In the UK and dealing with financial challenges due to an Individual Voluntary Agreement (IVA)? Worried about getting car finance? Well, Carplus believes that everyone, even with an IVA, should have a chance to drive. We're here to help you get car finance with IVA, so you can hit the road with confidence.

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Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.

What is an IVA?

An Individual Voluntary Agreement (IVA) is a formal agreement between you and your creditors, usually facilitated by an insolvency practitioner. It is designed to help individuals in financial difficulty manage their debts and work towards a solution. During an IVA, you agree to make affordable monthly payments, and in return, your creditors agree to freeze interest and charges, as well as write off a portion of your debt at the end of the car finance agreement.

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  • Representative APR 21.9%

Can I get car finance if I am in an IVA?

Yes, you can still get car finance while you're in an IVA. However, it's important to understand that securing car finance with an IVA may have some unique aspects and challenges compared to traditional car finance.

If mainstream lenders have turned you down for IVA car finance, don't worry. Specialist lenders, like Carplus, are here to help. We understand your situation, particularly if you have a less-than-perfect credit history. We will work with you to create a finance plan that fits your budget, and the interest rate will depend on your credit score.

How to get car finance while on an IVA

When you're looking to apply for car finance during an IVA, the first step is getting approval from your Insolvency Practitioner (IP). They check your income, expenses, and debts to see if you can afford the car payments. Once they say yes, you can start searching for lenders.

Because the IVA shows up on your credit history, some lenders might be cautious. But don't worry, there are experts like Carplus who specialize in helping people with bad credit rating. Getting a new credit agreement, like car finance, might be a bit harder with poor credit history, but it's not impossible. Having an IVA shows lenders that you're serious about sorting out your credit issues. So, even with an IVA, you can get car finance, and we will help.

Car finance options available during IVA

Hire Purchase car finance with IVA

With Hire Purchase, you'll make fixed monthly payments over an agreed-upon loan term, typically between 1 to 5 years. Once the final payment is made, the car becomes yours. The key advantage of hire purchase agreement is that you can obtain car finance even with a less-than-perfect credit score. This makes it a popular choice for those in IVAs. Specialized lenders like Carplus wil help you get HP car finance with IVAs and will guide you through the process, ensuring that you find a suitable solution tailored to your unique situation.

Personal Contract Purchase car finance with IVA

PCP, or Personal Contract Purchase, offers lower monthly payments because it's like leasing the car. At the end of the agreement, you have two options: you can make a final balloon payment to own the car or return it and get a new one. This flexibility makes PCP a great choice for those in IVAs who may want to upgrade their vehicle after the IVA period ends.

However, it's worth noting that PCP car finance providers consider your credit history when approving your finance application. If you have an IVA on your record, it might be a bit challenging to meet their criteria. Waiting until the IVA has been removed is a smart way to improve your chances of securing car finance through PCP.

What are the requirements for IVA car finance?

  • You must be at least 21 years old.
  • You have spent the last three years in the country (the UK)
  • You possess a valid driver's licence issued by the United Kingdom.
  • You're employed full-time.
  • You have not been declared bankrupt by a court of law.
  • You can demonstrate that you can afford the payments.

Why choose Carplus for IVA car finance

Carplus is your trusted partner for securing IVA car finance. Here's why you should choose us:

  • Soft credit check: At Carplus, we perform soft credit checks. We do this because we know how important your credit situation is, especially when you're in an IVA. These checks let us look at your credit history without causing any harm to your credit score.
  • Experience: With years of experience in helping individuals with IVAs, we understand the unique challenges and requirements you may face.
  • Extensive Lender Network: We work with a wide range of responsible lenders who are willing to offer car finance to those with an IVA.
  • Personalised Service: Our dedicated team will work closely with you to find the most suitable lender and car finance deal that aligns with your specific circumstances.
  • Transparency: We believe in transparency throughout the process. We will provide you with a clear understanding of the car finance agreement, including any interest rates and monthly payments.
  • Expert Advice: Our car finance company is well-versed in the intricacies of obtaining car finance during an IVA. We'll provide you with expert advice to ensure a smooth process.

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Can I get a no deposit car finance while on an IVA?

Securing no deposit car finance during an IVA can be more challenging. Lenders may be cautious due to the IVA's impact on your credit history and your previous financial difficulties. However, specialized lenders experienced with IVAs, like Carplus, may have options available. It's essential to discuss your specific situation with such lenders, as they can provide tailored solutions that suit your needs.

Can I keep my car on finance on an IVA?

If you are in an IVA or are about to enter into an IVA, you will usually be able to keep your car on finance. It depends on your circumstances and you will need to get permission from your insolvency practitioner. If your car is essential to commute to work then it’s very likely you’ll be able to keep the car and keep paying off the car finance agreement.

Does an IVA affect car finance?

Yes, an IVA can have an impact on your ability to secure car finance. Since it's recorded on your credit file, mainstream lenders may view it as a risk factor and be more hesitant to approve your application. However, there are specialist lenders who are more understanding of individuals with IVAs and work to provide car finance solutions. While an IVA might affect your car finance options, it doesn't make it impossible to get approved, especially with the assistance of lenders experienced in handling IVAs.

How long after an IVA can I get car finance?

Once you make your final IVA payment, it will no longer show up on the Individual Insolvency Register. It will stay on your credit report for six years from the date of the default. In the meantime, you can start rebuilding your credit history by making regular payments on any bills you may owe and stay within your credit limit. It may seem too soon, but you always want to make sure that your credit score has recovered from other loans. This way, you could get the best possible interest rate and have a wider selection of lenders to choose from when it comes time to buy a car.

Will I lose my car on finance while in an IVA?

If you already have car finance and are looking to get an IVA, your IP can answer questions based on your unique circumstance. The main factors they are interested in are how you paid for the car and what kind of car it is. Depending on your response, they may suggest keeping your car on finance or trading it in for a cheaper vehicle and using the monetary difference to help finance your other loans.

Will you know if you have an IVA?

Unlike debts and other financial difficulties, you always know if you have an IVA - as the process of setting one up is lengthy and involves several interactions with this company's bankruptcy specialist.
When you have an IVA, it's not a good idea to take out any other loans or use your credit card to buy products that'll only add more debt.