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Car Finance with an IVA, CCJ or defaults

If you have a bad credit rating due to a County Court Judgement (CCJ), are in an Individual Voluntary Arrangement (IVA) or have previously defaulted on other loan payments, then you might struggle to get car finance approval.

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We could help you get car finance, even if you:

  • Have no deposit
  • Are in an IVA/DMP
  • Have a CCJ
  • Have previously been declared bankrupt

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Approval for car finance

If you have a history of bad credit it might be due to one of the following:

Many lenders won’t consider your application if you are in any of these situations. That’s because they won’t want to risk lending to people who have a record of missed or late payments.

At Red Potato, we specialise in providing car finance for those who have bad credit. As a bad credit car finance provider, we were set up to arrange car finance for those who struggle elsewhere. We understand that your financial past may not be a true reflection of your situation now, so we consider much more than this when you apply.

We still consider your application, but in most cases, we will require more information from you so that we can assess your situation on an individual basis. Below is the information that we will need from you:

Individual Voluntary Agreement (IVA)

An IVA is an agreement between you and your creditors. Its purpose is to help you pay off your debts at a more affordable rate.

If you’re in an IVA and looking for car finance, we will require information from your creditors as well as a letter of permission from your Insolvency Practitioner (IP). They will either accept or decline your request to take a car on hire purchase. If approved, they will also provide you with a monthly budget that you must follow.

County Court Judgement (CCJ)

A CCJ is a type of court order that can be registered against you if you fail to repay money that you owe. This is only in England, Northern Ireland and Wales; the process in Scotland differs from this and is known as enforcing a debt by diligence.

If you have a resolved or unresolved CCJ then we will require more information on this including how long ago it was and your financial situation now.

Loan defaults

If you have previously defaulted on payments then we can still consider your application but may request a copy of your UK driving licence and evidence of your income (such as payslips or bank statements).

We’re here to help

If you have financial difficulties, whether these are current or if you have overcome them now, we understand that you will be conscious of not overspending and keeping to a budget.

We are authorised and regulated by the Financial Conduct Authority (FCA), so you can be confident that we will never offer you a finance agreement that you can’t afford and will work with you to get the best car deal for you.

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This website is operated by Premium Plan Limited. Red Potato is a trading name of Premium Plan Limited, which is registered in England with Company No 05977118. Registered office: Kempton House, Kempton Way, PO Box 9562, Grantham, Lincolnshire, NG31 0EA. Premium Plan Limited is authorised and regulated by the Financial Conduct Authority (FRN: 742272). The Red Potato name and logo are trademarks of Totemic Limited. Premium Plan Limited is a member of the Finance & Leasing Association (FLA).