IVA Car Finance: Your Guide

An IVA (Individual Voluntary Agreement) is a legal contract that commits you to pay back your creditors at a price you can manage. It’s a way for you to pay off your debts. The vehicle that you’re looking to finance will be used as part of payment towards your IVA. Are you interested in IVA car finance? Read below to find out!

You may find it more difficult to get a car on finance in an IVA, but it’s not impossible! Our guide outlines all the information you need to know about getting car finance in an IVA.

What Is An Iva?

An IVA is a way of repaying your debts to creditors without having to go bankrupt. You can pay back your debts as you go along and get a clean slate in the future. Because of the nature of IVAs, your repayments are overseen by an insolvency practitioner (IP). 

What Is Iva Car Finance?

IVAs are often used to help people who have been struggling with their finances for some time. This means that if you’re looking for car finance while having an IVA, some lenders will offer car financing to you. If you have bad credit, this will mean that finding one of these companies will be difficult. However, there are some lenders that will offer you car finance options. 

Why Would You Need To Get Car Finance In An Iva?

An IVA is a form of insolvency. This is the circumstance where you cannot pay your debts.  You can make payment arrangements towards your IVA with your creditors over a period of time. It can only be set up if you have enough income to pay off part of what you owe each month. This means that if you want to get a new car on finance, the repayments will come under the IVA. 

It’s also worth knowing that your credit rating isn’t impacted by your IVA which may prevent you from financing a car. So it’s still possible for lenders to approve an application for financing after this process has begun. Plus, some lenders may see you as a dependable borrower because you are committed to paying off your debts.

Can I Get Car Finance On Bad Credit?

You might have heard that credit repair is impossible or that bad credit will kill your chances of getting car finance. This isn’t true! It is possible and you can get car finance with bad credit.

All it takes is a bit of research and planning. Before you start applying for IVA car finance, find out what your options are by getting in touch with our dedicated team members. The key thing to note when buying an affordable car is not to be put off by any marks on your report. Remember, they’re not permanent! Your first step should be finding out how much money you can borrow, so look at what your options are here.

What Are My Options If I Need To Get Car Finance In An Iva?

There are a few options you can consider for your IVA car finance.

  • You could get a lease or loan, depending on your circumstances
  • You could get a new or used car.
  • You may be able to get a new or used car with a warranty.
  • You could get HP financing 
  • You could get PCP leasing 

Luckily, there are specialist lenders who can offer you car finance if you are in an IVA.

The Application Process For Iva Car Finance

The application process for IVA car finance is simple!

Car finance is an easy and convenient way of purchasing a car, but it can be daunting when you are applying for the first time. The more questions you have, the better prepared you’ll be. Make sure that you ask your broker any questions before signing up for anything. That way they can explain what is required of you and how your application will work. Also, get in touch with your insolvency practitioner to see if there are any restrictions against you getting car finance. Certain circumstances, such as making a regular commute to work, may mean your IP approves your car finance request.

Here Are Some Of The Common Questions We Get Asked On A Regular Basis:

  • What is the process for applying for car finance in an IVA?
  • How long does it take to get approved? 
  • Are there any fees involved in getting approved by my new lender?

The application process involves filling out forms and sending over relevant documents. Your credit score will determine exactly how much interest rate lenders will offer you. This is because lenders use this to see how financially reliable you are. When you apply for car finance, brokers may require you to provide information in a timely manner. So make sure you have the relevant documents to hand! 

If you get the go-ahead from your insolvency practitioner, you may be able to get car finance. You will need to get this permission in writing from them. You will need to notify them of your plans to finance a car before making any decisions. Moreover, there won’t be any additional fees. Your car finance broker will outline the fees you will be expected to pay when you apply for car financing. 

How Long Will It Take To Get Approved For Iva Car Finance?

IVA car finance applications are usually processed within a similar time to the lender receiving most applications. However, some lenders may take longer to process applications. If you have a poor credit history, you may need to put down a deposit and provide other documents. These could be pay slips or bank statements to demonstrate that you can afford payments on the loan.

What Documents Do I Need For Applying For Iva Car Finance?

When applying for IVA car finance, it is important that you have all the necessary documentation with you. The lender will want to see:

  • Proof of your income – this could include your recent payslip or a letter from your employer stating how much money you earn per month. If you are self-employed and pay tax through HMRC, then a copy of your latest tax return may be required.
  • A full driving licence – if yours hasn’t expired yet, it’s best to bring along a copy anyway (and keep the original in case there are any problems).
  • Your current address – You will need to prove your UK residency to get any car on finance. 

To Conclude

In summary, getting IVA car finance is a great way to buy a new car and get on the road. It’s worth noting that it is possible to get approved. If you are looking to buy a car through IVA car finance, apply for financing now!  Alternatively – if your income is low and you have bad credit history then there may be other options available. At Bright Motor Finance, we are committed to helping you get the car of your dreams. We understand that financial circumstances can make getting a new car difficult. But we want everyone to have a chance.

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