Autedia is a credit broker, not a lender. We partner with CarFinance 247 Limited, a credit broker (not a lender), to help find you the best car finance deal for your circumstances from their wide panel of lenders.

Representative example: borrowing £6,500 over 5 years with a representative APR of 29.9%, an annual interest rate of 29.9% (Fixed) and a deposit of £0.00, the amount payable would be £196.34 per month, with a total cost of credit of £5,280.14 and a total amount payable of £11,780.14.

How car finance works through Autedia

Get a quote

Complete our short application form and find out if you’re eligible for a car loan in minutes.

Meet your account manager

Here to help every step of the way – look out for their call! You can chat over text or WhatsApp too.

Choose a car

Whether you’re looking for a hot hatch or a chic supermini, explore over 100k used cars in the car search or find your dream wheels from any reputable UK dealer.

Hit the road!

You set the pace; tell us exactly what you’re looking for and we’ll handle the rest. You could be driving away in days!

What is an IVA?

Are you looking to get car finance with an IVA? Let’s find out how you might secure a deal.

An IVA (Individual Voluntary Agreement) is a formal agreement to repay your creditors at an amount you can afford. With an IVA, you can spread payments over an extended period, usually five or six years.

IVAs can be a good solution if you’re in debt. You could write off any unaffordable debt and start rebuilding your credit score.

Can I get car finance with bad credit history while in an IVA? Read on to see how being in an IVA should help your chances by showing commitment to resolving credit issues.

Why should you choose Autedia for your car finance?

Large panel of lenders

We’ll look to find you the best available deal from a wide panel of lenders.

No effect on credit score

Get a no-obligation quote that won’t affect your credit score unless you choose to proceed.

Total flexibility

HP, PCP, no deposit? We work with lenders that can offer it all – and we consider all circumstances.

Access to more than 100,000 cars

Get access to a car search with over 100k quality used cars stocked by trusted dealers all over the UK.

Dedicated account manager

Get support from a dedicated account manager who'll guide you through the process, take care of all the checks, and handle the paperwork.

How does an IVA work?

It starts with you engaging an Insolvency Practitioner (IP) to manage your IVA with your creditors. You’ll have to pay a service fee to your IP.

The IP’s first task is that Creditors equaling 75% of the total amount you owe must concur for the IVA to happen. The IP also calculates the amount you can repay and the duration of the IVA.

You must give information about your assets, income, debts and creditors. You’ll agree to pay monthly to the insolvency practitioner who distributes the money between your creditors.

Car Finance Calculator

5 years
Total cost of credit2,125.46
Total repayment8,625.46
60 monthly
payments of

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 29.9%, an annual interest rate of 29.9% (Fixed) and a deposit of £0.00, the amount payable would be £196.34 per month, with a total cost of credit of £5,280.14 and a total amount payable of £11,780.14.

Can I get car finance if I am in an IVA?

Can you get car finance with bad credit history if you are in an IVA?

One of the biggest worries for anyone seeking car finance with bad credit is how their credit score and current finance agreements may affect they’re obtaining a car finance loan. Concerns only amplify if they are currently in an IVA.

If you are in an IVA, asking for further finance, such as a car finance loan, can seem challenging. Many people in an IVA will think they can’t possibly get a car finance agreement. However, that need not be the case.

Some lenders offer car finance when you are in an IVA, even with a bad credit score. If you are in an IVA, some lenders will consider this a positive they see you are responsible and able to pay off your debts. Making regular payments shows discipline and responsibility.

Does an IVA affect your credit score?

An IVA is recorded on your credit report for six years, starting when it was approved. Pay the IVA off early; the record won’t be removed but shown as ‘complete’. After six years, your IVA should disappear from your credit file and boost your credit score.

Be aware that any debts in your IVA may also be separate entries on your report.

Can I keep my car on finance in an IVA?

If you are in an IVA, you can usually keep your car on finance. Still, it can depend on the circumstances. You’ll need the permission of your IVA Supervisor. If your vehicle is crucial for your job, you’ll likely be able to keep the vehicle and car finance agreement.

Do I need permission to take out a car finance agreement in an IVA?

Yes. In an IVA and want to take out a car finance agreement? You’ll require a letter from the IVA  Insolvency Practitioner permitting you to enter into the car finance agreement and confirming the deal will not put you at additional financial risk.

The car finance company will not offer you car finance with an IVA without permission in writing from your Insolvency Practitioner.

Rates from 19.9% APR. Representative APR 29.9%

How do I get permission to take out a car finance agreement?

You’ll need to convince your IP to give their permission and provide a confirmation letter if you want to take on a new car finance agreement whilst in an IVA.

The IP will have two points of concern you need to prove: can you afford the car finance, and do you need the vehicle?

How do you prove affordability?

Can you afford to enter into a car finance contract taking on the additional finance while continuing to make your IVA payments and current debts outside the IVA?

You’ll need to do an affordability check (your income and expenses) – the IP will be ahead of them. Why not look at our car finance calculator to clarify what monthly payments you can afford?

Proving you need the vehicle

The primary task of the IP is to ensure you can uphold payments under the IVA – not to get you into a newer car. So, what is the best way of proving you need a car finance agreement?

Honesty is crucial if you want your IP to permit you to take out car finance whilst in an IVA. These might focus on these scenarios:

  • Do you need a car to get to work?
  • Is your current vehicle too old and uneconomical?
  • Do you currently use public transport – would a car work out cheaper and save you money?


The request of car finance for a reliable vehicle in an IVA is not unreasonable. Your IP appreciates the importance of you being able to get to work if you are in an IVA.

Get the affordability right, and most likely, you’ll get the permission and confirmation letter you’ll need to get car finance with an IVA.

What happens when you receive permission from your IP?

After receiving your IP’s confirmation letter, you can apply for car finance. The lender must see the permission letter stating that entering a new financial agreement will not put you at further financial risk.

Next, assuming you apply for a car loan and receive an offer from the lender. Once your IP ensures you can still afford your IVA commitments and the additional car finance payments, you’re ready to go.

How do I find a lender to give car finance with an IVA?

Ensure when you apply, it is with a lender who can offer car finance with an IVA. A specialist lender offering car finance with an IVA understands your circumstances of living with an IVA. You might still get refused, but it won’t be simply because you have an IVA.

You’ll find most lenders will not offer car finance with an IVA. They’ll see someone being in an IVA as financially unreliable. With a simple check on your credit report, they’ll see your IVA and decline you.

Rates from 19.9% APR. Representative APR 29.9%

Am I eligible for an IVA?

IVAs are available for someone owing £6,000 or over unsecured debt such as a credit card. Car finance is not an unsecured debt.

The benefit of an IVA is you get assigned an Insolvency Practitioner who will manage all your debts in the IVA on your behalf – usually over five or six years.

In an IVA, you no longer make individual payments to your creditors. You send a single agreed monthly amount to your IP, and they are responsible for repaying your creditors.

My IVA has ended, are my chances of getting car finance going to improve?

When your IVA has finished, you’ll hopefully be debt free. However, you may still experience some issues applying for credit.

  • You’ll remain on the Insolvency Register for three months after you complete the IVA.
  • The IVA remains on your credit report for six years after it has ended. Lenders will continue to see the IVA when they search your credit report.

Whilst your credit won’t improve overnight, typically, you’ll find lenders more receptive to giving you credit once you have completed the IVA.

You can do many things to help boost your credit score. Demonstrating financial responsibility will help mitigate the effect your past IVA has on your poor credit history.

Rates from 19.9% APR. Representative APR 29.9%

What are car finance options available to me during my IVA?

HP (Hire Purchase) – You make equal monthly repayments, typically over three to five years. On the final payment, you’ll own the car outright. You may need to pay a deposit if you have bad credit, such as in an IVA.

PCP (Personal Contract Purchase) – You won’t own the car at the end of the contract. You must pay for the balloon to keep or return the vehicle. However, monthly payments are lower than an HP but not as easy to obtain in an IVA.

PL (Personal Loan) – A personal loan differs from the above hire purchase options. You borrow the money from a bank, pay the dealer and straightaway own the vehicle outright. Unfortunately, with an IVA, you are extremely unlikely to get an unsecured loan.


Deciding which type of car finance is best for you is not straightforward. However, with an IVA and bad credit, you’ll more likely get an offer for HP than PCP. Pity because the monthly repayments on a PCP are significantly less.

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