IVA Car Finance – is it possible?

For many people who have an IVA, they believe it is impossible to get IVA car finance. Whilst it can be a little bit trickier than usual car finance, it doesn’t have to be impossible. Please remember, no car finance company can guarantee car finance, and we can’t promise you finance without getting to know you a bit better. Please use the information on this page as a guide, but feel free to get in touch and find out more about your eligibility for car finance with an IVA. There are a few things you should know about IVA car finance before making an application, find out more below. 

An IVA has to be agreed upon by all parties, i.e. yourself and your creditors. Your creditors get to decide whether or not they agree to an IVA. You can apply for an IVA if you can afford to pay something towards your debt but couldn’t afford to pay off the full amount. This amount is then broken down into manageable payments which are usually monthly. You should also note that you will need to prove you have a regular long-term income that will cover the duration of your IVA. This gives creditors the confidence that you will pay back your debts and can influence their decision at the approval stage.

To find out more information about how to enter into an IVA, please visit Citizens Advice.

Can I get a car on finance with an IVA?

The good news is that Refused Car Finance can offer IVA car finance! However, it depends on the lending panel we currently have at that moment in time. As mentioned, it may be a little bit harder to get approved, but with our expert knowledge and wide lending panel, we are committed to helping you get IVA car finance. When you enter into an IVA, you are promising to repay your old debts, and it can look favourable in potential lenders’ eyes by showing them you want to resolve your past financial mistakes.

With an IVA and its financial problems usually comes a bad credit score, and it just so happens that we are bad credit car finance specialists! We help people every day get approved for the car finance deal that’s right for them. Using our wide range of lenders and our specialist car finance team, we match you up with the most suitable lender for your situation. We have finance lenders who accept people who have IVA’s and as long as you meet their criteria, we may have some options for you.

Can I keep my car on finance on an IVA?

If you already have a car on finance and enter into an IVA, then you may be wondering what might happen to your goods s. When you enter into an IVA, you will usually be asked if you have a car on finance and if you really need the car. If you do need your car to get to and from work and then therefore, earn an income, you will usually be able to keep your car. If you have a car that is a Hire Purchase agreement, then you will also usually be allowed to keep the car and continue to make your payments in full each month. If your IVA still remains after your car finance deal is completed, the IVA company may also ask you to increase the monthly contributions of your IVA to help clear your debt faster. 

What is the best car finance for IVA? 

If you’re struggling to get approved for finance with an IVA, it is best to wait until your IVA has ended. IVAs can last around 5-6 years, but your chance of approval for a car on finance can increase greatly when you’re out of an IVA. If you want to get IVA car finance in the meantime, the best car finance for IVA can be determined by the lender you’re matched up with. Hire Purchase car finance can be a good option for those in an IVA because it is a form of secured loan, this means the lender owns the car during the agreement and has the right to take the car from you. It adds an extra layer of security for the lender because if you fail to repay, they have the right to take the car away from you.