IVA Car Finance

Even if you're navigating the complexities of an Individual Voluntary Arrangement (IVA), we understand that financial challenges shouldn't stand in the way of your independence and mobility.

That's why we're proud to offer specialised IVA car finance solutions tailored to your unique circumstances.

With our dedicated team of experts and a wide selection of vehicles to choose from, we're committed to helping you find the perfect car that suits both your needs and budget.

So, how does an IVA work? Discover more about our IVA car finance process and begin your journey towards a brighter automotive future with Stoneacre.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is established between you and any creditors you owe money to.

It is an agreement to repay them over a defined period of time, typically five to six years - however, you can also opt for a lump-sum IVA payment, which will shorten your repayment period.

As a court-approved arrangement, an IVA ensures that consistent payments lead to the settlement of your debts, providing an alternative to bankruptcy. This repayment plan will be tailored to be manageable for IVA customers, and approval from the creditors is necessary.

Once in effect, creditors will cease pursuit of payments, as long as the agreed-upon repayments are being met.

The key benefit to an IVA is that it allows you to commit to settling your debts, marking a significant first step in rebuilding your credit profile, even though initially it will lower your credit rating.

During this period, acquiring new lines of credit may be challenging, but you can strive towards becoming eligible for car finance.

Can I get help with my IVA?

For advice on handling an IVA, visit StepChange Voluntary Arrangements. StepChange VA is a debt charity; their team can assist in setting up an IVA and provide support throughout the entire process.

Visit StepChange Voluntary Arrangements

Can I get car finance with an IVA?

While it is notably harder to get car finance with an IVA, it’s certainly not impossible - though it’s important to know where you stand when it comes to applying for finance in such a position.

Having an IVA showing on your credit history is a definitive sign to lenders that you have struggled in the past to pay off your debts, and they will naturally be less likely to want to loan money to you.

One important aspect that is that permission will be required for any new line of credit over £500, which can certainly make it more difficult to obtain car finance whilst in an IVA - but from a Stoneacre point of view, we can facilitate car finance for IVA customers.

Permission is needed from your insolvency practitioner, and your IVA company will set the maximum allowance for any monthly payments.

From our side, we would require proof of this permission before we can start your application.

You also need to pass our soft search credit check with any of the lenders we work with. Once this is in place, we can start to process your car finance application en route to you getting a new car.

How long after an IVA can I get car finance?

To have the best chance of being approved for car finance after going through an IVA, your chances will be significantly higher once the IVA has been successfully cleared.

• An IVA remains on a person’s credit report for six years from the start of the agreement. It will be removed from the Individual Insolvency Register three months after completion.
• You won’t need permission from anyone or anywhere to take out a new line of credit once the IVA has cleared, but until it is removed from your credit report, it will be flagged to lenders.
• If you’re looking to apply for car finance after your IVA has cleared, you can check your eligibility for free at Stoneacre without it affecting your credit score.

Be mindful that your finance coordinator will subsequently be required to process a ‘hard search’ before getting you fully approved.