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Hi, I am 4 years into an IVA. Last week, drunk driver came round blind bend on wrong side of the road and hit me head-on. My car is a write-off and I have been offered £3000 as a settlement. My question is - does this have to go into the IVA?

No - it needs to be used to fund the cost of a replacement vehicle. Did you sustain any personal injuries as a result of the crash? If so, any claim you are paid as a result also ought to be exempt from the IVA.

Hope you are OK - what a hideous experience.

Hi Melanie,

Thnak-you for your advice and concern.

No, I luckily didn't get hurt, just a bit shaken up!, so no claims for personal injury. Is it possible to lease a car if you are in an IVA - both from a credit point of view and/or from an IVA point of view?

There is no problem in you taking out a lease, so long as it is with your Supervisor's permission. With £3k available to cover the payments for the last year of your IVA, I cannot see a real issue - and someone posted the other day about a company who offered car leasing to people in IVAs without any up front payments. Perhaps Admin could root out the details for you?

Thanks again Melanie, I would really appreciate it if Admin could find the posts about Car leasing in an IVA.

Admin - Over to you please!!

Try looking at this thread.

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=16047

What a scary experience - I am pleased you are OK!

I don't know if you have considered car auctions, but £3000 couold get you a really nice car - more for your money than showroom prices.

Auctions are a good place for cheap cars, but you have to make sure you know what you are looking for and don't get fobbed off with rubbish.

Very good advice there Kallis, I well remember many years ago buying a Hillman at auction and two days later I was merrily driving it along Chester Road when one of the rear wheels bounced past me down the road!!

Can laugh about it now but it the time it was absolutely terrifying, luckily I wasn't going at any great speed. Taking a mechanic, or someone who does know a lot about cars would be very sound advice.

Regards.

Size 5 that has made me chuckle, but I can imagine how scary it was at the time.

You don't have long to look at them either, and I think once you have won the auction, you have an hour whereby if you find a major fault you can pull out, otherwise, bad luck - it's yours!

Of course the other thing is that a lot of stolen cars get put through auctions as well.

You should have no problems in leasing a car. Google car leasing for people in IVA's. Ask your Supervisor if he/she knows of any leasing companies. You could either use the £3k to pay off your IVA and then your previous monthly contribution can be used in all or part to fund a leased car. Good luck

kallis3 wrote:

Size 5 that has made me chuckle, but I can imagine how scary it was at the time.

You don't have long to look at them either, and I think once you have won the auction, you have an hour whereby if you find a major fault you can pull out, otherwise, bad luck - it's yours!

Of course the other thing is that a lot of stolen cars get put through auctions as well.

I have spent a lot of time in car auctions and got a gem every single time! (which I have sold on at a PROFIT every time after using it)

Of course if you don't know what you are looking for then it is wise to take someone who does with you..but here are a few pointers:

1- you have to pay an indemnity on top of the hammer price which is a guarantee from the auction house that if it has been an undeclared write off or stolen and will refund you.

2- Got to a reputable auction house such as BCA (British Car Auctions)

3- ignore private entries and look only at the cars coming in from the dealers. The majority of the time these will be simply older versions of a car and the previous owner has bought new and traded in. if the dealer can't shift it, it will go to auction.

4 - Go and watch the driver start it up so you can see if it sounds rough or has trouble starting. You can ask the driver to rev the engine, pop the bonnet etc.

5 - Check if the warning lights come on and go out - or stay on!

6 - Check the sound of the exhaust and colour of exhaust isn't blue or white and steamy (signs of oil leak and head gasket)

7 - Ask the driver to check the clutch for you - they are happy to do so!

8 - Check the oil and water levels and make sure there is no cross contamination (i.e lots of mayonaise tpye substance in the oil filler cap)

9- Be wary of cars with their hazards on in the auction hall (if you didn't go and watch them start it up). This generally means they had to jump start it!

10- Look for overspray or mismatched body coloured panels - signs of a bump

11 - Look at the shut gaps (gaps between bonnet and wings, doors etc) are they level? - again this can point to a bump

12- Read the description carefully

13 - Note that the mileage isn't generally warranted

14 - Check in glove box and under seats for service history and other paperwork (unscrupulous dealer may 'hide' it)

That's about it!