Buying a car when entering into an IVA

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Enkhbat
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by Enkhbat » Wed Aug 08, 2018 7:19 am
Hello. I am about to enter to the agreement with iva. I need to buy a car for the work purpose. I would buy only a second hand car around £650-700. I also need to pay insurance in this case. How should I go about it please.
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MerlinL14
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by MerlinL14 » Wed Aug 08, 2018 7:55 am
If you are not yet in the IVA then go ahead and buy it now. As long as the car cant be seen as an asset and at less than £1k it won't be, you are pretty much OK. The running costs should be added as an outgoing when you and your IP calculate your I&E document, remember to add a cost outgoing for servicing as well as insurance, MOT and VED.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 08, 2018 8:34 am
At what stage are you with the IVA?

Where are the funds coming from to buy it - If from savings then I presume the cash has already been disclosed as an asset in your proposals (if drafted)?
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Foggy
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by Foggy » Wed Aug 08, 2018 8:37 am
As above .. get it sorted now, before the IVA and speak to your prospective IP.
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kallis3
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by kallis3 » Wed Aug 08, 2018 9:11 am
I agree you need to get it sorted now.
Enkhbat
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by Enkhbat » Sat Nov 10, 2018 9:09 pm
Thank you for the earlier posts. I have already entered the IVA and I still need to buy a car due to work purposes. However, I don't have money to buy ,but a very close friend of mine is willing to help me to pay for the second hand car and its immediate costs. I will need to make a contract with him to pay back this money by installments for over 2-3 years. But the problem is my insurance will be very high around £2000-25000 as I am first time driver. Next year I have to pay more money (probably significant amount)for insurance which may make things complicated. I have spoken to my IVA advisor who stated that I have to buy a car from car dealers. I was thinking about buying it on Shpock or Ebay. Could anybody advise me on this please.
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Foggy
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by Foggy » Sat Nov 10, 2018 9:13 pm
If they agree to you buying this car tyhey cannot dictate where you buy iy from. However, I cannot see them agreeing to it being funded by a loan (even from a friend) nor can I see them allowing that kind of insurance premium. Regarding the borrowing from your friend, they might agree if the "loan agreement" specifies repayment can only start after the IVA finishes ... that would be a long wait for your friend.
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Lisa Thomas
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by Lisa Thomas » Mon Nov 12, 2018 1:13 pm
It might be better and simpler for the friend to buy and own the car and for you to 'rent' it from him.
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