I'm after some advice! We completed our IVA at the end of last year so are just waiting for all off the paperwork to officially sign it off (one creditor being awkward and holding things up!). Now we have some extra cash we are considering replacing our clapped out car. Is anyone able to offer any advice on the best way to go about this?
We have considered car leasing, Nationwide Vehicle Contracts have some great deals - I doubt we would get a car through them but would be keen to know if anyone has managed to. The other option is Duncton. I've asked for a quote, just waiting for it to come back but there APR is so high. What are other peoples experiences of them and how reasonable are the repayments for a 2-3 year repayment plan? ....or any other suggestions for lease companies/finance would be great!
Another question for the experts - am I ok to do this now and have credit checks if needed?
I would be really grateful to hear your thoughts.
Natalie.
Last edited by Nat14 on Fri Jan 21, 2011 10:36 am, edited 1 time in total.
Congratulations on completing- what a relief! check with your ip that you can go ahead and get credit first - if a creditor is being awkward it may be that the iva isn't closed down yet. The iva will remain on your file for six years from acceptance so may still be there and will probably block most credit applications in the regular Market. It is worth trying a couple of dealers but a specialist like Duncton may be your best option. I've been hearing about microfinance recently but don't know whether these sites would accept people post iva either...I just think they would be more likely to see you as a person (rather than a risk profile) and listen to your story. Good luck with the new car - I have just ordered a Fiat 500 and can't wait! Nb: my boyfriend is taking on the credit and I am paying it under the terms of a lease agreement between us. Actually, could someone do this for you?
Duncton do come recommended by posters on here as they will accept people with a less than perfect credit record.
If you can get someone else to take out the finance for you that would be even better.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for your replies. Unfortunately I don't have anyone that can take the finance out for me. I'll wait and see what Duncton come back with and take it from there I think.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Congratulations on completing your IVA. As BOL says, may advice would be to hold fire with applying for any credit unilt you are 100% sure your IVA has been completed and you have the cirtificate of satisfaction.
One other thought, would it be possible to hold out with your old car for a few months longer? If you can manage to save up a couple of thousand over a few months, there are some great deals on second hand cars at present and you would not have to get into any expensive finance agreements....
The IVA will still show on the credit record for a further twelve months from completion so I doubt ordinary companies will touch you.
Unless you pay cash for second hand cars then you will have to take out finance.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
We really don't want to take out finance after having 5 years of paying for the mistakes we made in the past but doing the sums the money we will save in petrol (currently £60 a week) will pay for the lease car almost! The car won't last much longer, it has engine management lights on, the Turbo has broken on it and many other issues so is using extreme amounts of fuel.
I contacted Duncton this week and was quoted £289 per month over 4 years for a £8500 loan - that makes it a total of £13500 almost.....I want a new car but not that much....the APR was 41% !
I have decided to make do for 6 months - save all of what would have been my IVA payments and then go abd buy a second hand car and part exchange ours......
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
The APR is high, but at least they will take on people with a less than perfect record.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Kallis I agree - this will be the only option for some people but I was put off by the 41% APR.....life before my IVA I would have jumped at it....we could easily afford the £289 a month now...but I bulked at it and re-thought our plans.....two months on we are still living life as in an IVA and not missing anything !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Unfortunately not everyone is lucky enough to be in your situation Luluj and will have to pay a higher APR - I know if my car dies in the next couple of years I will have to.
Skippy - I appreciate I have been very fortunate to be able to end my IVA early due to the untimely death of my godmother - I would much rather she be here still, but as she is not I have to make the best of the situation.
I understand that not everyone will be able to finance a car loan without having to go with such a high interest rate - but for me it seemed really steep, and our car is not at deaths door so we have decided to save for a few months to gain more of a deposit.
It really gripes me though that all of us who have been through IVA's and Bankruptcy have learnt our lessons and we are penalised so heavily when actually we are probably more responsible than most others !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
We use Dunctons - had to when hubby's car died during IVA. The costs may be high, but believe me it's worth it to know you have a reliable car with no repair bills to face.
Hi - we are penalised with APRs but our histories show us to be risky business; by charging a high apr they get more money back sooner so if we default again we don't take them for so much as if we were on a regular apr. Specialist lenders do have a place and I like to think of them as a stepping stone helping us repair our credit records and giving us the opportunity to prove ourselves for the mainstream lenders. It may be that in a couple of years a bank will lend to clear the Duncton debt and you could finish the loan on a much better apr.
