Car finance with an IVA

Exploring car finance options with an IVA? We specialise in supporting people with low credit ratings, including those with IVAs, to get the car they need. Choose from flexible options like hire purchase, which lets you own the car over time, or personal contract purchase, with lower monthly payments. We work with specialist lenders who understand your financial circumstances, so you’re supported every step of the way.

What is an IVA?

An Individual Voluntary Agreement (IVA) is a formal debt arrangement between you and your creditors, managed by a licensed insolvency practitioner. It’s designed to help you repay what you owe through affordable monthly payments, typically over five to six years. With an IVA, interest and charges often freeze, and any remaining debt may be written off at the end of the term. This option offers a structured path to avoid bankruptcy and regain financial stability.

Can you get car finance with an IVA on your credit file?

Yes, you can secure car finance with an IVA. Traditional lenders may hesitate due to your credit history, but specialist lenders like Moneyrepublic understand these situations and offer tailored finance options. With the right support, getting car finance with an IVA is possible. Working with these specialists boosts your chances and moves you closer to driving the car you need.

What car finance options are available to me during my IVA?

Hire Purchase car finance with an IVA

If you’re considering car finance with an IVA, Hire Purchase (HP) could be a good option. With HP, you pay fixed monthly instalments over a set period, usually one to five years. This spreads out the car’s cost, making payments more manageable. Once you’ve made the final payment, the car is yours—a big benefit if you have an IVA. HP offers a clear and straightforward path to car ownership that suits your financial situation. Moneyrepublic specialises in setting up HP agreements for customers with IVAs, making the application process easy and accessible.

Personal Contract Purchase car finance with an IVA

PCP lets you make lower monthly payments because they’re based on how much the car’s value decreases over the contract. At the end of the term, you have two choices: make a final payment to own the car, or return it and consider a new model. However, PCP lenders often check credit histories carefully, so getting approved with an IVA can be harder. Waiting until your IVA is finished may improve your chances. PCP can offer flexibility, but it’s important to make sure this option fits your budget before you commit.

Will I actually know if I have an IVA?

Yes, you’ll be fully aware if you have an IVA. Setting up an IVA requires your active involvement with an Insolvency Practitioner, who will explain all terms, including any limits on payments or finance options. Keeping track of your financial commitments is essential to staying on track with your IVA.

Can I get IVA car finance if I am self-employed?

Yes, self-employed people can get car finance with an IVA, but lenders will take a closer look at your finances. They’ll check how stable your business is and if you can make regular payments. Support from your insolvency practitioner and showing how the car helps you earn an income can improve your chances.

Can I apply for joint or guarantor car finance if I have an IVA?

Yes, if your IVA makes car finance hard to get, joint or guarantor finance could be options. With joint finance, you and another person apply together, and their good credit and steady income can improve your chances. In guarantor finance, someone else, usually a family member or friend with good credit, agrees to make payments if you can’t. Both options offer extra support to help you get car finance with an IVA.