What do car PCP companies do when they see your in an IVA

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wakeywakey
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by wakeywakey » Tue May 02, 2017 4:56 pm
I am considering an IVA as a way out of my debts, but I have a car on pcp and I have heard that some companies take back the car once the IP informs them of the IVA.

Is this correct?

If not, what exactly happens when they do find out?
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kallis3
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by kallis3 » Tue May 02, 2017 5:06 pm
It all depends on the car company - some are ok and others will want the car back.
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Foggy
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by Foggy » Tue May 02, 2017 5:17 pm
As Kallis says -- it varies from company to company. Some are happy to leave the lease run as long as you make payments .. however you will run into problems when the lease expires as you will not be able to finance any residual ( balloon) payment. Some, however, will repossess if the terms allow it.
wakeywakey
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by wakeywakey » Tue May 02, 2017 6:49 pm
Has anyone any idea of whom will and whom won't take car back?

Mine is Ford Credit!
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Foggy
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by Foggy » Tue May 02, 2017 6:58 pm
Ring them on a no names basis (from a different phone than yours as they log numbers).
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benjiboo1
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by benjiboo1 » Tue May 02, 2017 7:08 pm
I was with Ford credit. I had 2 years left on the lease when i started my iva. They did not take the car off me but would not re-finance when my 3 years with them was up. I had not missed any payments but you are looking to re- finance it & no chance as you are in an iva. I had to hand the car back.
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luluj
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by luluj » Tue May 02, 2017 9:47 pm
I think it depends on a number if factors ..one of which no doubt will be based on how well you have managed payments until that point. As others suggest they may well let you continue with the current agreement but are unlikely to agree a new one for you whilst you remain in an IVA
wakeywakey
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by wakeywakey » Wed May 03, 2017 10:36 am
I have a PCP with Ford credit.
I am desperate to start an IVA but have been reading about car finance/pcp repossessing cars once they are told of an IVA.
Do you guys know if this applies to Ford Credit as I really don't want to lose car
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kallis3
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by kallis3 » Wed May 03, 2017 10:38 am
Merged to avoid confusion.
wakeywakey
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by wakeywakey » Wed May 03, 2017 7:54 pm
I phoned thema and they said they don't take cars unless non payment.
They confirmed that they don't finance the balloon payment.

I took this to also mean they won't allow you another new car?

What do you guys do when the 3 years are up and you've handed back the car?
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kallis3
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by kallis3 » Wed May 03, 2017 8:08 pm
Good news that you can keep your car for now. No idea what happens afterwards unless you can find a family member to finance a car for you.
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benjiboo1
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by benjiboo1 » Thu May 04, 2017 7:37 am
I found a garage that would finance me on a car. Same amount a month as my Ford was but an older car. The interest rate was not high either.
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Michael Peoples
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by Michael Peoples » Thu May 04, 2017 12:19 pm
It is unusual for a PCP company to refinance a balloon when the client is in an IVA. We will allow our clients to borrow the funds from family if they can and just repay at the rate they repaid the original agreement.
wakeywakey
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by wakeywakey » Thu May 04, 2017 1:10 pm
so do the IP s allow you to buy another car on finance to the value of your previous pcp payments?
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Michael Peoples
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by Michael Peoples » Thu May 04, 2017 1:17 pm
We do but I cannot speak for every firm. A vehicle is essential for work so we allow the balloon to be refinanced if possible or our clients can source funds elsewhere. There are specialist lenders for those in IVAs but the cheapest and usually best option is to borrow from family and repay at the same terms as the PCP agreement. Once this has been done we will uplift the payments if the loan is repaid during the term of the IVA.
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