OR might say can have cheaper car but mine has to go

MercMan

So_Sad_Angel wrote: »

Hi MercMan

I did suspect that Parkers was higher than auction....is there anywhere online to get a more realistic valuation ?

Ange,
ps ...any idea on 02 Audi A3????

Well our salesman said that if you knock off £1000 on the Parkers price that would be a realistic value. He also said that auction prices have gone through the floor as no one is spending much due to the economic climate. Hence the price he gave for my Mondeo. Think I may have a battle with the OR.

everdecreasingcircles_2

Hi Rach!

Me and hubby just sorted car situation out with our OR so have a bit of upto date experience. I managed to keep my car once a third party had paid the difference between the £2k allowance and what the OR valued the car at. My hubby on the other hand decided to let them take his car and purchase a cheaper replacement. On the day they came to collect his car they actually brought cash which was a bonus as I thought we would have to wait for a chq to clear!
They did use Parkers to value mine at but then I managed to agree a slightly lower price anyway as they have to take their costs into consideration as well.
Hope it works out well for you!

Rach2007_2

Hi everyone

Thanks so much for all your replies, sorry it has taken me so late to reply, could not get back on line till now.

Tigerfeet I asked the CCCS if I could sell my car myself and get a cheaper one within the limits giving the rest to the OR but they advised against it, could be seen as selling assets at less than their value (or something like that!)

Everdecreasing that is interesting that the agent who came to collect your hubby's car gave him cash up front for a cheaper one. That would be ideal.

Car issue is the one thing that's really really concerning me at the moment. If I couldn't get to work I would be truly truly stuck!!

Rach

tigerfeet2006

Eeerrr!! but if you don't sell it for undervalue but for what it is worth on the open market then it is not selling it for undervalue. We've had several members do it. They sold the car, bought a cheaper model and used the rest for BR fees.

blind-as-a-bat_2

MercMan wrote: »

I work in the motor trade and spoke to our salesman today. I told him that the OR uses Parkers Guide and he burst out laughing as the prices quoted are far too high. He said that the true prices are to be found in the CAP book (Current Auction Prices). For example he showed me that my 04 plate Mondeo with 101K on the clock is worth between £1500 and £2000 at auction. So can you appeal against the OR's price? Can you show him the true value?

BTW My ex bought me the car as part of the settlement of my share of the house instead of giving me cash. I do not know where she got it from or if she had a receipt. Even though it registered in my name is the car mine?

Technicaly no, the car owner is the person who bought it, but ownership my be seen to have been transfered due to it being part of a settlement, so it may not be that clear cut in your case im afraid

blind-as-a-bat_2

Rach2007, this is the OR,s tech guide how do deal with Exempt vehicles of excess value, of course you have to get it agreed it is exempt first

31.2.24 Use of discretion

The Official Receiver should use his/her discretion to take action which is practical and expedient but which is also in the interest of the estate and of The Service in keeping administration costs down. The facts should be considered on a case by case basis.


31.2.25 Exempt vehicles of excess value (updated August 2008)

Where an exempt vehicle appears to have a significant value, the official receiver, when acting as trustee, may claim it for the estate if he/she considers that the realisable value of the vehicle exceeds the cost of a reasonable replacement [note 7]. The vehicle must be claimed by notice in writing no later than 42 days after it came to the knowledge of the trustee (in the case of the official receiver, on his/her becoming trustee) [note 8]. Any notice after this time can only be made with the leave of the court. The official receiver should not normally take any steps to claim an exempt vehicle unless the potential net realisation to the estate is at least £500 after taking into account any costs of sale and of a replacement vehicle. A third party contribution equivalent to the net value of the car to the estate may be accepted to avoid the seizure, sale and replacement of the vehicle. This will also need to cover the value of any cherished/personalised registration mark if that is also to be retained by the bankrupt (see paragraph 31.2.25A).

The official receiver will need to consider the nature of the bankrupt’s business in assessing whether a vehicle has excess value since in the past the courts have concluded that a bankrupt could retain a high value vehicle because he/she operated a business which provided chauffeur driven vehicles.



31.2.25A Exempt vehicles with cherished/personalised registration marks (inserted August 2008)

Where an exempt vehicle has a cherished/personalised registration mark, the value of this should also be considered before deciding whether the vehicle is of excess value. The procedure in paragraph 31.2.25 should be followed for claiming the vehicle if the registration mark means that the vehicle is of excess value. If the vehicle in itself is of an acceptable value, then the official receiver could transfer the vehicle back to the bankrupt as a replacement after having dealt with the personalised registration mark. It is possible that the bankrupt may wish to purchase the registration mark with third party funds, and if so the official receiver should consider the offer, see paragraph 31.2.34 for more information. If the vehicle would still be of excessive value without the registration mark, the vehicle and registration mark may either be disposed of together or separately as appropriate.



31.2.26 Provision of a suitable replacement

Where a decision is made to replace an exempt vehicle with a cheaper alternative [note 7] the official receiver should inform the bankrupt of the amount he/she is prepared to make available out of the sale proceeds. The official receiver has discretion as to the amount allowed for the replacement which should be sufficient for the bankrupt to buy a replacement vehicle which is suitable for his/her needs. For consistency between official receiver's offices a guideline maximum figure of £2,000 has been introduced. While official receivers may exceptionally exceed this figure depending on the purpose for which the vehicle is used, it should be adhered to as frequently as possible.

Depending on the circumstances of each case the payment to purchase the replacement vehicle may be made to the bankrupt directly or to the vendor of the vehicle. The most secure way to undertake the purchase is payment direct to the vendor. It is recognised that a bankrupt may be able to obtain a better deal to purchase a vehicle by negotiating a private sale or attending a car auction and in such circumstances immediate access to cash is required. If an allowance from the proceeds of sale is made directly to the bankrupt then the official receiver should request evidence of the purchase of the vehicle within 21 days.

31.2.27 Recording decisions

Any material details, e.g. statements or letters from the bankrupt, notes of telephone calls to or from the bankrupt and a record of the decision reached about the exempt or non exempt status of a vehicle should be recorded on the official receiver’s file. There must be a clear record of the events that occurred so that if difficulties arise later, the papers can be referred to.

Once the official receiver has decided whether the vehicle is exempt, the bankrupt should be notified accordingly [note 9].

Details of the decision to replace the vehicle, any third party offers made (which must be in writing ) and the decision on the offer should be recorded on the case file.

31.2.28 Action by official receiver as receiver and manager regarding exempt property

If a vehicle is considered to be exempt property and it appears likely that an insolvency practitioner will be appointed trustee, the official receiver should allow the bankrupt to keep control of the vehicle, making sure that there is adequate insurance. The official receiver need take no further action pending the appointment of a trustee.

If a vehicle is considered to be exempt property but is of excess value (see paragraph 31.2.25) the bankrupt should only be allowed to keep control and use of it pending a trustee’s appointment if he/she comprehensively insures it, with the official receiver’s interest being noted on the policy, and gives the official receiver a written undertaking that only he/she (the bankrupt) will use it.

Where the vehicle is left with the bankrupt, the official receiver should write to the vehicle’s insurers asking them to note his/her interest and to notify him/her of any activity in relation to the policy. The bankrupt should be notified in writing that he/she cannot validly dispose of property pending the appointment of a trustee [note 10]. He/she should also be informed that although the official receiver has allowed him/her temporarily to retain possession of the vehicle, this in no way binds a subsequent trustee who may take a different view as to whether the vehicle is exempt from vesting or may take a decision to claim it for the estate.

Where proper arrangements cannot, or will not, be made by a bankrupt, the official receiver may take steps to protect a vehicle which is exempt property but which may later be claimed for the estate by a trustee. He/she should arrange for the vehicle to be stored. If the bankrupt makes representations that he/she urgently needs the vehicle, the official receiver should apply to the court for directions, asking for an order enabling the vehicle to be sold on the bankrupt’s behalf and provision of funds made for a cheaper replacement before a trustee is appointed. At this stage the vehicle does not form part of the bankrupt’s estate [note 10] and therefore it cannot simply be disposed of without the sanction of the court.

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part2/31.2.htm

Rach2007_2

Thanks blind-as-a-bat for that link, it was really helpful :T

Tigerfeet I rang up the CCCS again to clarify situation with selling the car. They confirmed that I could indeed sell it, and buy a cheaper one under the £2k threshold. I asked about using some of the proceeds of the sale for BR fees and they confirmed that as with using an overdraft, that I may get a few harsh words but OR would probably turn a blind eye to it .

So that's my new plan. going to get autotrader out in next week or so and try and get the blummin thing sold!

Thanks again!!

Rach