My hubby and I are about 6 mths into our IVA. The HP agreement on our car is due to end in March with a v.large balloon payment due (which obviously we won't be paying!) I have written to the finance compny to explain our IVA etc but have heard nothing back as yet.
There has been lots of great advice on here about personal leasing of cars, but there is a problem. Assuming we get permission from our IP to do this, how do we afford the initial upfront payment that all of these lease companies require?? It looks like its usually about 3x the monthly payment which would be about £600! Jst wondered if anyone has any experience of this. Very worried as I can't walk 18 miles to work..
Thank you!!
I suggest you phone your IP about this. If they agree, you might be able to get a payment break in order to make the initial payment.
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An alternative is to get a trusted friend or relation to obtain the finance in their name and for you and your husband to make the payments. Your IP would need to approve but I doubt if they would have a problem given it is necessary for the IVA to continue.
I have no experience of leasing cars but do know that many finance companies will refinance a balloon payment as the last thing they want[particularly in today's depressed market] is a second hand vehicle to put to auction.
Put pressure on the HP company and speak to your IP. They may be able to help.
I am very suprised that this was not addressed in your IVA proposal, given that it has only recently been accepted and the agreement was due to conclude so early on into the arrangement.
I would always pick this up and get my client to enquire as to whether the existing finance company would agree to refinance at the end of the period - a lot of them actually do.
If you are forced to take out a lease car, I am sure that the IP will allow you to miss IVA payments to cover this, but they will probably need to be made up over the course of the agreement or at the end.
Hello x
Firstly have you tried to refinance the balloon payment? I did and found my existing lender very helpful, after I disclosed all my IVA paperwork, first proposal was rejected but when they new I had £275.00 built into my IVA plan, it was agreed and done. You also have to remember its tough going out there for car companies so they must want cars to be kept than being handed back.
Secondly my husband has just hired a car on long term hire with Bell Hire contact there was Jemma ( he has no credit rating ) and all he had to pay was one month rental when he placed the order (new car) and when the car was delivered his first rental payment after 12 months the car will be replaced for a new one.
There was a guy on here who has also used Bell Hire and was very pleased.
Hope this helps
Karen[:X]
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