Last updated:
January 11, 2024
Written by
Claire Fürst

Car Finance If You Have an Individual Voluntary Arrangement (IVA)

Navigating car finance while under an Individual Voluntary Arrangement (IVA) can be challenging, but don’t worry - it’s not an impossible task. Ozoomi is here to help simplify the process for you. 

Understanding IVAs and Their Impact on Car Finance

What is an IVA?

An IVA is a formal debt solution to help you manage and pay off debts over a period of time. It involves an agreement with your creditors, where you repay a portion of your debts in a way that's manageable for you, and won’t put you in more financial distress.

The Impact of an IVA on Your Credit Options

Being in an IVA shows lenders that you have had some past difficulties in managing credit. This is also reflected in your credit score. For a (deep-dive into credit scores, check out this article!). This information is recorded on the Insolvency Register, and can make lenders a bit wary of offering credit, including car finance. 

However, it doesn’t mean that you cannot get a car on finance if you are in an IVA. It just means you need to take a couple of extra steps to get it. 

Steps to Obtain Car Finance During an IVA

1. Insolvency Practitioner’s Assessment of Your Financial Situation

During an IVA, usually any credit over £500 requires the consent of your Insolvency Practitioner. You will need to check the specific terms of your IVA to avoid breaching the terms of your IVA.

2. Approval By Your Insolvency Practitioner

Your Insolvency Practitioner will evaluate if taking on a car finance agreement is feasible based on your income, general expenses, and other financial commitments.

3. Explore Suitable Car Finance Options

If your Insolvency Practitioner approves you to apply for car finance, you can start your search! Your options might be limited, but there are lenders who specialise in providing car finance for people with poor credit or those currently in an IVA.

Choosing the Right Car Finance Provider

There are lenders out there who have experience with customers who are in an IVA.

Good news, Ozoomi is partnered with them and has years of experience helping customers in the same situation as you. We understand that life situations happen and things out of your control can negatively impact your credit score. Ozoomi remains confident that, regardless of your credit score, we can work together to find the ideal car finance option that suits your unique needs.

We are committed to supporting individuals with a variety of credit histories, ensuring everyone receives the assistance they need with the respect they deserve. 

Go Forward With Caution!

While obtaining car finance during an IVA is possible, it’s important to always evaluate the terms, interest rates, and your realistic ability to make consistent repayments before committing to a car finance agreement. 

Securing car finance during an IVA is about finding a balance between fulfilling your mobility needs and maintaining your financial stability. The last thing you want is to put yourself under more financial stress!

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