IVAs and car finance

Being in an IVA doesn’t mean that you cannot get approved for car or van finance. Moneybarn is a car finance specialist lender who considers applicants who are in an IVA. Understanding what an IVA is and how one can affect your ability to be approved for finance, are the first steps to consider. Moneybarn’s IVA guide is here to help.

What is an IVA?

An individual voluntary agreement (IVA) is a formal agreement to repay your creditors at an amount you can afford. This can be a one-off payment known as a lump sum IVA or over a longer period to spread payments which usually lasts five or six years.

An IVA could be a good solution if you’re in debt as you’ll be able to write off any unaffordable debt and start to rebuild your credit score.



Can I get car finance when in an IVA?

If you are currently in an IVA it can make it difficult to take out a new credit agreement, such as car finance. However, it’s not impossible.

Being in an IVA shows that you are committed to resolving historical credit issues, but you may still find it hard to get finance. You may need to use a specialist lender such as Moneybarn, who understands how being in an IVA can impact your credit profile.

Moneybarn has expert knowledge in providing finance to customers who have bad credit or a poor credit score. Our team will ensure that the new finance agreement is completely affordable for you by matching the repayment amount and term to suit you. The APR will also be calculated to reflect your credit profile. Contact Moneybarn today or use our car finance calculator to get an idea of what you might be able to afford.

Can I keep my car on finance on an IVA?

If you are in an IVA you will usually be able to keep your car on finance but it can depend on the circumstances and permission of your Insolvency Practitioner will need to be obtained. If your vehicle is essential for you to be able to commute to work then it’s extremely likely you’ll be able to keep your vehicle and car finance agreement. If you have a car finance agreement with Moneybarn and you’ve entered into an IVA, contact us to find out more.

How will an IVA affect my credit rating?

An IVA will be recorded on your credit report which will result in a decreased credit score. This may mean it’s difficult to get credit such as loans, a mortgage or finance, as this information will help them decide how likely you are to pay them. An IVA shows you’ve had difficulty repaying debts in the past.

What does Moneybarn need if you are in an IVA?

Moneybarn will need to see a letter from your IVA supervisor, to say that entering into a new finance agreement will not put you at further risk. If you’re unsure you are eligible for car finance with an IVA, try our online car finance calculator, contact Moneybarn for assistance or apply for car finance online today.