IVA Car Finance
We’ve helped customers from all walks of life secure IVA car finance, and you could be next…
Fed up with your application being rejected? If you have entered into an IVA, the likelihood of traditional lenders dismissing your case is high. At We Finance Any Car, we are working hard to change this. As experts in bad credit car finance, we have the know-how to help you combat the challenges of the system. To let you in on a secret, showing that you can manage your finances responsibly with an IVA can actually help your case.
You may be feeling apprehensive or overwhelmed, especially if your financial situation has prevented you from purchasing a new car previously. Armed with an extensive panel of specialist lenders and a team of industry professionals, we are dedicated to delivering a simple and safe application process for all. Plus, with our soft credit search, there’s no need to worry about any damage to your credit score.
Whatever your individual circumstances, we have a car finance solution for you.
How it works
With us, it really is as easy as 1,2,3. Whether you already have a car in mind or you’re at the very beginning of your journey, our step-by-step process is designed to remove all the usual hassle of IVA car finance. If you stumble across any obstacles along the way, your Account Manager will be there to support you.
Struggling to find a car that ticks all your boxes? Look no further! With our car search portal, you can browse over 250,000 makes and models – all from the comfort of your own home.
Applying for car finance with an IVA on your credit report? What you can expect from We Finance Any Car:
- Specialist lenders
- Dedicated Account Manager
- FCA authorised dealers
- Support with written request to IVA practitioner
- Soft search credit check
- Straightforward application process
- All financial circumstances considered
- Achievable payment plans
Convenient car finance for a brighter future – your new car is within your reach.
Confused about IVA car finance? We’ll talk you through it…
We are firm believers that absolutely anyone should be able to purchase a new car, regardless of personal circumstances. Yes, an IVA can be a barrier to securing car finance, but there are still options available to you. Our industry experts are committed to finding an agreement that works for you and your specific needs.
We understand that bad credit car loans can be intimidating. You may be feeling hesitant to share your financial difficulties or uncertain about the outcome of the assessment. Perhaps you’ve previously been met with hostility… At We Finance Any Car, we are on your side.
When it comes to IVA car finance, the endless paperwork and procedures involved can make the process confusing, to say the least. Don’t let the terms and conditions put you off! We want you to feel confident in your application.
To kickstart your journey, we’ve put together a quick guide to applying for car finance with an IVA, along with some top tips and tricks from the experts.
Still have some concerns? No question is a silly question in our books. Give our friendly team a call today.
If you are currently in an IVA
When applying for car finance with an IVA on your file, you’ll need to get permission from your Insolvency Practitioner. There are two reasons for this:
- Loan amount: If the amount that you’re applying for is over £500, it will need to be approved. Why? Because larger loans may impact your ability to fulfil your IVA payments.
- Non-essential utility: If you have entered into an IVA, essential utilities such as housing expenses are prioritised. Generally speaking, a car will be deemed a non-essential utility. This makes securing finance more difficult.
The purpose of an IVA is to protect your current finances while ensuring future financial stability. Taking on any additional responsibilities can be a risk, so it’s down to your Insolvency Practitioner to determine whether you are in a position to apply for finance.
This means that there are a few barriers to securing car finance on an IVA.
Is it easy to get permission?
This will depend on a few factors, including:
-Your financial stability
-The specific terms and conditions of your IVA agreement
-To what extent you need a new car
Having a reliable car can make a big difference to the everyday. But if you’re in an IVA, you’ll need to prove that you can afford the finance agreement. This starts with having a good understanding of your finances, including your current income and expenses. From there, you’ll be able to set a budget.
Convincing your Insolvency Practitioner that you need a car will also help your case. For example, you may live in an isolated area with limited public transport. Or, you might have a long commute to work everyday. Whatever your situation, a new car shouldn’t just be a nice-to-have but a necessity.
Ultimately, the final decision will come down to your Insolvency Practitioner.
What happens next?
Alongside your application, you’ll need to provide a letter of approval from your Insolvency Practitioner. This will confirm that your financial situation has been thoroughly assessed and that car finance is a viable option for you.
At We Finance Any Car, we can’t guarantee car finance. A letter is essential and will support your application, but having an IVA on your file may still impact your chances.
Applying for car finance after an IVA
You are more likely to be approved for car finance if you have completed your IVA and have no outstanding debts.
However, you may still face some hurdles. Here are a few things to consider:
- Credit report: If you have previously had an IVA, it will remain on your credit report for up to six years from the date it started. This can have an impact on your financial history.
- Eligibility check: When reviewing your application, lenders will be able to see any information about your IVA – even with a soft credit check.
- Interest rates: If you do pass the eligibility check, you may be offered less favourable terms due to the level of risk involved. This could include higher interest rates.
Unfortunately, securing car finance with no credit check is not a viable option and will put you and the lender at risk. Assessing your eligibility is an essential part of the process.
With that in mind, it’s important to be aware of the potential limitations associated with IVAs and car finance. Not only will this prepare you for the outcome of your application but it will help you to fully understand your options.
What steps can you take to address these challenges?
Set a budget:
All applicants should aim to create a realistic budget, but this is especially beneficial for those with bad credit. By accounting for potentially higher interest rates, you will be able to better manage your outgoings while demonstrating financial responsibility.
Repair your credit score:
It’s also a good idea to focus on repairing and rebuilding your credit score. This can seem daunting, but there are simple steps you can take, such as setting a reminder for bills or checking for any errors on your report.
Opt for a specialist lender:
Mainstream lenders will be less inclined to offer you car finance if you have an IVA on your report. But it’s not all bad news. By opting for a specialist lender who has experience with bad credit applicants, you are more likely to get accepted.
When you choose We Finance Any Car, you will have access to a specialist lending panel and a team of experts. This means that you’re in the perfect place to apply for car finance.
Your questions answered
The financial and emotional burden of debt can have a considerable impact on your everyday life – an IVA is a way to manage the repayment process and avoid bankruptcy.
Short for Individual Voluntary Agreement, an IVA is a legal agreement that you can make with organisations you owe money to (creditors) to pay off your debts over a fixed period of time. You will agree on an achievable repayment plan, based on your income, helping you work towards clearing your debts. This is an option available to residents of England, Wales, and Northern Ireland.
Even if you have successfully completed your IVA, you will be removed from the Individual Insolvency Register after three months. it will stay on your credit report for up to six years and will negatively affect your credit rating. Unfortunately, this means that lenders will be able to see if you have entered into an IVA, making the process of securing car finance more of a struggle.
But don’t worry. At We Finance Any Car, we are dedicated to helping our customers find the best deal possible and get out on the road.
The simple answer is yes! Although you may have a few extra hurdles to overcome, you can still get car finance with an IVA on your credit report.
Often perceived as a mark of financial difficulty, many mainstream lenders will reject your application without a second glance. Luckily, you’re in the right place. We work with a panel of specialist lenders who have a wealth of experience in IVA car finance, ensuring each applicant receives a fair review.
Am I more likely to be successful if I have repaid my debts?
Completing your IVA agreement is an indication to lenders that you are able to manage your debts responsibly and have taken the steps to improve your financial situation. This can work in your favour when applying for car finance.
It’s important to remember that, when reviewing your application, the lender will always look into both your credit report and credit score. Although your records will show that you are no longer in debt, your score may still be damaged as a result of the IVA and this can affect the interest rates and terms of the offer.
What if I am currently in an IVA?
While the chances of approval are much greater if you have completed your agreement, with our support, you can still bag the car of your dreams while still in an ongoing IVA. In this instance, you will need to discuss your application with your insolvency practitioner and borrowing any amount over £500 will require written permission. If you have been unable to meet your existing debt repayment commitments, it can be even harder to secure car finance.
When you have an IVA, there are some strict rules around applying for finance. Our expert team can help you navigate through the do’s and don’ts.
Whatever your financial circumstances, we are here to support you every step of the way.
Top tip – Before submitting your application, always complete a thorough review of your finances so you are confident that you can meet the monthly payment deadlines.
If you are struggling with a poor credit history or have been unable to get a successful result on your own, joint or guarantor car finance are alternative options available to you. In both cases, the co-signer will need to be a family member or close friend with a healthy credit record. Joint finance applicants tend to be family members living under the same roof, largely due to the legal responsibility of the agreement. It also makes it easier to manage the repayment process if you share expenses.
When applying for joint car finance, both applicants’ financial histories will be taken into account. Although you may encounter some difficulties due to your IVA, if your co-signer has a good credit score and a solid income, you are more likely to be accepted.
When applying for guarantor car finance, it’s important that the other person understands the financial responsibilities that they are taking on. If you fail to meet the monthly deadlines, it will fall to your guarantor to make the repayments.
To ensure you are a viable candidate for car finance, lenders will check your employment status and current earnings. If you are self-employed with an IVA, not having a reliable monthly income can make the process more difficult, especially when combined with poor credit scores. As a result, you may be viewed as a higher risk.
Don’t despair! We have the experience and industry knowledge to tackle even the trickiest of cases.
What documents will I need to provide?
We recognise that applying for car finance can be a confusing process, and that’s without the added complication of being self-employed. At We Finance Any Car, we are committed to creating a smooth and relaxed experience for our customers, regardless of any extra requirements.
Providing evidence of a stable income through bank statements, tax returns, and invoices will improve your chances. If you can’t get your hands on paper documents, you also have the option of an open banking assessment. With your consent, this will give lenders a more complete view of your financial situation and help to determine your creditworthiness.
In essence, an IVA is a formal debt solution and acts as an indication that you’ve experienced financial issues in the past.
Once you have entered into an IVA, it will be recorded on your credit report and lower your credit score as a result. The extent of the damage will depend on your individual situation and how well you manage your IVA agreement. If you successfully meet the payment deadlines, this can have a positive impact on your score.
The negative association with finance assessments and the potential impact on your credit score can often hold people back. At We Finance Any Car, we only work with lenders who use a soft search credit check (in the first instance). This means that they can review your credit history multiple times without causing any damage.
Nothing puts a smile on your face like that new car feeling, especially if it’s one you’ve always wanted. Trust us, we get it. Sleek exteriors and swish leather seats bring the wow factor, but are they within your budget? We want to ensure that each of our customers receives the best advice possible so they can comfortably manage their repayments.
If you have a history of debt or are still being affected by financial difficulties, it’s vital to aim for something you can afford. If you have your heart set on a car that is way above your price range, it may have an impact on your ability to secure finance. With our expert guidance, you will be able to find a vehicle that is affordable, reliable, and suits your specific preferences.
Once you have been approved and have a clear idea of your budget, we have a wide selection of models and makes from trusted dealers to explore. Whether you’re looking for a spacious family car or something on the sportier side, you’re sure to find your fit with We Finance Any Car.
Top tip – We would recommend making a list of your priorities, with considerations such as cost of maintenance, vehicle type, and fuel efficiency. Browse around. Your perfect match is out there.
The terms of your IVA car finance agreement will vary depending on the lender. Generally speaking, missed payments can lead to a late payment fee and may also impact your credit score. In more extreme cases, the vehicle may be repossessed.
We recognise that experiencing financial difficulties during the repayment period can be incredibly stressful. From the daily commute to school drop-offs and the weekly food shop, we are hugely reliant on our car and the possibility of losing such a valuable item can be a cause for concern.
If you’re having trouble paying for your car finance, don’t panic. Reach out to your lender as soon as possible and they can usually offer you some solutions, whether that’s extending the repayment schedule or adjusting the deadline.
It is much easier to get car finance once your IVA has been removed from your credit file, after the six-year mark. However, we recognise that this might not be realistic – especially if you are in urgent need of a car.
If you completed the IVA recently, it may be more difficult to get approval than if you have waited a few years. This is because lenders tend to look at your most recent financial history and the impact of the IVA will still be fresh.
But don’t let this prevent you from applying. With our support, you may be eligible for a specialist finance agreement.
Due to the negative impact on your credit score, you may be limited in your choice of car finance.
Your best bet is to look into Hire Purchase car finance for bad credit. In this type of agreement, you will be required to pay a set of monthly instalments to cover the cost of the car.
Why is an HP agreement better suited to an IVA applicant?
- The fixed payment plan makes budgeting more manageable.
- It gives you the opportunity to work towards car ownership while gradually rebuilding your financial stability.
- Lenders may be more lenient during the approval process.
Check whether you’re eligible for HP car finance with an IVA today.
Because Personal Contract Purchase car finance is a more complex arrangement that requires a solid credit profile, it is highly unlikely that you will be accepted.
Often, the best approach is to get approval for a HP agreement first. Once you have a track record of making regular car payments over time, and have improved your credit profile, then you may be able to consider applying for PCP car finance.
Try our free finance calculator today!
In need of IVA car finance? We’ve got you covered!
For many, financial support can be the difference between securing a new car and struggling through the day. At We Finance Any Car, we believe that everyone should experience the excitement of getting behind the wheel, whether they have a poor credit rating or not.
Our inclusive approach ensures that each application has a fair chance of success. Whatever your current situation, we strive to find you the best deal possible. With transparency and unwavering support from the get-go, you can have peace of mind knowing that your application is in safe hands.
Ready to kickstart your journey with We Finance Any Car? Apply now.
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