What is an IVA?
Arranged between a person and their creditors, an IVA is a legally binding contract to repay debt in a fixed sum that is affordable to the individual over a set amount of time.
Can I get car finance in an IVA (Individual Voluntary Agreement)?
Yes, you can! Red Potato offers Hire Purchase (HP) car finance to those in an IVA from 19.9% APR representative. You must seek permission from your Insolvency Practitioner if you are in an IVA or Trust Deed in order to take finance on a vehicle.
Which cars do Red Potato finance?
Our helpful team can find you the perfect car to meet your requirements, or if you’ve already found a car, we can assess HP finance options with your chosen dealer. Check out our Finance Calculator to see what you could borrow.
Hire Purchase (HP) finance… what is that?
Hire Purchase finance means that you pay back the money you have borrowed to purchase the car, over 3-5 years with added interest. You will only own the vehicle once you have made all payments due under the agreement, until which Red Potato own the vehicle.
Will applying for car finance affect my credit score?
At Red potato we perform a soft credit search to determine your eligibility for an affordable car finance agreement. This does not leave a footprint on your credit file or affect your credit score.
My finance is due to end and I have a lump sum payment?
If you’re coming to the end of your car finance agreement and have a final lump sum payment to make on your car, Red Potato can help. We offer balloon payment finance to help make your outstanding balance more affordable.
Financing your balloon payment
Many people get to the end of their car finance term and don’t have the funds to make the final payment. If you find yourself in this situation then one option you have, is to finance your balloon payment.
Balloon finance can provide you with a cost-effective option to paying the remaining balance on your car. Instead of paying off this amount at once, the cost is broken up into affordable monthly payments.
Click here to use our Finance Calculator or Apply for Finance Now
What do I need to apply for car finance whilst in an IVA?
To process your application, we’ll need your latest month’s bank statement, along with a month’s worth of payslips (or your most recent tax return if you are self-employed). You also need a full UK driving licence and permission from your Insolvency Practitioner.
Representative Example: Borrowing £5,500 over 48 months with a representative APR of 19.9%, the amount payable would be £162.34 a month, option to purchase fee £10.00, with a total cost of credit of £2,302.32 and a total amount payable of £7,802.32