IVA Car Finance: How to Get a Car on Finance During or After an IVA

Updated November 2026 by the Get A Better Car finance team (FCA No 713342)

Can you get car finance with an IVA? Yes, it’s often possible. If your IVA is still running, you’ll need written permission from your IVA supervisor (your insolvency practitioner) before taking on credit of more than £500, and a specialist bad credit lender to approve you. Once your IVA has finished, you don’t need anyone’s permission, and your chances improve the longer it’s been.

Can I get car finance while I’m in an IVA?

You can, but there’s one rule you can’t skip. The standard IVA terms say you must not take on credit of more than £500 without the prior written approval of your supervisor. Car finance is almost always more than £500, so you need that permission in writing before you sign a finance agreement. Taking out credit without it is a breach of your IVA and could cause it to fail.

Your supervisor will usually want to know:

• why you need the car, for example getting to work, school runs or caring for someone;
• how much the monthly payment will be, and that you can afford it without reducing your IVA payments;
• what the car is and roughly what it costs.

Supervisors are generally more open to a sensible, affordable car you need for work than to a big monthly payment, so a realistic budget makes a yes much more likely.

Which car finance companies accept an IVA?

Mainstream lenders usually decline anyone in an IVA, but some specialist bad credit lenders will consider you. First Response Finance and Moneybarn, for example, both say on their own websites that they can consider applicants in an IVA, as long as you have your insolvency practitioner’s permission.

Rather than applying to lenders one by one (and risking a string of declines), apply once with a specialist dealer. We work with a panel of bad credit lenders and know which ones look at IVA applications, so we can send yours to the right place. Every eligibility check is a soft search, so it won’t affect your credit score.

How to apply for car finance in an IVA, step by step

1. Speak to your IVA supervisor. Tell them you need a car and why. Ask what they’ll need from you to give written permission.
2. Check your eligibility. Apply with a soft search. If a lender can help, we’ll tell you the car, the monthly payment and the lender’s conditions, so you can show your supervisor exact figures rather than guesses.
3. Get the permission in writing. The lender will need a copy of your supervisor’s written consent before the agreement can be signed.
4. Send your documents. Usually your driving licence, recent payslips or bank statements, and sometimes proof of address.
5. Sign and collect. Once everything’s approved, you sign the agreement and collect the car, or we deliver it free within 100 miles.

What helps your chances

• Keep your IVA payments up to date. Missed IVA payments are a red flag for lenders and your supervisor.
• Show stable income. Lenders look at affordability first, so regular income matters more than your credit score.
• Register to vote at your current address.
• Keep the car sensible. A lower monthly payment is easier for a lender to approve and for your supervisor to agree to.
• Put down a deposit if you can. It isn’t always needed, but it lowers the amount you borrow. See no deposit car finance with bad credit.
• Don’t apply all over the place. Several declines in a short time make the next lender more cautious.

Car finance after your IVA has finished

Once your IVA is complete, you’ll get a completion certificate from your supervisor. Keep it, because lenders may ask to see it. After that:

• You no longer need anyone’s permission to take out credit.
• Your IVA is removed from the public Individual Insolvency Register 3 months after it ends.
• It stays on your credit file for 6 years from the date it started. As most IVAs last 5 or 6 years, it often drops off your file soon after it finishes.

Check your credit file shows the debts that were in your IVA as included in the arrangement or settled, not still outstanding. If anything’s wrong, ask the credit reference agency to correct it before you apply.

If your IVA failed rather than completed, it’s harder, but not always impossible. Specialist lenders will want to see that things are stable now.

IVAs, CCJs and defaults

Debts included in your IVA, including any defaults or CCJs, are dealt with by the arrangement, so creditors shouldn’t chase them while it runs. They’ll still show on your credit file until they drop off, usually 6 years after the default or judgment date. Specialist lenders are used to seeing a mix of IVAs, CCJs and defaults, and they care most about how you’ve managed your money recently, especially the last 12 months. See our guides to car finance with a CCJ and car finance on a debt management plan.

If your income is mainly benefits, see our guide to car finance on benefits.

A real example

Stacey from Derby had been turned down for car finance for months because she was in an IVA. We found a lender willing to approve her, at a better rate than she expected, and once her IVA company gave permission she collected her Mercedes A Class from us. Read more about car finance in Derby.

IVA car finance: frequently asked questions

Can I get car finance in an IVA without telling my supervisor?

No. Taking on credit of more than £500 without your supervisor’s written approval breaks the terms of your IVA, and the lender will need to see that permission anyway.

Will my supervisor say yes?

There’s no guarantee, but supervisors often agree when the car is genuinely needed, the payment is affordable, and your IVA payments won’t be affected.

How long after an IVA can I get car finance?

You can apply as soon as it has finished, with no permission needed. Your options usually widen once it drops off your credit file, 6 years after it started.

Will applying affect my credit score?

Checking your eligibility with us is a soft search, so it won’t affect your credit score.

Do I need a deposit?

Not always. Some lenders offer no deposit options, subject to status, but a deposit can help both the approval and your supervisor’s decision.

Local to Nottingham, Derby or Leicester?

We’re a bad credit car finance specialist dealer on the A52 at Bramcote, between Nottingham and Derby. We regularly help customers in an IVA, and we deliver free within 100 miles, so you can sort everything from home.

Check your eligibility

Fill in the application below. It’s a soft search only, with no impact on your credit rating. When we contact you, let us know you’re in an IVA (or that it’s finished) so we can send your application to the right lenders.

Get A Better Car is a trading name of Twiggco Ltd, authorised and regulated by the Financial Conduct Authority (FCA No 713342). We are a credit broker, not a lender. Finance is subject to status and affordability; applicants must be 18 or over. This guide is general information, not debt advice. For free debt advice, contact MoneyHelper or StepChange.