in an IVA

Woodster2524

I am currently into my 4th year of an IVA and don't currently have a car due to being unable to obtain any sort of finance for one. Any suggestions on how to get some sort of finance whilst in an IVA? 

thevdm

Your best bet would be to buy an older/cheap car. It would be very hard to obtain much in the way of credit while on an IVA (more than £500 would require the IPs approval), they may not be willing to allow extra money for the payments. You should be able to get a couple of years out of a cheap car to get you out of the IVA.

mwarby

Also worth considering the running costs of a car, does your income and expenditure allow for it, if not has IP indicated they can alter the i&e to accommodate it. You may also find that getting insurance on monthly isn't easy, which doesn't help

Woodster2524

We do have monthly car costs budgeted into the outgoings with the IVA so the affordability side is OK and the IVA company have said it may be possible for them to grant permission. The problem we have is the only finance available is ridiculously expensive for example finance companies want £300 a month for a 5-year-old estate over 5 years, crazy money. 

strawb_shortcake

My friend had a car on lease through work whilst on an IVA, they told her she could go onto a HP agreement as long as she wasn't worse off. I suspect the latter part of that is the key part. 

mwarby

Could they grant permission to skip a few IVA payments in order to buy a cheap car outright, or even a payment holiday where you say skip 3 or 4 repayments and extend Iva by 3 or 4 months ? Given you’ve only got 1-2 years to go a £1-2k car could see you to end of IVA

Woodster2524

mwarby said:

Could they grant permission to skip a few IVA payments in order to buy a cheap car outright, or even a payment holiday where you say skip 3 or 4 repayments and extend Iva by 3 or 4 months ? Given you’ve only got 1-2 years to go a £1-2k car could see you to end of IVA

That's a very interesting idea, I may put that to them. Thanks.