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I'm currently in my 4th year of an IVA. Can you get me car finance with bad credit?

I'm currently in my 4th year of an IVA & have been given permission to obtain car credit by the IP to get replacement vehicle.

But i'm finding it hard understandably to obtain finance as i'm currently paying for another hire purchase agreement. Can i get another agreement in my name?

Ian Dowd


Answer

Hi Ian, this is a tricky situation. We could potentially get you a car loan as we have lenders who help people with bad credit however, i have a feeling that for us to get you approved you may well need to settle your current hire purchase agreement.

Do you need 2 cars in your name? We could settle the HP off on your current car if you part exchanged it but i'm not sure whether your creditors would accept this. However, you may want to confirm as this may well be possible.

We could certainly try and get you approved for a 2nd car as long as you can prove your income. Once approved we provide a no obligation quote and you can choose a car from any dealer. Please apply when you're ready. Kind Regards, Rachel

Answer correct as of September 2016

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More related questions

I am in an IVA and I'm my 3rd year. I have recently been promoted but this means driving further 5 days a week, therefore putting my cost of fuel up ALOT! A few days ago i applied for finance for a lower insurance group car which is also fuel efficient. What are the chances of being accepted when my credit rating is poor (707).

Answer

Hi Paula, we do have a handful of lenders that help people in IVA's but you may well need permission from your IVA practitioner. Also, does your current car have any finance outstanding? If so, do you know the settlement figure and approximate value of your current car?

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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We have one payment left on our IVA in October. My wife's car is broken and is going to cost more than it is worth to fix (51 plate Clio). I have looked at finance and been approved for £5k @ £180/month for 4yrs which seems steep, and you have got the other annual costs on top.

I have looked into PCH too inc. maintenance but had no luck in getting quotes as yet. Which do you think is best and can you recommend any companies for PCH/finance?

Answer

Hi Colin, thank you for your question and apologies for the delayed response.

As you are only just coming up to the completion of your IVA you'll really struggle to get a PCP or PCH agreement on a new car. This may seem hard to take but lenders just won't offer good rates to someone in your situation unfortunately.

We do have lenders on our panel that help individuals in IVA's get finance so i'm reasonably confident we can help but it may be the same "style" of approval you already have. Can i ask where you have been approved already? An idea could be to potentially take out a hire purchase agreement over 3 to 4 years at a higher interest rate, keep up to date with the payments and then refinance onto a better rate when your credit score has improved.

How does this sound? I'm sorry it's not the answer you were looking for. Kind Regards, Rachel

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Hi, myself and my husband are 18 months into an IVA. We both have cars and need them for work however they are old and now starting to cost a lot of money to maintain and run.

My husbands Land Rover Freelander alone is costing us a fortune. We were wondering would it be possible to have HP for 2 cars or even one as this will decrease our fuel and maintenance bills etc.

Answer

Hi Claire, thank you for your question.

As long as you can prove your income there should be no reason why we can't get you 2 more economical cars on finance. We do have lenders that help people in IVA's and as long as you have their permission we should have no issues.

Once approved with us we provide a no obligation quote and you can buy a car from any dealer in the UK. Please apply when you get chance. Kind Regards, Rachel

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I was made bankrupt in 2009. Since this has happened I have been trying to rebuild my credit.

I have about £5000 credit now with catalogues and things (I only owe £350). Also I have a mobile phone contract and I have been trying to obtain credit and pay it off as quick as possible to up my credit score. My credit rating is sitting at 946 in the good category currently.

Anyway, I need to buy a car as the one I have has finally gave in. The only thing is I need a 7 seater as I have 6 kids with one on the way. Now, I haven't been working as I broke my foot 31 weeks ago and it hasn't healed yet. Would I get credit for a car? I do have £600 deposit to use towards one. But with not working will this go against me?

Answer

Hi Kelly, thank you for your question.

You're certainly doing all the correct things in terms of re-building your credit profile but as you were bankrupt a few years ago and don't currently have a job we wouldn't be able to help you on your own unfortunately.

If you have anyone else that can apply for the finance who is working then that'd be great. You could then be a named driver on the insurance policy so you could drive the car. Good luck with the new one and if there is anyone that can help please apply here. Kind Regards, Rachel

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Hi, I completed my IVA in Oct 2013 and would like to purchase my current DLA car in May 2014.

Would it be possible for me to get accepted for finance to enable me to buy my car? I have been re-building my credit and have kept up to date with all payments on credit cards etc. Thanks, Jemma

Answer

Hi Jemma, thank you for your question.

We'd love to help you re-finance your current car and this is possible as long as you are currently employed and have a UK licence. The good news is that you have been re-building your credit profile since you completed your IVA which is fantastic.

Please make an application if the above applies and once approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

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Hi Rachel

Thank you so much for your reply. I am not employed as I am aged 65 yrs, retired and registered disabled but I do have a monthly income of £1,570.50. I am currently paying £239.42 per month to motability for the car so am well able to meet any payments. Would I still be able to get a loan to purchase the car when my contract ends in May?

Also, I had a 5 year car finance agreement with Renault Finance when I entered into my IVA. I continued to make all payments to Renault during my IVA and completed the agrement with them on time and without any problems in May 2013. I received a letter from Renault Finance thanking me for my custom at the completion of my agreement. Do you think this would help? Jemma

Answer

Hi Jemma, thanks for the extra info.

From what you have said we still do have 1 lender that can help people on DLA get car finance even though you've not had the perfect past credit history. Please apply and let me know your reference number. Kind Regards, Rachel

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Hi there, I settled my IVA last year (13 months ago) after paying every payment on time and without hitch for the full 5 years.

I have a disposable income of £1,265 after all bills, including food, mortgage and the £250 per month I place into savings each month (currently have £4,000 saved up for a mortgage deposit).

I have just taken a new job with a £200 a month net pay increase and now have two options for a company vehicle. The first is simple; take a company car from the list and pay the BIK tax, this will be around £200 per month @ 40%.

The more tricky option, but the more lucrative, is to take the £550 per month (gross) cash allowance. This also includes, 45p a mile for the first 10,000 miles and 25p a mile for the next 10,000. After working out the sums, if I did 12,000 business miles a year, I will 'make' £300 a month more by taking the cash and buying my own car.

I have looked at cars worth £10,000 (within 4 years old) but clearly don't know if I'd get accepted for credit or HP? If not, would PCP be any easier to get hold of bearing in mind the loan is secured on the car?

If you can help me, it would be appreciated, my fear is that I opt for a Company car (4 year lease) and this would mean missing out on the cash benefit for that whole period. Also, I would own the car if I had a loan or HP .

Thanks Nick

Answer

Hi Nick, thank you for your question.

The great news is that you have completed your IVA without any hiccups and you have a large disposable income. As you have a large company car allowance this is great news too.

As you correctly point out there are benefits of getting your own car with the allowance (as you can keep the savings) and you'll own the car after the end of the hire purchase agreement. We'd struggle to get you a PCP in all honesty due to your past credit issues but i'm confident we can secure you a car loan.

The only benefit of getting a company car is that you can simply hand it back if you were to move jobs however, the decision is yours.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hello, I am 8 months from completing my IVA. I manage a residential home and live some distance away.

All I'd need is £3000 over 3 years and that would get me something remotely decent that I'd feel safe and have confidence in.

Answer

Hi Jacqueline, thank you for your question.

We can help people in IVA's get finance and as long as you have permission from your IVA practitioner we should be able to secure you £3000. You will need to provide proof of income though (payslips etc).

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender