Mum on IVA, needs a replacement car but can't get finance

A question about : Mum on IVA, needs a replacement car but can't get finance

Just wondering if anyone can give me some advice. My mum is halfway through paying her IVA off (think she has 2 years left), and is desperately in need of a new car. Her current car keeps breaking down and needs approx a thousand pounds worth of work doing to fix it; she needs the car to get to work (as she works 25 miles away from home) and struggles with arthritic joints and a bad back so can't be without a car. Her IVA providers have agreed that she can try to get finance to get another car, but due to her credit rating no-one will touch her. She is trying to save up the money so that she can trade the car in for a better one but the time it is taking for her to save means that the car is depreciating in value. I wish I could loan her some money to help but I don't have anything spare in savings as I am 2years into a 35 year mortgage.

Does anyone know if there are any companies that are willing to offer used car finance to someone on an IVA? Or is it a possibility for me to try to get a car on finance for her (and her give me the money to make the repayments) as my credit rating is ok (although I don't live with her, she is in Manchester I am in Newcastle upon Tyne - not sure if I can legally do that or not)? I'm just desperately trying to figure something out to help her as the stress and worry of this is making her ill and very depressed. Any advice anyone can give me would be a great help.

Thanks

Joanne

Best answers:

• I don't see why you couldn't get the loan. If approved it is effectively your money to do with want you want. Just it comes back to you to pay it off.
• I think the issue is that many finance companies wont lend due tho the credit history
  You could try either Moneybarn or Carloans4u - they are usually good for car loans with people who have a less than a perfect credit record.
• If you intend on getting a loan for your mum and her to pay you the monthly installments then I would run it past her IP first in writing and wait for their reply.
  If you take out a loan and the repayments cannot be added to her monthly expenditure at the annual review then she wont be able to keep up the payments and you will end up paying it.
  What is the current car and the issue with it? Would it not be cheaper to get it repaired and keep using it than to sell it for peanuts as it has issues that will cost the new owner Ј1000 to fix and spend another X amount of thousand pounds for a new car?
• Thanks for your help everyone; she has managed to get it going again for now. The problem is it won't always start, particularly if she is parked facing uphill - the engine starts (so it's not the battery) and immediately cuts out again. It also needs the clutch and the flywheel replacing very soon as it the mileage is very high (& has started whirring and juddering as well), hence the large bill. I spoke to her about spending the money on fixing the car up instead but she said she has already spent a lot on repairs and doesn't want to be spending more as she'll have spent more than the car is worth.
  She has actually managed to get another car sorted this weekend, she went to see a used car and the dealer has offered her more than she thought she would get for her car in part exchange - she had enough saved up plus the car to get this one without needing finance; it's lower mileage than her one and she has done test drive, it is also a petrol instead of a diesel (she has had a couple of diesel cars that have gone wrong over last few years). Am keeping my fingers crossed that this one will be better, she just needs it to last 2-3 years until she has paid off IVA and then she should hopefully be in a position to get a newer one if she needs to.
  Am quite relieved she has sorted things out as my worry about offering to get the car on finance for her was having to find the money to make the repayments if she found she couldn't afford to in a few months time. Thanks for your advice and fingers crossed this one will be ok!
• I've also read threads in the past of iva'ers getting finance to buy a newish car, moneybarn rings a bell.
  We approached our ip about a car swap to which they gave us the run around for a week building our hopes up they'd allow it and then pulled the plug preaching the t&c's of the iva agreement, even though we'd previously agreed we wouldn't be breaking them as we weren't gaining new credit, just transferring it from one car to another.
  Whilst we respect their decision, we were just frustrated we'd asked, advised we could enquire about it, had everyone on board then having to disappoint everyone.
• I'm currently in the process of applying for an IVA & need a car for work now. I applied for a Personal Contract Purchase & was refused credit. My mum has agreed to put the finance in her name but will the IVA except this. The payments for the finance will be coming out of my account & I have already told the IVA company that this is one of my monthly commitments. Will they ask to see copies of the finance agreement does anyone know? I also wanted to know if I had any other bank accounts can the IVA trace this? If I recurve bonus at work do I tell them about this straight away & will they declare larger payments or just take 50% of the bonus? Hope someone can help ASAP, thanks in advance!
• At this stage in the IVA process all these questions should have been answered for you and discussed in detail before you decide if an IVA is right for you.
  Some IVA companies are now requesting credit checks to help them identify accounts with possible PPI so your additional accounts may be discovered but if you have nothing to hide you have nothing to worry about?
  I have seen IVAs with the car arrangement that you describe but make sure that your chosen IP will allow this arrangement.
  Overtime, bonuses, commission or similar payments
  Where at any time during thearrangement you receive any overtime, bonus or commission payment from youremployer which is not included in the original surplus income calculation, andif this sum exceeds 10% of your normal take home pay then you shall disclosethe receipt of such monies to the Joint Supervisors within 14 days of receiptand pay 50% of the amount over and above the 10% to the Joint Supervisors, suchpayment to be made within 14 days of disclosure to the Joint Supervisors. Routine overtime allowed for in your incomecalculation is not included and this is in addition to your obligation toprovide copies of your payslips to the Joint Supervisors on a quarterly basisand details of your income and expenditure to your Joint Supervisors on anannual basis, and to make any increased contributions arising from that review.
  Failure to discloseexceptional overtime, bonus or similar to the Joint Supervisors will be consideredto be a breach of the terms of the arrangement and will be notified tocreditors in the next annual report with proposals of how the breach is to berectified. You will be allowed howeveran extension to the term of the arrangement to enable you to repay any arrearsof exceptional income to a maximum of 6 months, without the requirement of myJoint Supervisors to convene a meeting(s) of creditors.
• Yes it will show on your p60 at annual review
• When in an IVA we had a car on finance. The car became unreliable and we contacted the IP to discuss replacement. They advised us we could replace it as long as the monthly repayments didn't grossly increase etc. We couldn't swap a fiesta for a discovery etc. We then googled a garage that did guaranteed finance. So they financed themselves rather than using a financing company. We got a new car fine - we did have to pay the first months payment in advance and the IVA gave us a months payment break to cover this. Our old car was used as deposit. It was really quite simple for us. It is worth asking her IP for advise. At the end of the day if she doesn't go to work as car poop then she wont be paid, IVA fails, they really don't want that so ask for help.
• When my partner was in an IVA he needed a more suitable car as we moved to the city and his old car was quite large/powerful, really not good for city living! We went to Toyota and they gave us their 0% finance deal on a brand new little tiny city car. I think the IVA agreed as the total cost - car+insurance (it's car-tax free and congestion charge free) was less than his previous insurance on the gas guzzler!
  We didn't think they'd let him have the finance, and were going to do it in my name, as I have good credit, but they said they were happy to see if it would go through, and it did so it's not impossible to do! Although I appreciate not everyone can 'downgrade' their car in such a way, if they already own a small run-around like we now do. It really did represent a significant saving to us, moving to such a small/cheap car.
• They do check extra income, at our review we need to send 3 months pay slips, 3 months bank statement and p 60! Best to declare and not get in trouble!
• Just because you send in your payslips doesnt mean they actually get checked, there are now more people in iva's and the ip's are probably very very busy, i would think if you keep your nose clean dont cause trouble, accept the ppi thing and keep your payments up, but pay a decent portion of overtime over i doubt that an indepth check would be carried out, as thankfully there are lots of people who think they have a god given right to an iva and want to pay as little back as possible coming up with all sorts of excuses for not paying ppi back which is taking all the time of the ip's up. Maybe
• i am having the same problem my wife and i have a joint IVA and she had a bad fall about a year ago leaving her with serious mobility issues . she has just been awarded both standard p.i.p benefits which does not enable her to get a car but the car she has is no longer suitable for her as she cannot use the clutch correctly so needs an automatic she gets a total of Ј304 a month from this benefit and we both still work so the IP has agreed in principle to allow us to get a car on finance . and keep the rest as various modifications have to be done on the house , this seems an impossible task as no one will accept an application due to us being on an IVA the problem is her contract of employment states she has to make regular trips to do banking and attend meetings using her own transport and although the company are really good about her mobility issues these two issues are a necessity and if she is not able to perform her duties she risks losing her job , affecting her ability to keep up the IVA payments WHAT A MESS . so if you do find a solution please she it as we are at our wits end