Iva and car finance

mannequinxox

Hi all,


I recently started my IVA in may of this year. I have a car on pcp finance that I started on November 2020. I was under the impression, thanks to my iva company, that I would be able to take another car out when this has finished. After doing some research it seems this is very unlikely!

however, my balloon payment isn’t due until 2024 and it’s £4016. My partner has said he is happy to make the final payment on my behalf and have my pay it back either in lieu of making the finance payments or after the IVA. Does anyone of have any experience of this? Are my iva people (FSS) likely to let me do this? I will need a car and it seems I am unlikely to get a new one within my £250 a month IP approved budget.

if they do let me will they let me use the money I currently use to pay my finance with to pay it back, or will it just be absorbed into the Iva payment? (Not bothered either way). 

Finally, is it too early to speak to them about it as it’s just under 4 years away? 

Thanks for reading my waffle 

CKhalvashi

Is there any reason why a sub-£1k runaround wouldn't do such as a need for wheelchair accessibility or licensing requirements?

This would enable a larger amount to go towards your debts over the life of the IVA (around £9k), reducing the shortfall and therefore fairer on your creditors.

sourcrates

I assume you are aware that when the PCP contract ends, if you are still bound by your IVA arrangement, your IP will most likely require you to sell the car, dependant on its value, and the £1000 per month payment will have to be paid into your IVA, for the benefit of your creditors, so your payments will increase.

You are an insolvent, you do not have the luxury of being able to pick and choose like a normal person, until your IVA ends, your IP more or less rules your life were money is concerned.

If you still need a car, then you will probably be allowed around £1000 to finance a cheaper model, but that is it.

dizzyblonde82

I've been on an IVA for 4 years and entered it with a car on PCP which I was able to keep. At the end of the contract I handed back the car and was allowed to take out a new finance deal for a 3 yr old Ford Focus Zetec S, the interest rate wasn't great but at the end I will own the car. My monthly repayments stayed about the same - at the time my job required a lot of travel which was why I couldn't risk a run around car.

MrFrugalFever

I have seen an IVA firm agree to a finance arrangement (normally HP with no more than £250pm) on a used car and the finance company accept the IVA case, albeit at a higher interest rate.
it’s indeed possible.