Car options

[Gareth.hs]

I have been running a 13 yr old 2nd car for over a year, which is becoming expensive to run and unreliable. It is not realistic to expect it to be fit and healthy for the full period of our iva (another 4 years) and is and will continue to be a strain and worry on our budget.
I was wondering what options may be available to get a reliable cheaper to run 2nd car on the iva.
My wife is now working and drives our main car and is contributing half her disposable salary to the iva. We are now paying in more to the iva than was originally planned and would now be scheduled to pay 100% (originally 97%)of our debt back if remortgage approved and 59% (originally 42%) if not.
Due to my wife working, the 2nd car is now seeing a lot more of the road, as I need it for work
Do you think IP/creditors would consider offsetting some of my wifes additional contributions towards a more efficient and reliable 2nd car?
I dont really want to buy a car as I dont want to have to defer any iva payments to save up and realistically wouldnt be able to save up enough to get anything very new.
The long term rent or leasing option appeals to me but it would rely on freeing up some of my wifes contributions.
Any ideas/advice would be much appreciated?
We are due our first annual review very shortly.
Regards
Gareth

[luluj]

Hi Gareth - if you speak with your IP and explain the situation they may be able to agree something with you ! there are ways round these things and I am sure there is a solution for you !

[kallis3]

I would certainly mention this to your IP - I am sure you can come to some sort of arrangement.

[Gareth.hs]

I wish I shared your confidence in coming to an agreement. I have never spoken with or had any correspondence from my IP to date and dont really feel they will be keen to reduce additional contributions for my benefit, after refusing to take into account our life insurance payment on our expenditure sheet to put into the iva, at the start. Hope I'm wrong though. Any idea what options I may have with getting a car or am I asking too much?

[Foggy]

I am afraid I share Gareth's pessimism here .. but am ever hopeful of a pleasant surprise ! Having said that ( and I know we are not in the same ball park) they did allow me to spend £500 out of extra payments in order to take additional work (which has seen a tenfold return on their "investment" to the creditors. So as long as you can put forward the arguement that the spend now will get them more in the long run, they might go fo it.

[Gareth.hs]

Thanks Foggy - I guess everything is fine until something happens, the car breaks, cant afford repairs, cant afford to get a new car, cant get to work as I live quite rural area with no reasonable bus service, cant continue to provide same service company are used to/expect.......... and you are on the slippery slope.
I have picked up on some threads where I got the impression the IP should have taken into account (not sure how) age of car at start of iva. Still we are where we are. Surely other people have had to replace cars over the duration of an iva and even half decent old banger would be £2K- £3K, these days? Just wondered what options (if any) there are?

[Foggy]

It really all boils down to what your IP will agree to. Any Lease or HP, if available, will be at a horrendous rate of interest due to the IVA.Hopefully someone will come up with a bright idea.

As for taking into account the age of the car, mine ( as probably did yours) asked for the mileage as well as a copy of the V5 ... know idea if they take any note of it though.

My plan is, if the Skoda gives up the ghost, buy a banger that will last at least a year at a time and scrap it, if and when it fails. I have lost all semblance of pride in my cars

[Gareth.hs]

Me too Foggy, not really fussed what I drive but just want to be able to get there. Guess I will be going from banger to banger but its the in between costs which add up, on top of house maintenance/repairs etc, had a bad year for kitchen appliances too! That god for ebay

[deepinit]

I to had this problem and after contacting my IP was allowed to ask my mother to take out a £5000 loan to buy a secondhand car I then got an allowance of £125 per month from my overtime to repay my mother, I had to write a letter explaining that if for some reason I didn't have any overtime that I would make payment up and it would not affect my normal IVA payments, I think its a matter of common sense that people need a car for work and no car no work means no income, if you have someone that would be able to look at doing this route they may let you use extra income to make the payments, mine is all timed that I've paid my mother back as the same time my IVA is finished.

hope this is of some help to you

[shippers]

I have been spending some time looking at Car Finance while in an IVA and i must say its a minefield.

Car finance is available, if you want to be ripped off:

Carloans4u, simply a broker of moneybarn, just go straight to moneybarn and avoid them.

Moneybarn, outrageous APR and stupidly high deposit required. I would avoid.

carcraft, i got an conditional accept, but mentioned a resonable deposit, you would also need to also goto one of their branches to get an offer though (bear in mind they have just had a reprimand from the OFT!)

Best bet is in the non-status contact hire, do a search, a good few firms willing to lease with a resonable 3-4 month in advance with a 3-4 year deal.

For me personally I am `renting` my step fathers car while he recovers from illness, so when that arrangement comes to an end, i`ll be back hunting but so far i simply refuse to allow certain companies from wearing their masks and holding me to ransom, they should be ashamed of themselfs, they know we are in no position to bargin so can charge whatever the feel like.

grrrrrrr

[kallis3]

Unfortunately those iof us in either an iva or who are br have accept that we are seen as a risk and so.the companies taking us on for such things as car loans are looking after themselves in case we don't pay.

I'm pleased that there are such companies out there, even if their interest rates are high. They are the only way some people can get a newer car.

[Gareth.hs]

Thanks people,

Was hoping there may be a long term renting option for £150 - £200 a month, using some of wifes additional contributions. Maybe will just have nurse the old banger through the next 4 yrs.

[Foggy]

Gareth ... few days ago you were asking if I had got my review forms -- they arrived yesterday ! I was surprised that they aren't asking for much, and no expenditure details.

[Gareth.hs]

Hi Foggy - Similar, we were just asked for last 3 months pay slips, P60 and fill in windfall declaration form. No request for bank statements or an updated I&E.
I actually want to go through I&E because it is so different to when we started iva, it mostly balances out but if they just look at pay slips they will think we are quids in and prob request increase.
When we informed IP of differences we were just told it would be captured at annual review.
Hoping to arrange our telephone chat for some time next week.

[Foggy]

Should be interesting, Gareth. Best of luck with yours. I will be a bit behind as I have to prepare accounts for the self employed part time work we do.