IVA

Can I Get Car Finance with an IVA? Everything You Need to Know

February 24, 2025 | Written By: Daniel Kelly

If you have an IVA (Individual Voluntary Arrangement), you may be wondering whether you can still get car finance. The short answer is yes, but there are some important factors to consider.

Not all lenders will approve finance for those in an IVA, but there are specialist lenders who cater to people in this situation. This guide will explain how an IVA affects your ability to get car finance, what steps to take before applying, and how to improve your chances of approval.

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What is an IVA and How Does it Affect Car Finance?

An IVA (Individual Voluntary Arrangement) is a legally binding agreement between you and your creditors to repay debts in manageable instalments. It is an alternative to bankruptcy and helps individuals regain financial stability while avoiding legal action from creditors.

However, an IVA does affect your ability to get car finance:

  • Some lenders will automatically decline applications from those in an IVA due to the increased risk.
  • Others are willing to offer car finance but may have stricter requirements, such as higher deposits or proof of stable income.
  • You may need permission from your IVA supervisor before taking on new credit, including a car finance agreement.

If you are still in an IVA, the most important thing to do before applying for car finance is to speak to your IVA provider to understand your options.

Further Reading: Not sure how car finance works? Read our Bad Credit Car Finance 101 guide.

Can You Get Car Finance with an Active IVA?

The short answer is yes, but there are conditions.

Lenders that accept applications from people in an IVA will assess:

✔ IVA Supervisor Approval – You may need written permission before applying.
✔ Stable Income – You must prove that you can afford repayments without defaulting on your IVA.
✔ Proof of Financial Stability – Making regular IVA payments without delays improves approval chances.

Tip: Contact your IVA provider first to confirm whether you are eligible to take on new credit. Some IVAs restrict new borrowing without prior approval.

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Steps to Apply for Car Finance with an IVA

If you are in an IVA and need a car for work, family commitments, or essential travel, here are the key steps to follow:

Step 1: Get Permission from Your IVA Supervisor

Some lenders will not consider applications without written approval from your IVA supervisor. This is often the first requirement, so check with them before applying.

Step 2: Check Your Credit Report

Even if you are in an IVA, checking your credit score is important. Some lenders will offer better rates if you have shown financial stability, such as keeping up with IVA payments.

  • Request a free credit report from Experian, Equifax, or TransUnion.
  • Look for any errors and correct them before applying.
  • Avoid unnecessary hard credit checks, as they can lower your score.

Step 3: Compare Lenders Who Accept IVA Applicants

Not all lenders will approve car finance for those in an IVA. To improve your chances:

  • Look for lenders who specialise in bad credit and IVA car finance.
  • Use a broker or comparison service to find the best available deals.
  • Avoid applying to multiple lenders at once, as this can harm your credit score.

Step 4: Apply Through a Soft Search to Protect Your Credit

A soft search allows you to check which car finance options are available without affecting your credit score.

Check your eligibility now with Motorly’s car finance tool and find out what options are available to you.

Common Mistakes to Avoid

  • Applying for multiple loans at once – Too many applications in a short period can harm your credit score.
  • Not checking your credit report for errors – Incorrect information can impact approval chances.
  • Skipping the IVA approval step – If your IVA supervisor does not approve new credit, your application may be declined.
  • Applying without comparing lenders – Some lenders specialise in IVA car finance and may offer better rates.

Avoiding these mistakes can increase your chances of approval and help secure a finance deal that works for your budget.

Final Summary: Can You Get Car Finance with an IVA?

✔ Yes, but you need IVA supervisor approval before applying.
✔ Some lenders specialise in IVA-friendly car finance, while others may automatically decline applications.
✔ A stable income and strong repayment history can improve your chances of approval.
✔ Using a soft search tool can help you compare lenders without affecting your credit score.

Ready to explore your options? Check Your Finance Eligibility Now and find out which lenders may approve your application—without affecting your credit score.