car finance with iva

With the cost of cars continuing to increase, more and more people are turning to car finance with IVA to help them purchase their dream vehicle. But what is IVA and how does it work? This article aims to answer this question, as well as provide an overview of the different types of car finance with IVA and the advantages and disadvantages of each.

What is IVA?

IVA stands for Individual Voluntary Arrangement. It is a legally binding agreement between you and your creditors, allowing you to pay off your debts over a period of time. This type of arrangement is available to anyone who is struggling to keep up with their debt repayments and is able to make regular payments towards their debt. Your creditors will need to agree to IVA terms, which include a reduced repayment plan for the duration of the agreement, as well as a freeze on interest and charges.

Types of Car Finance with IVA

There are two main types of car finance with IVA – secured and unsecured. Secured car finance with IVA requires you to put up some form of security, such as a property or car, in order to take out the loan. This type of finance is usually available at a much lower interest rate than unsecured finance and is often the preferred option of those with bad credit. Unsecured car finance with IVA does not require any form of security and is available to those with all credit histories. However, the interest rates can be quite high.

Advantages of Car Finance with IVA

The main advantage of car finance with IVA is that it gives you the ability to spread the cost of your car purchase over a longer period of time. This makes it easier to budget for and can help you to avoid paying a large lump sum upfront. It also allows you to keep your credit rating intact, as any missed payments will be registered with the IVA provider rather than your credit rating agency.

Disadvantages of Car Finance with IVA

The main disadvantage of car finance with IVA is that the interest rates can be quite high. This means that you could end up paying more for your car than if you were to take out a regular loan. Additionally, if you miss any repayments, you could be in breach of the terms of your IVA agreement, which could have serious consequences.

Where to Find Car Finance with IVA

If you are looking for car finance with IVA, there are a number of different providers that you can choose from. It is important to shop around and compare the different options to ensure that you get the best deal. Look for providers who offer competitive interest rates and flexible repayment terms. It is also worth checking whether the provider offers any additional services, such as free credit reports and advice.

How to Apply for Car Finance with IVA

Applying for car finance with IVA is relatively straightforward. The first step is to find a provider who meets your needs and fill out an application form. You will then need to provide proof of income and provide details of any other debts that you have. Once your application has been approved, you will be provided with a repayment plan and you will need to make regular payments in order to keep up with your agreement.

Conclusion

Car finance with IVA can be a great way to purchase a car without having to pay a large lump sum upfront. However, it is important to understand the advantages and disadvantages of each type of finance before making a decision. Ensure that you shop around for the best deal and that you are aware of any additional charges that may be applicable. With the right provider, car finance with IVA can be a great way to get behind the wheel of your dream car.