Car Finance and IVA – What You Need to Know To Get Approved
Are you struggling to secure car finance due to being in an Individual Voluntary Arrangement (IVA)? Buying a new car can be a daunting experience, especially when your credit history is less than perfect. However, at Motorly, we specialise in providing car finance solutions for those with a poor credit score, such as those in a Debt Management Plan (DMP) or IVA.
So What Is An IVA?
An IVA is a legal agreement between you and your creditors to pay back your debts over a set period, usually five years. This arrangement is suitable for individuals with unmanageable debt and can help prevent bankruptcy.
I’m In An IVA – Can I Get Car Finance?
If you are in an IVA, you may be wondering if you are eligible for car finance. The answer is yes, but it may require a few extra steps.
Your IVA provider will have strict guidelines for approving new expenditures, including car finance. However, if you can demonstrate that a car is a necessary purchase, such as for work or caring for a vulnerable person, it may be possible to get a car finance agreement approved. You will also need to show that the car is affordable within your agreed budget and will not impact your existing debt agreements.
Top Tips For Getting Approved When You Are In An IVA
Check your credit report: Before you start looking for car finance deals, it’s important to check your credit report. This will give you an idea of your credit score and what lenders will see when they check your credit history.
Decide on your budget: When you’re in an IVA, it’s important to stick to a budget. Determine how much you can afford to spend on a car each month, factoring in any other debts and expenses you may have.
Look for specialist lenders: Not all lenders will be willing to offer car finance to those in an IVA, so it’s important to look for specialist lenders who are experienced in dealing with people in similar situations. Motorly is one such lender, offering bad credit car finance and debt management car finance plans.
Consider a guarantor: If you’re struggling to find a lender who will offer you car finance, consider asking a friend or family member to act as a guarantor for the loan. This will give the lender added security.
Choose a car wisely: When you’re in an IVA, it’s important to choose a car that is affordable and practical. Avoid the sports cars and instead opt for a more modest vehicle that meets your needs without breaking the bank.
Be honest: When you’re applying for car finance, it’s important to be honest about your financial situation. Lenders will want to know about any outstanding debts or financial issues you may have, so it’s best to be upfront about everything from the start.
How Motorly Can Help
At Motorly, we can help you navigate the process and find a suitable car for your budget. We offer bad credit car finance and debt management car finance plans that enable people just like you to get behind the wheel of a new car. We understand that having a poor credit score can make it harder to obtain car finance, but with our expertise, we can help you find the perfect finance solution for your needs.
It is crucial to consider whether you can afford the car payments before entering into a car finance agreement. By taking out a car finance agreement, this debt will be added to the plan that your provider is managing, and you will need to ensure that you can afford to pay the payments consistently for the lifetime of the contract.
At Motorly, we are committed to helping people with poor credit scores find a car finance solution that meets their needs. Visit our Bad Credit Car Finance page to find out more about how we can help you get behind the wheel of a new car.