www.iva.co.uk

Hello,

When I entered my IVA I had a car on finance, but this was excluded.
I've now paid off my car, but it's getting to a stage where the repairs on the car cost more than the car is actually worth.

I've been told by a finance company that i would need permission from my IVA company to set up another finance deal.

I was previously paying £150 a month for my car

Given that my finances have improved a little bit since then, would i be allowed to spend more on a Car, or would it need to be for the same amount as my previous one was?

Thanks

If they agree ( your IP) it would probably be limited to the current expenditure --- if your income has increased you would be expected to finance any increase in the car payment from the half of the pay increase you get to keep.

I've just done something very similar and it was as Foggy has stated. My payments did increase slightly and when I wrote to my IP asking for permission to lend I stated that the additional would be funded from some disposable income we had built up via (50% of) a. pay rise last year.

If it helps I used Carfinance247 who are a broker. I ended up with moneybarn and payments were a few £ cheaper than with moneybarn direct.

It was all a bit of a faff on but carfinance247 were great and guided me through the steps.

That's good to know Adam - hopefully help out other posters.

Sat May 22, 2021 8:16 amadam355 wrote:

I've just done something very similar and it was as Foggy has stated. My payments did increase slightly and when I wrote to my IP asking for permission to lend I stated that the additional would be funded from some disposable income we had built up via (50% of) a. pay rise last year.

If it helps I used Carfinance247 who are a broker. I ended up with moneybarn and payments were a few £ cheaper than with moneybarn direct.

It was all a bit of a faff on but carfinance247 were great and guided me through the steps.

I know it's a case by case basis but what did your IVA company allow you to spend on a car? If you don't mind me asking

Sat May 22, 2021 10:06 amAceshigh1993 wrote:

Sat May 22, 2021 8:16 amadam355 wrote:

I've just done something very similar and it was as Foggy has stated. My payments did increase slightly and when I wrote to my IP asking for permission to lend I stated that the additional would be funded from some disposable income we had built up via (50% of) a. pay rise last year.

If it helps I used Carfinance247 who are a broker. I ended up with moneybarn and payments were a few £ cheaper than with moneybarn direct.

It was all a bit of a faff on but carfinance247 were great and guided me through the steps.

I know it's a case by case basis but what did your IVA company allow you to spend on a car? If you don't mind me asking

To be honest my IP didn't seem at all interested in how much I was spending on the car (or borrowing for that matter). They just wanted to know that the new monthly payments wouldn't be changing too much and that the finance on the current car was paid off as part of the transaction.

The car was just over £16K in total but we had £6K equity in the car we traded in.

I'm quite surprised about that - when I did my IVA I was asked if I wanted to sell my car (which was three years old and worth about 8 grand at the time) which wasn't an option. I know BR is different to an IVA but you would not be allowed a car worth that much regardless of how much you put towards it.