We have two cars in our household, we need them
both because we live in the middle of nowhere, work shifts and there is no way of using public transport to get to and from work. We also work opposite shifts to minimise child care costs and to cover school runs.
Both cars are financed with balloon payments after a certain time. One expires and will need to be re financed in the new year. The other can effectively be handed back in the new year, but we would
Still need another car, so were thinking of a much cheaper one.
If my wife and I apply for and are accepted for an IVA. How would that affect these two finance agreements ?
Realistically, would we be able to do anything relating to finance of these cars. We have never missed payments on them. We know we can free up some money in thanked year, but that would mean we would
need to 'source' a smaller cheaper car from
You would need to contact your finance company and ask the question about refinancing the balloon payment whilst you are in an IVA. If you can refinance the whole debt now, including the balloon, and spread it over the five years then this may be a sensible route prior to the IVA. The car that you are handing back can be factored into your IVA payments so that the IVA payments increase when you stop paying for the car.
You would need to sort out a cheaper car before your IVA starts and factor any costs into your expenditure.
Speak with the company arranging your IVA as they will have the full facts surrounding your case
I am only in the very early stages of applying for an IVA and we also have a car on HP with a balloon payment due in 12 months time. Our IP has advised us that we MAY be able to have finance to fund the balloon payment, not a definete though, and after the balloon payment is all paid up the amount we would pay each month into our IVA will be increased. Hope this helps a bit
I consulted citroen when i first went into my iva what was going on, when my balloon payment was due, i had a further 2 years of paying the same amount for the car, i sent all this paperwork to citroen finance, don't bother going to the car showroom as all they are after is a sale. Go straight to the head office and speak to a finance manager, i then sent the details off showing i had factored another 24 months to pay for the car. My IP factored this in the start of my IVA, when the balloon payment was due, i automatically went over to continual payments for 24 months, last month i actually paid my last one, and the car is now mine. As of next month i now pay an additional amount into my iva as i have one less bill.
In summary, talk to the car finance dept and speak to your IVA IP, if both are on side, it can be an easy arrangement, mine was.
Last edited by antm on Sat Aug 28, 2010 10:38 pm, edited 1 time in total.
Thanks all for your replies...
It's reassuring that there are so many people in similar circumstances who can point the way. I know how and why I am in this position. And want to pay it back. But am stuck in that vicious circle that I am sure we all
Am sure I will have many more questions before finally taking the plunge... Thanks everyone.