Mum on IVA, needs a replacement car but can't get finance

charmedangel119 · 4 July 2012 at 8:57PM

Just wondering if anyone can give me some advice. My mum is halfway through paying her IVA off (think she has 2 years left), and is desperately in need of a new car. Her current car keeps breaking down and needs approx a thousand pounds worth of work doing to fix it; she needs the car to get to work (as she works 25 miles away from home) and struggles with arthritic joints and a bad back so can't be without a car. Her IVA providers have agreed that she can try to get finance to get another car, but due to her credit rating no-one will touch her. She is trying to save up the money so that she can trade the car in for a better one but the time it is taking for her to save means that the car is depreciating in value. I wish I could loan her some money to help but I don't have anything spare in savings as I am 2years into a 35 year mortgage.

Does anyone know if there are any companies that are willing to offer used car finance to someone on an IVA? Or is it a possibility for me to try to get a car on finance for her (and her give me the money to make the repayments) as my credit rating is ok (although I don't live with her, she is in Manchester I am in Newcastle upon Tyne - not sure if I can legally do that or not)? I'm just desperately trying to figure something out to help her as the stress and worry of this is making her ill and very depressed. Any advice anyone can give me would be a great help.

Thanks

Joanne

TomBoyNI · 4 July 2012 at 9:53PM

I don't see why you couldn't get the loan. If approved it is effectively your money to do with want you want. Just it comes back to you to pay it off.

Anondebtadvisor · 5 July 2012 at 10:06AM

I think the issue is that many finance companies wont lend due tho the credit history

You could try either Moneybarn or Carloans4u - they are usually good for car loans with people who have a less than a perfect credit record.

Foxy-Stoat_3 · 5 July 2012 at 10:47AM

If you intend on getting a loan for your mum and her to pay you the monthly installments then I would run it past her IP first in writing and wait for their reply.

If you take out a loan and the repayments cannot be added to her monthly expenditure at the annual review then she wont be able to keep up the payments and you will end up paying it.

What is the current car and the issue with it? Would it not be cheaper to get it repaired and keep using it than to sell it for peanuts as it has issues that will cost the new owner £1000 to fix and spend another X amount of thousand pounds for a new car?

charmedangel119 · 8 July 2012 at 9:50PM

Thanks for your help everyone; she has managed to get it going again for now. The problem is it won't always start, particularly if she is parked facing uphill - the engine starts (so it's not the battery) and immediately cuts out again. It also needs the clutch and the flywheel replacing very soon as it the mileage is very high (& has started whirring and juddering as well), hence the large bill. I spoke to her about spending the money on fixing the car up instead but she said she has already spent a lot on repairs and doesn't want to be spending more as she'll have spent more than the car is worth.

She has actually managed to get another car sorted this weekend, she went to see a used car and the dealer has offered her more than she thought she would get for her car in part exchange - she had enough saved up plus the car to get this one without needing finance; it's lower mileage than her one and she has done test drive, it is also a petrol instead of a diesel (she has had a couple of diesel cars that have gone wrong over last few years). Am keeping my fingers crossed that this one will be better, she just needs it to last 2-3 years until she has paid off IVA and then she should hopefully be in a position to get a newer one if she needs to.

Am quite relieved she has sorted things out as my worry about offering to get the car on finance for her was having to find the money to make the repayments if she found she couldn't afford to in a few months time. Thanks for your advice and fingers crossed this one will be ok!

Foxy-Stoat_3 · 4 February 2013 at 4:43PM

oncemorewithfeeling13 wrote: »

I have just got a car from this company on finance, they specialise in giving it to ppl with bad credit, i was soooooo happy as i never got accepted with anyone before!!! now i have a new mini and i cannot believe how easy it was! I called rip off car credit company ltd in my dreams

Good luck!
Let me know what car you get

Thanks for the spam!

cajef · 4 February 2013 at 5:04PM

Foxy-Stoat wrote: »

Thanks for the spam!

Already reported as spam, I would take the company name and phone number out of your posts so you are not reposting the spam.;)

Max_Maxwell · 4 February 2013 at 10:54PM

charmedangel119 wrote: »

Her IVA providers have agreed that she can try to get finance to get another car, but due to her credit rating no-one will touch her.

I'm pleased your Mother has resolved her transport issues, but what concerns me is that the IP agreed she could try to obtain finance to purchase another car. Obtaining credit (if you can get it) whilst in an IVA is a significant breach of the agreement.

Please, anyone, jump in and correct me if I'm wrong.

UpToMyNeckInIt · 5 February 2013 at 10:31AM

Max_Maxwell wrote: »

I'm pleased your Mother has resolved her transport issues, but what concerns me is that the IP agreed she could try to obtain finance to purchase another car. Obtaining credit (if you can get it) whilst in an IVA is a significant breach of the agreement.

Please, anyone, jump in and correct me if I'm wrong.

Under normal circumstances, you are right. Normally, your IP would agree to a few Month's payment break to fund a modest car instead.

However, I have heard that some IPs may agree to car finance as well (within reason of course), and the likes of Moneybarn etc. do lend to IVA-ers - extortionate interest rates may apply though. Particularly if you can put forward a convincing arguement for needing a car for business etc.

The key of course is to discuss these options with your IP. If you can demonstrate that your existing vehicle is beyond economic repair, then I would like to think that most reasonable IVA providers would be open to all options.

I'll see if I can dig up some examples of where this has happened and come back to this thread accordingly.

FiatFan_2 · 5 February 2013 at 11:08PM

I've also read threads in the past of iva'ers getting finance to buy a newish car, moneybarn rings a bell.

We approached our ip about a car swap to which they gave us the run around for a week building our hopes up they'd allow it and then pulled the plug preaching the t&c's of the iva agreement, even though we'd previously agreed we wouldn't be breaking them as we weren't gaining new credit, just transferring it from one car to another.

Whilst we respect their decision, we were just frustrated we'd asked, advised we could enquire about it, had everyone on board then having to disappoint everyone.

Smile21 · 18 June 2014 at 8:16AM

I'm currently in the process of applying for an IVA & need a car for work now. I applied for a Personal Contract Purchase & was refused credit. My mum has agreed to put the finance in her name but will the IVA except this. The payments for the finance will be coming out of my account & I have already told the IVA company that this is one of my monthly commitments. Will they ask to see copies of the finance agreement does anyone know? I also wanted to know if I had any other bank accounts can the IVA trace this? If I recurve bonus at work do I tell them about this straight away & will they declare larger payments or just take 50% of the bonus? Hope someone can help ASAP, thanks in advance!

Mum on IVA, needs a replacement car but can't get finance

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free