Can I take out finance for a new vehicle whilst on an IVA ?

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Hi Scott,

I'm checking with the IVA supervisory team now and should have an answer for you tomorrow morning.

Thank you for your patience

I'm expecting one of our Insolvency Practitioners to answer this soon - but in the meantime it would help to know whether you are a minicab or licenced cab driver and whether you are buying a specialised taxi vehicle or an ordinary car.

Scott,

Firstly you need to check with your Supervisor whether you are allowed under the terms of the IVA that you are able to take any additional credit.

Secondly if the Supervisor allows you to take finance then you will have to apply for this, within the application you will most likely have to declare that you are subject to an IVA this would also appear on any credit check that may be preformed. Depending on the whom you obtain finance from may or may not accept you as a suitable candidate for finance and the ultimate decision to lend will rest with them.

Thirdly depending on the type of taxi you operate, if this is a black cab or mini cab, you may be able to obtain commercial finance on a black cab but not on a mini cab.

Fourthly if you are a self employed taxi driver you may be able to hire a taxi from the taxi company who supplies you with the radio and pay an increased rental to them.

Fifthly if you are not eligible for credit then if someone is able to be a guarantor for you or some else takes the vehicle on credit and you pay them back out of earnings. I must emphasise that you should still get permission from your Supervisor before taking this option.

Hope this helps
Steven

I have spoken to the Supervisory team and they agree with what Steven has already said. Obtaining a vehicle on finance will have to be sanctioned by the Supervisor of your IVA so I would strongly suggest that you give us a call on 0800 019 2095 to discuss in more detail.

It’s unusual to obtain a vehicle on finance after entering an IVA and it will be very difficult for you to be accepted for finance due to the IVA being recorded on your credit file. If the finance payments impact your ability to maintain the payments to your arrangement, it may even jeopardise your IVA.

For anybody else reading this who could be in a similar position it would depend on the terms of the IVA, it may be that you have a non protocol IVA, and there may be provisions in your proposal to suggest that you may be able to obtain vehicle on finance due to it being your main source of income and the taxi would have to be highly maintained or of a certain aged vehicle to fit standards.