Car problems and IVA

[long walk home]

Great forum guys, so pleased I found it!

Background:
Started IVA in March 2010, we have 2 cars (1 owned outright and 1 on finance (owe £1600, car value £2500)). One car is off the road as it wasnt needed and has not MOT, Tax or Insurance (this is the one on finance).

Our other 'working' car broke down last month costing over £800 to repair, now the turbo has blown and been quoted another £800 to repair.
We went to look at a new used car yesterday and got trade in values for our 2 broken cars as £2600 each.

Now my question is......If I trade in the 'financed' car and the garage clear the finance (£178 per month), and my father said he will take out the finance in his name for the new car (£150 per month). Can I pay my dad back and an extra £28 into my IVA or will I need to pay the £178 into the IVA and then £150 for my new car???

Not having a car is not an option, we live miles from the nearest bus, have 2 young children and repairing the cars is not economical.

Thanks guys!

[Foggy]

Hello and welcome.

You say the financed car is off the road as it is simply not used. Has the MOT just lapsed ? If so, why not recommission this car and get rid of the broken one ? This will have no impact on your IVA and you still end up with the one useable car as now ( well, up to now). Or are BOTH cars terminally broken?

If that is the case, run it by your IP. As you are "commuting" a current expense the IP might well agree.

[long walk home]

Thanks for your reply, the 'decommissioned' car is too small for the family car, its only a Clio, it doesnt need any work as far as I know, its just totally unsuitable for a family of 4 (you'll know what I mean if you have 2 kids!!) Plus theres the expense of MOT (£40+), tax £120) and high insurance (group 15 (£500-600)).

[Foggy]

Yes, I know what you mean -- we only have the one littl'un in a Skoda Fabia, )the "Skip") and that's bad enough! Mind you -- when my youngest was born ( a looong time ago) we made do with a classic mini ( well -- it was just a mini then, no classic!) -- I am so glad my back was supple in those days !

[plasticdaft]

a group 15 clio must be a decent fast sporty one!!!

Paul

[luluj]

Your suggested route seems reasonable, have a chat with your IP and gain their permission in the first instance.

[long walk home]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by plasticdaft

a group 15 clio must be a decent fast sporty one!!!

Paul

It is, it was bought a while back when we had money and no children!

[MrsKnight]

Hi long walk home

This is definitely one for your IP / IVA company to answer, keep all the receipts for the expenses you have already paid out & other bits mentioned in your post, as they may want copies of them just incase the creditors ask.
Cars are not my favourite subject after now being on car number 3 purchased in a IVA [:(!] We have had payment breaks, saved & begged for money from my dad to get through the car disasters we've gone through.
But IPs do understand & won't expect you to go without a car, so I'm sure they will support you through this.

Get onto your IP & let us know.

[UpToMyNeckInIt]

My car is starting to get to the stage of needing a few repairs as well.

Whilst I think I will be OK for the next 12-18 Months, I too wonder if I will need to replace my car. (I hope to do this by saving a little, and maybe taking a payment break or two nearer the time).

However, is it possible (with your IP's permission of course), to obtain finance through somebody like Moneybarn?

Has anyone done this whilst in an IVA? What are the interest rates like? Do your IVA payments get reduced to allow this finance?