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It’s important to understand that having a less-than-perfect credit history doesn’t necessarily mean you’re ineligible for car finance.

Obtaining car finance can be a daunting task, especially if you have a history of financial difficulties such as defaults, Individual Voluntary Arrangements (IVAs), or County Court Judgments (CCJs). However, IVA car finance is available if you know where to look – and our team of ninjas know where to look!

The first step to finding car finance in this situation is to understand what IVAs, CCJs and defaults are.

Representative Example: Borrow £7,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £8,247.83. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.



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Defaults are formal notices issued by lenders when a borrower fails to make repayments on a loan or credit agreement.

IVAs, on the other hand, are legally binding agreements between an individual and their creditors to repay debts over an extended period, often with reduced monthly payments. CCJs are court-ordered judgments against an individual who has failed to make repayments.

Having defaults, IVAs, or CCJs on your credit report can make traditional car financing routes more challenging. Some lenders may be hesitant to extend credit to individuals with defaults, IVAs and CCJs as they can be perceived as higher risk.

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However, there are some car finance companies that specialise in offering loans to people with less-than-perfect credit histories.

These lenders are more likely to look at all aspects of your financial situation, such as your current income, employment stability, and ability to make future payments, rather than solely relying on your credit score.

At CarMoney, we will rank lenders that are more likely to approve your application, based on your own individual circumstances.

This can save you a lot of time and effort when looking for IVA car finance.

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Improving your credit score will increase the number of car finance companies that will be happy to lend to you, and improve the terms that they will offer you.

That’s true of everyone, whether you have a spotless credit history or you have CCJs or IVAs. Car finance companies will look more favourable if you take a few steps:

Review Your Credit Report: Obtain a copy of your credit report to ensure all information is accurate. Dispute any discrepancies promptly.

Be Transparent: Provide complete and accurate information to the lender. Being open about your financial history demonstrates responsibility and can build trust.

Prepare a Budget: Calculate your monthly income and expenses to determine how much you can comfortably allocate towards car payments.

Research Lenders: Identify specialised lenders who are known for working with individuals who have defaults, IVAs, or CCJs.

Compare Offers: Obtain quotes from multiple lenders to compare interest rates, terms, and conditions. This allows you to choose the most favourable terms possible.

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While obtaining IVA car finance is possible, the terms are unlikely to be as attractive as other types of finance.

When looking for finance, you should carefully review:

Interest Rates: Given the higher risk associated with lending to individuals with defaults, IVAs, or CCJs, interest rates may be higher compared to those with pristine credit histories.

Deposit: Offering a substantial deposit can demonstrate commitment and reduce the amount you need to finance, potentially improving your chances of approval.

Loan Term: Opting for a shorter loan term can lead to lower overall interest costs, even if the monthly payments are higher.

Repayment Capacity: Be realistic about what you can afford. Ensure that monthly payments fit comfortably within your budget to avoid future financial strain.

Loan Restrictions: Some lenders may impose restrictions on the type, age, or mileage of the vehicle you can finance.

Securing car finance with defaults, IVAs, or CCJs is indeed possible, albeit with a bit of extra effort and diligence. By understanding the challenges, exploring specialised lenders, and making informed decisions, you can take significant steps towards driving the car you need while rebuilding your financial reputation. Remember, responsible financial behaviour moving forward can lead to improved creditworthiness over time.

Get a quote or contact CarMoney today.

Frequently Asked Questions

Can I get car finance with a default?

Yes, getting car finance with a default on your credit report is possible. However, you may have to work harder to find a lender who will approve you for a loan, and the terms you are offered may not be as favourable as someone with a clean credit history.

What is a default, and how does it affect my creditworthiness?

A default is when you fail to pay on a credit agreement, such as a loan or credit card. This means that the lender considers the agreement to be in default. This negative information is reported to credit reference agencies, which can lower your credit score and affect your ability to borrow in the future.

Will my credit score be the only factor considered for car finance with a default?

While your credit score is essential, lenders will also consider other factors when assessing your loan repayment ability. These factors may include your current financial situation, employment stability, income, and the reasons behind your default.

Are there lenders that provide car finance to individuals with defaults?

Yes, some lenders specialise in car financing for people with bad credit. These lenders may offer “bad credit car finance” or “subprime car finance.” Interest rates may be higher with these lenders, and you may need to provide additional documentation to prove your ability to repay.

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CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.