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Can I get car finance with an IVA?

Being in an IVA doesn’t mean that you cannot get approved for car finance; it just means there are a few more steps to consider.

We’ve explored what being in an IVA means and how it can affect your ability to be approved for finance.

image of car and call to action to apply for car finance

What is an IVA?

An individual voluntary arrangement, more commonly known as an IVA, is a legally binding agreement between you and your creditors to pay back your debts over a set period of time, at an amount that you can afford. This can be in the form of a one-off payment, known as a lump sum IVA, or it could be spread over a longer period (such as a number of years). If you agree to a repayment plan, it should be based on an amount that you can reasonably afford that all of your creditors have to agree on.

Because your creditors agree to an IVA, it means they won’t chase you about repaying debt while you’re in the IVA, and you only repay while the IVA is in place.

Getting permission from your insolvency practitioner

Because an individual voluntary arrangement is legally binding (unlike a DMP, which is an informal agreement), you’ll need to get permission from your insolvency practitioner to enter any new IVA car finance or credit agreements – including PCP bad credit options or HP finance from Zuto. Upon applying, we’ll request that you provide evidence of approval.

Can I get car finance with an IVA?

If you are currently in an IVA, car finance applications can be difficult. However, it’s not impossible, and Zuto work with specialist lenders who help customers get car finance with defaults and bad credit.

We’d recommend applying for finance online, which won’t impact your credit score. If accepted, one of our specialist team will give you a call and explain any next steps, such as which IVA finance documents the lender requires. If you’re not sure about the terms of your IVA, speak to your insolvency practitioner, but if you want to know more about how we help people with an IVA to get car finance, get in touch with our experts. We’ve got years of experience helping people get car finance, so we might be able to help you, too.


Applying for car finance with an IVA doesn’t impact your credit score. If your debt advisor or practitioner has approved new credit, get in touch with our team to discuss the best type of finance for your circumstances.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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