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Can I Get Car Finance With An IVA?

Can I Get Car Finance With An IVA?

Anyone in a bad credit situation might be worried that they can’t get car finance, and if you have an IVA you might be wondering what this means for you when it comes to getting the funds in place when you need a new car.

What is an IVA?

An individual voluntary arrangement (IVA) is a formal, legally binding agreement between you and your creditors (the lenders you borrowed from) to pay back your debts over a period of time. It is a legal debt solution: This means that it’s approved by the court, and so everyone involved on both sides, has to stick to it.

Can I get car finance if I have an IVA?

Firstly, rest assured, it’s certainly not impossible to get car finance with an IVA. But it can make it more difficult. The good news is that the fact you’re in an IVA actually shows commitment to resolving historical credit issues. That said, it’ll be advisable, and a whole lot easier, if you apply via a specialist lender, such as us, as our advisers understand how being in an IVA works.

At Red Potato, we have expert knowledge in providing finance to customers in an IVA. We work with a responsible lender who recognises that an IVA shows a clear commitment to paying back debt, and the team is focussed on making sure that the new finance agreement is completely affordable for you

Trust the Specialists

Here, 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 might struggle with other lenders. 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 with us.

How will getting car finance with Red Potato work?

We never judge, we know that there are all sorts of reasons people find themselves in bad credit situations – and so we aim to do everything we can to help. We know how stressful getting finance can be too – so we take as much of the hassle away as possible.

Here’s how it works:

  1. You submit an online application
  2. We’ll need to see just a few basic documents, such as:
    • Your bank statements from the last 3 months
    • A copy of your full UK driving licence
    • A DVLA validation code
    • Most recent payslips if employed
  3. If you’re in an IVA and looking for car finance, we will ask for information about 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 have to follow.
  4. We then review your application, and get in touch with you by phone to let you know if your application has been approved.

If successful you can find your car using our easy-to-use car search or if you’ve found a car elsewhere, we can still provide you with competitive and affordable car finance. Representative 19.9% APR.

What can I do to improve my credit score in the future?

Once you have a negative recording on your credit file, it can take up to six years for it to be removed, that said there’s plenty all of us can be doing to make sure our credit score is on the up.

1. Check your credit report and make sure it’s correct

If you haven’t already, checking your credit report will give you a clear view of your current financial situation. There have been known to be mistakes recorded on credit files, so make sure that yours is up-to-date and accurate.

2. Know exactly how much debt you are in

Make a list of absolutely everything you owe – including if you owe money to friends and family.

3. Set reminders on your phone to make payments

Late payments are amongst the top contributors to a poor credit rating – and sometimes they’re simply because people forget! Some banks offer payment reminders via text or email to make sure you don’t miss any important payments, if not just set a reminder in your phone with an alert.

4. You can have debt but pay it back sensibly

Sometimes having debt can actually prove a positive on your file, but only if you show you make payments on time, and that you don’t make multiple applications for loans too often.

What next?

If you’ve not found out the information you need here, please take a look at the rest of our Help & Advice section or talk to one of our Customer Advisors today by using our Online Chat.

If you’re ready to apply for car finance online, you can do so today.

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).