Can I get a car on finance with an IVA?

If you have an Individual Voluntary Arrangement (IVA), you might be wondering whether you can still get car finance. While having an IVA can make it more difficult, it’s not impossible.

Published on April 15, 2025
Can I get a car on finance with an IVA?

If you have an Individual Voluntary Arrangement (IVA), you might be wondering whether you can still get car finance. While having an IVA can make it more challenging, it’s not impossible. In this guide, Carloans 365 explains what you need to know about getting car finance with an IVA and the options available to you.

1. Can You Get Car Finance with an IVA?

Yes, but it depends on your individual circumstances. An IVA is a legally binding agreement to repay debts, so lenders will see you as a higher-risk borrower. However, some specialist lenders are willing to offer car finance to people with an IVA, especially if you can demonstrate affordability.

2. Factors That Affect Your Chances of Approval

If you’re looking to finance a car while in an IVA, consider the following factors:

  • Approval from Your Insolvency Practitioner (IP): Since an IVA is a structured repayment plan, any new credit agreement (such as car finance) usually requires approval from your IP.
  • Your Credit History: An IVA negatively impacts your credit score, which can limit your finance options.
  • Affordability Checks: Lenders will assess your income and expenses to ensure you can manage the monthly repayments.
  • Size of the Loan: A lower loan amount with affordable repayments is more likely to be approved.

3. How to Get Car Finance with an IVA

Step 1: Speak to Your Insolvency Practitioner

Before applying for car finance, consult your IP to see if taking on new credit is allowed within your IVA agreement.

Step 2: Consider Specialist Lenders

Mainstream lenders may reject applications from people with an IVA, but specialist lenders work with those who have poor credit histories.

Step 3: Save for a Deposit

A larger deposit can reduce the amount you need to borrow and improve your chances of approval.

Step 4: Improve Your Credit Score

While an IVA remains on your credit report for six years, you can improve your credit score by making timely payments on existing accounts, registering on the electoral roll, and keeping credit usage low.

Step 5: Compare Finance Options

Different lenders offer varying terms for those with IVAs. Comparing options ensures you get the best deal.

4. Alternative Options if You Can’t Get Finance

If you struggle to get approved for car finance, consider:

  • Buying a Cheaper Car Outright: If possible, saving up for a used car could be a better option.
  • Using a Guarantor: Some lenders allow a guarantor (such as a family member) to co-sign your agreement, increasing your approval chances.
  • Waiting Until Your IVA Ends: Once your IVA is completed, you’ll have more financial freedom and better finance options.

In conclusion

Getting car finance with an IVA is more difficult but not impossible. By working with specialist lenders, demonstrating affordability, and seeking approval from your IP, you can improve your chances of securing finance.At Carloans 365, we help people in all financial situations find the best car finance deals. Contact us today to discuss your options and get expert advice on financing a car with an IVA.

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Can I get a car on finance with an IVA? | Carloans 365