DRO Car Valuation

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  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    Probably worth quoting the latest guidance as it has changed slightly
    Valuations of cars, taking into consideration their age, mileage and condition, can be obtained using any of these websites.

    Parkers Guide: https://www.parkers.co.uk/cars/prices/
    Auto trader: https://www.autotrader.co.uk/car-valuation
    Glass: http://www.glass.co.uk/ , which garages use to check valuations for second hand cars. Like the Auto Trader site, it requires you to sign in, using an email address, but the service is free.

    Please note that you should take the debtor’s description as to the condition of the vehicle when deciding which value to use from the guide e.g. Private Good or Private Poor.

    This website should be used to verify the debtor’s valuation of their car prior to entering the value of the vehicle on the application form.

    It should be noted that the Parkers website only provides free valuations for cars registered from 2006/55 onwards and can also be adjusted for mileage and optional extras for a small charge.

    Therefore, in the case of older cars, an intermediary is permitted to accept the debtor’s own valuation for the purposes of the application. However, the debtor should be made aware that the Official Receiver may make enquires as to how the valuation was arrived at, and if the Official Receiver determines that a deliberate undervaluing has taken place this may result in the revocation of the DRO and criminal or civil sanctions.

    Care should also be taken in relation to classic cars. For example, vintage Rolls Royce and MG classic cars will usually be worth considerably more than £1,000. An intermediary may also in these circumstances accept the integrity of a debtor who provides the valuation of a classic car and should advise of the £1000 exemption limit accordingly.

    However, again the intermediary should warn the debtor of the possible consequences resulting from the provision of data that is subsequently found to be incorrect (revocation of the DRO, and/or civil and criminal sanctions
  • wba31
    wba31 Posts: 2,189 Forumite
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    loskie wrote: »
    If they use Parkers guide they are obviously ignorant of car values. But as what I imagine a public sector organisation then that's no surprise.

    Almost as ignorant as WBAC who try to buy peoples cars as cheap as possible to sell for a profit.

    Our opinions on who the Insolvency Service use is irrelevant, they set the rules and give guidance on how to work with them. That forms the basis of advice given above
  • wba31
    wba31 Posts: 2,189 Forumite
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    fatbelly wrote: »
    Probably worth quoting the latest guidance as it has changed slightly

    In the interest of research, I have tested Parkers, AutoTrader, Glass and WBAC for comparison, using my own vehicle (58 reg Honda Civic 2.2ctdi EX)

    Parkers - £3480 - £4265 (average mileage 80k)
    Glass £3530 - £4660
    Autotrader - £4500 (this was similar age cars with similar mileage (130k)
    WBAC - £3095

    Parkers comes in with the lowest value of the 3 suggested, WBAC undercuts by £400, but im sure if i actually tried to sell the car to them they would take more off for stonechipped bonnet etc

    I will test again with Mrs WBA's car...
  • loskie
    loskie Posts: 1,761 Forumite
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    why is it bad that WBAC want to make a profit? Why shouldn't they?
  • wba31
    wba31 Posts: 2,189 Forumite
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    loskie wrote: »
    why is it bad that WBAC want to make a profit? Why shouldn't they?

    I don't think it's bad that they're out to make a profit, it's bad that they are seen as reputable valuers of cars for insolvency cases
  • loskie
    loskie Posts: 1,761 Forumite
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    yes but the car's value is what it sells to to the trade, not a retail sale.
  • wba31
    wba31 Posts: 2,189 Forumite
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    loskie wrote: »
    yes but the car's value is what it sells to to the trade, not a retail sale.

    However, like i said - not in the eyes of the DRO Unit though, and in this case they are the ones that have overall say.
    If you are an intermediary and want to chuck WBAC valuations at the DRO Unit then good luck to you, but your clients will soon see their DRO's revoked and lose their £90 fees.
    I have been working on DRO's since their inception in 2009 and I'm sure Fatbelly has for a similar time, and our advice is based on the guidance notes released by the Insolvency Service, whether we agree with them or not.

    But all that being said, WBAC valuations are not accurate. If I were to sell my car tomorrow i would value it as i did on Parkers, Auto Trader and Glass, and get that amount for the car. (i did when i sold a car back in 2010). you want a quick sale then use WBAC, but in a valuation discussion its a pointless reference
  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    I agree with all that. Just did a check on my car, and it is worth £3500 in a private sale (obviously couldn't get a DRO on this). Glass's says I would get £2000 - £2800 as a trade-in. WBAC would offer me £1730, or about half of the real value.

    I think the DRO Unit are correct to exclude them as a valuation tool.
  • Gemmam
    Gemmam Posts: 1 Newbie
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    I have recently just sent all my information off to the DRO and they rang me & told me that my car was worth £1090 on the parkers website. The millage on the car is 67000. I have paid the £3 fee to get a better idea on what my car is worth its come back £1290. I have recieved all my information back with a 'top of the que letter' for when my car drops in value, does anybody know how fast a car drops in value on parkers??
    Also is it worth going into car dealers & asking them to give me a written valuation of the car and send that off instead of waiting for the parkers website to drop my car in value.

    Thanks
  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    Gemmam wrote: »
    I have recently just sent all my information off to the DRO and they rang me & told me that my car was worth £1090 on the parkers website. The millage on the car is 67000. I have paid the £3 fee to get a better idea on what my car is worth its come back £1290. I have recieved all my information back with a 'top of the que letter' for when my car drops in value, does anybody know how fast a car drops in value on parkers??
    Also is it worth going into car dealers & asking them to give me a written valuation of the car and send that off instead of waiting for the parkers website to drop my car in value.

    Thanks

    Used Car prices drop around 30% per year. So you could wait a bit - on their valuation it might dip below 1k in a couple of months.

    Alternatively, yes - you can go into a car dealer & asking them to give you a written valuation of the car and send that off instead of waiting - as long as their valuation is less than 1k
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