Getting a Car Loan with Part IX Agreement

By Angela Monroe - August 10, 2018

Can you get a car loan with a Part IX agreement? It is hard to imagine your daily life without your car. Especially if you drive regularly. At Loans for People With Bad Credit, we want to help you avoid missing out on the car that you want and need simply because of your bad credit. Whatever your credit situation, speak to us to find out how we can help with bad credit car loans.

What is a Part IX agreement?

Often seen as an alternative to full bankruptcy,  it is an agreement is between you (the borrower) and your creditors when you are unable to make repayments. The agreement gets its name as it is Part 9 of the Bankruptcy Act 1966.

Your creditor or lender will agree with you an amount of money that you can realistically afford to pay back. Interest and fees are usually frozen during this period.

A Part IX debt agreement will be displayed on your credit report and will affect your car loan applications in the future.

Is this agreement the same as Bankruptcy?

No, the agreement is initiated when you submit a proposal to your lender. You can not be forced into this agreement as you can sometimes be with bankruptcy.

With a Part IX debt agreement, lenders will often accept the amount of debt that is agreed to be paid back. This is different from bankruptcy where you are often chased for the entirety of your debts.

Can you get a car loan with a Part IX agreement?

Yes, it is still possible to get a car loan with a Part IX agreement.

A Part IX debt agreement will go on your credit history and is likely to affect your credit rating. This means that lenders may be more reluctant to give you a car loan. Or you may receive higher rates to pay back the loan.

Generally, a Part IX debt agreement is made so that you can get back on your feet and seek to pay back everything you can. So, it’s a red flag to some lenders as they will see lending you more money as very high risk.

However, there are many lenders who specialise in people with bad credit. And it’s certainly possible to find lenders who will offer you a car loan with a Part IX agreement.

Are there other options?

One option which is often very effective is to apply for a bad credit car loan once you are discharged from your agreement. By timing your application in this way, you are likely to have more lenders to choose from and possibly better rates available to you.

You can also discuss with us whether there could be alternative ways to get a car loan with bad credit. These can include a variety of options such as getting a co-signer or putting down a larger deposit.

Speak to us to discuss getting a bad credit car loan with a Part IX agreement. With our years of experience and access to a range of lenders, we’ll save you time, money, and stress.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


Matthew Hardgrave

January 11, 2019

Looking at getting a small car loan but am under a part XI agreement. What are my options. I need about $8000 I can put a $2000 deposit in. Please respond via email. Thanks

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