IVA Car Finance

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Rates from 8.9% APR. Representative APR 22.9%

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Best available rate

XX% APR

Total cost of credit

£XXXXXX

Total repayment

£XXXXXX

XX Monthly Payments of

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Rates from 8.9% APR; the exact rate you will be offered will be based on your circumstances, subject to status

Representative Example: Borrowing £5,500 over 48 months with a representative APR of 22.9% (Fixed) and a deposit of £0.00 the amount payable would be £169.72 a month, with a total cost of credit of £2,646.56 and a total amount payable of £8146.56

Can I Get Car Finance While in an IVA?

Yes, it is possible to get car finance during an IVA, although the process is more involved than a standard application. Under the terms of most IVAs, you need written permission from your insolvency practitioner (IP) before taking on any new credit that exceeds £500. That means car finance almost always requires an IP approval letter before a lender will proceed.

The good news is that some lenders specialise in exactly this situation. Motorly is a bad credit car finance broker, and our panel includes lenders who are experienced in working with applicants who have an active IVA. They understand that an IVA is a sign you’re taking responsibility for past debts — not a reason to refuse you outright.

Why Choose Motorly for Your IVA Car Finance?

Having a reliable car is essential in today’s world, especially when managing an IVA. At Motorly, we’re committed to treating every customer fairly and helping them secure affordable car finance, regardless of their credit history. While many lenders may refuse applications from those in an IVA, we partner with lenders who see your IVA as a sign of your commitment to repaying debts and resolving past credit issues.

How to Apply for Car Finance While in an IVA

Applying through Motorly is straightforward, but there’s one important step to take before you start: contact your insolvency practitioner. You’ll need their written approval confirming that a car finance agreement is acceptable within your IVA terms and affordable within your current budget.

Once you have that, the process works like this:

Step 1: Get IP approval. Speak to your insolvency practitioner and request a letter confirming you have permission to take on the car finance. They may set a maximum monthly payment or total borrowing amount.
Step 2: Apply online. Complete our short application form. We’ll run a soft search only at this stage — it won’t affect your credit score.
Step 3: We search our lender panel. Motorly compares options from lenders who specialise in IVA car finance and presents the deals you’re eligible for.
Step 4: Choose your car. Once you’re approved, you can pick a car from any approved dealer, nationwide.

What You’ll Need to Apply

✓ Written IP approval letter (from your insolvency practitioner)
✓ Proof of identity (driving licence or passport)
✓ Proof of address (recent utility bill or bank statement)
✓ Proof of income (payslips or bank statements, typically the last three months)
✓ Details of your current IVA (provider name, monthly contribution amount)

Not sure where to start? Our team can talk you through the process — call us on 0161 519 1550 or apply online and we’ll be in touch.

Frequently Asked Questions (FAQs)

Do I need my insolvency practitioner’s permission to get car finance in an IVA?

In most cases, yes. The terms of an IVA typically state that you cannot take on new credit above £500 without your IP’s written approval. Car finance will almost certainly exceed that threshold, so you should speak to your insolvency practitioner before applying. They’ll assess whether the repayments are affordable alongside your IVA contributions. Applying without permission could put your IVA at risk.

Can I get car finance with an IVA and no deposit?

Some lenders on our panel may consider no-deposit applications, even for applicants in an IVA. However, offering a deposit, even a modest one, can improve your chances of approval and may help you access more favourable terms. Your insolvency practitioner may also have a view on how much you can reasonably put down without affecting your IVA payments.

Will applying for IVA car finance affect my credit score?

When you apply through Motorly, we carry out a soft credit search to check your eligibility. This does not appear on your credit file and won’t affect your score. If you decide to go ahead with a lender, they will carry out a full (hard) credit check before finalising the agreement, which may leave a footprint on your file. This is standard for any credit application.

What if my IVA has been completed?

Once your IVA is marked as completed, you no longer need your IP’s permission to borrow. However, the IVA will remain visible on your credit report for six years from the start date. Over time, its impact lessens, especially if you take steps to rebuild your credit. Motorly works with lenders who consider applicants with completed IVAs, and your options may be broader than they were during the arrangement itself.

Can I keep my existing car finance if I enter an IVA?

This depends on the type of agreement. If you have a Hire Purchase (HP), the car typically belongs to the finance company until your final payment, so it may not be treated as an asset in your IVA. Your insolvency practitioner will review your individual circumstances and advise whether you can continue the payments. If keeping the vehicle is essential for work or family commitments, your IP will usually factor the cost into your budget.

What types of car can I finance during an IVA?

Most IVA car finance agreements are for reliable used cars from approved dealers. Lenders may set conditions on the vehicle’s age, mileage, and value to keep the agreement proportionate to your circumstances. The key is choosing a car that fits your budget. Your insolvency practitioner will want to see that the cost is reasonable and won’t put your IVA at risk.

Applying With Us Only Takes a Couple Of Minutes & Will Not Affect Your Credit Score