Changing your car in an IVA

On the whole, there is no obvious reason for why you could not change your car whilst you are under an IVA - also known as an Individual Voluntary Arrangement. However, most of us use finance companies to purchase new cars and this is where things could become sticky for someone in an IVA.

If you are in an IVA with a car company already, it is not likely that they will lend you more money for a new car. Furthermore, it is very unlikely that any other finance company will lend you the money to purchase a new car in the near future. In fact, you will need to consider living without credit for up to six years.

Simply purchasing a car is not really a problem, but reasonably the creditors could ask how you can possibly afford to purchase a new car when you have stated how much you can afford to pay to them over the period of the IVA. If you sell your current vehicle, it could be reasonable for you to purchase a cheaper car. If you could obtain credit in your partner's name for a new car that you could then jointly repay, that might be a way of managing to get around the credit problem, but this is not always advisable and can sometimes be problematic.

Advise your Insolvency Practitioner that you NEED to purchase a new car and state the reasons; they will then be able to advise you on the possibilities for you in your circumstances. They may allow you to save some of your wages towards the cost of a new car.