Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Quick Car Finance are a broker not a lender.
Can I still get car finance with an IVA?
- Proof of income
- A letter of approval
- Details of your IVA
- Proof of identity
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IVAs and car finance
What is an IVA?
If you have an Individual Voluntary Arrangement (IVA), it may be more difficult to obtain car finance, but it is still possible. An IVA is a formal agreement between you and your creditors to pay back your debts over a fixed period, usually five to six years. It is a legally binding agreement, and failure to adhere to its terms can lead to severe consequences. If you have an IVA and are looking for car finance, it is essential to shop around and compare different lenders' offers. You may want to work with a specialist car finance broker who can help you find lenders who are more likely to approve your application. It's also a good idea to ensure that you can afford the loan repayments before committing to a car finance agreement.Get a quote
Before you apply
You must get written permission from your insolvency practitioner (IP) if you want to take out more than £500 worth of credit during your IVA.
- Letter of approval Completion or permission letter from Insolvency practitioner
- Details of IVA Documentation outling your IVA
- Proof of identity Identification and address verification
IVA Finance Checklist
- Proof of income
- You might need to show 'Proof of income', such as payslips, bank statements or tax returns. This will help the lender determine whether you can afford the monthly repayments on the finance. However, you will always need to provide a completion letter or permission letter from their insolvency practitioner.
- Information about your IVA
- You will need to provide information about your IVA, including the amount of debt you owe and how much you are repaying each month. The lenders will use this to assess your credit worthiness and determine whether they are willing to lend to you.
- You also need to provide identification and proof of address, such as passport and utility bill. This helps the lender verify your identify and ensure that they are lending to the correct person.
- It is possible
- Yes it is possible to get car finance with an IVA, but it may be more challenging than if you had a good credit score. Having an IVA means that you have previously had financial difficulties and this can make some lenders view you as a higher risk borrower.
- Specialist car finance providers
- However, some specialist car finance providers, are willing to lend to individuals with an IVA. These providers understand that having an IVA doesn't necessarily mean that someone is unable to manage their finances effectively now and may be willing to take a more holistic view of your financial situation.
How long will an IVA affect me for?
If you're lucky enough to have completed your IVA, not only will our lenders take this into consideration but it will also be listed as “completed” on your credit profile. Typically an IVA will remain on your credit profile for around 6 years, starting from the day it was issued. However the lender will be able to see if you have struggled to make repayments in the past. Then once having completed your IVA a lender will also consider your income too when deciding to lend to you and at what rate.Get a quote
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