Car finance

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Aceshigh1993

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Post by Aceshigh1993 » Fri May 21, 2021 3:10 pm
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

Foggy

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Post by Foggy » Fri May 21, 2021 3:54 pm
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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

adam355

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Post by adam355 » Sat May 22, 2021 8:16 am
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.

kallis3

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Post by kallis3 » Sat May 22, 2021 8:29 am
That's good to know Adam - hopefully help out other posters.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Aceshigh1993

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Joined: Mon May 17, 2021 2:03 pm

Post by Aceshigh1993 » Sat May 22, 2021 10:06 am
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

adam355

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Post by adam355 » Sun May 23, 2021 11:19 am
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.

kallis3

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Post by kallis3 » Sun May 23, 2021 12:23 pm
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.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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