Get flexible solutions tailored for you – find out about the advantages of car finance with an IVA today!
Car finance with an Individual Voluntary Arrangement – or simply IVA – is a type of loan aimed at people who currently manage their debt through such a plan. This option opens up car ownership to people who would otherwise have difficulties acquiring regular funding due to their financial situation.
An IVA is an agreement reached with all your creditors to pay back your debts over time. Although it may make obtaining a loan more complicated, there’s car finance available that’s been especially developed for those in an IVA. These deals are designed in a way to make payments as affordable as possible to keep you in good standing with your other, current commitments.
With IVA car finance, you do not have to find the full cost of the car upfront. Instead, the loan amount is based on what you need to get a good car, and the terms are based on what you can afford and your situation.
It’s essential to weigh both the benefits and drawbacks when considering how an IVA affects car finance:
Securing car finance while in an IVA means you gain access to specialist lenders who understand your financial circumstances. These lenders tailor their offers to individuals who may be navigating debt repayment, which helps you get car finance without the typical hurdles you’d face with mainstream banks. This can lead to a realistic and affordable car finance deal that suits your personal budget.
Making consistent, on-time repayments on a hire purchase car finance agreement (or other car finance options) can help you gradually improve your credit report. By demonstrating responsible repayment habits, you show that you can handle your finances well despite the IVA. Over time, this may open doors to even more favourable lending terms.
When you work with a car finance company to arrange a deal while in an IVA, your repayments are typically fixed. This fixed structure helps you plan ahead, and because your insolvency practitioner is already involved in structuring your finances, you can ensure you’re only committing to an amount you can reasonably afford each month.
While specialist lenders can help you get approval, you might face higher interest rates due to your IVA status. This is because lenders see individuals in an IVA as a higher risk. Although you’ll still be able to drive away in a reliable vehicle, the total cost may be higher than with standard lending options.
Not every lender is willing to offer IVA car finance, so you may have fewer choices when it comes to picking a provider. Although HP car finance and PCP car finance providers can accommodate those in an IVA, your overall selection could be less extensive compared to borrowers with a clear credit history. This might limit the vehicle models or the terms that are available to you.
Finally, while you can secure a car finance deal during an IVA, there is an additional layer of approval required. Your insolvency practitioner typically needs to agree that the new monthly payment will not jeopardise your ability to meet your existing IVA obligations. Although this step helps protect you from overborrowing, it may lengthen the application process compared to a standard finance agreement.
Wondering how different repayment terms might work with your IVA arrangement? Try our free car finance calculator below. This is a handy tool for comparing different car finance options and ensuring you only commit to a realistic plan that fits into your IVA budget.
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From hire purchase car finance to more flexible arrangements, there are choices that could align better with your future plans and monthly budget. Below are some of the popular options worth looking into:
HP car finance (Hire Purchase) is an ideal route for those aiming to spread the cost of a vehicle and ultimately own it outright. You put down an initial deposit – though some agreements may allow a smaller or zero deposit – and then make fixed monthly payments until the total cost is covered. At the end of the term, the car is yours.
PCP car finance providers offer a more flexible arrangement. A significant portion of the loan is deferred until the end of the term, known as the optional final payment. When that time comes, you can choose to:
No Deposit Car Finance allows you to skip the upfront payment entirely. You spread the full cost of the vehicle across your monthly repayments, which are typically higher than they would be with a deposit. For many people, this makes it easier to get car finance quickly, especially if they don’t have savings for a large initial payment.
Struggling with bad credit or unsure IVA might pose a barrister? A guarantor car finance agreement could be the solution. In this setup, a third party (often a close family member or friend) commits to covering any missed payments. This assurance can lead to more favourable rates because lenders have added security, helping you secure a car finance deal without sky-high interest.
Yes! We specialise in helping people who are in IVAs get approved for car finance. We work with a range of lenders who understand your situation and we work hard to ensure the approval process is as smooth and painless as possible.
You will need to be aged 18+, with 3+ years’ address history in the UK.
We start off by conducting a soft credit check that doesn’t affect your credit score. This enables us to find an approval in principle, building your confidence without any risks to your credit file.
While a good credit score helps a lot, our lenders consider a bit more than your credit score. Your current financial stability, your income, and just how well you could make your payments on time will be factored in.
At Car Finance Today, we pride ourselves on trying to make it possible for everyone to achieve car financing, even with a few financial hurdles in the way, like an IVA. We want to try and help you get the vehicle that you need with terms to suit your situation.
We understand that financial hardship only serves to make lives even more difficult. We commit to helping you break the cycle with car finance that’s right for you, while regaining your independence and improving your quality of life.
We don’t think that past monetary adversities should stand between you and the ownership of a reliable vehicle. Our network of reputable lenders is ready to provide the best deal possible, one fitting for your needs and budget.
You’ll have an account manager who will guide you through every step. From application to approval, everything will be clear, transparent, and hassle-free.
Got any more questions regarding how does car finance with an IVA work?
You will have to pay a fee per mile if you go over the agreed mileage, but we will make sure that from the very beginning, you will be aware of all the conditions.
Early termination is possible; however, various early termination fees may be applied. It will be explained by your account manager in detail to make sure you are on the same page.
Although a good credit score may be helpful in this case, we deal with lenders that will understand your situation and give you the possibility to secure finances, even having bad credit.
Provided it is in the agreed condition and mileage stated on your rental agreement, there are no further charges.
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