Another Car Question...

AAW_2

I'm a little confuse about what will happen with my car when I go bankrupt. I have already convincing myself that i'll lose it so not to be disappointed if it does happen, I know people are saying that if you NEED it for work then the OR will usually let you keep it. I don't actually require a car to do my work but do need it to get there. The reason being that the rented accomodation i will be moving to will be about 4-5 miles from my place of work and my daughters school who i pick up a couple of times a week.
I have looked into buses but as I work unsociable hours the buses do not start until after I need to be at work one week and they finish before I finish work the next (need to leave at 5.15AM one week and leave at 10.05PM the next)
Taxis will cost approx £10 per day one way and then bus fairs the other way.

Does this seem like a reasonable reason to keep my car?

My car is also worth approx £2000 - £2,500, so I'm guessing thats too much of an asset, if they make me get rid of it are they likely to let me replace it?
I still owe £5000 to the finance company but looking through the contract its not on HP but a fixed sum loan???????????

I've also read a lot of times something about making an offer on the vehicle if they do want to take it, how does this work?

I'd like to say a big thank you to everyone who has helped me so far, its certainly helping me feel better about my situation but still am only managing to get a few hours sleep per night.

I have so many questions (currently on hold to the NDL ........again LOL)

Queen

Hi if you need a car to get to and from work then this should be exempt, check the value on parkers guide this is what they tend to use, we went BR in Nov like yourself worried about the car Auto trader stated about £3,500 to convinced ourselves that we would lose this but on parkers guide it was valued at £2150 all they asked was do we need car to get to and from work answered yes and OR said car exempt did not have to prove bus time tables etc

fiveyearplan

If your car is on HP then it belongs to the finance company so it isn't an asset. The OR will have no interest in it. You just need to prove that you need it so you can list your payment on the forms.

It is in the best interest of the finance company to let you keep paying as they would get nowhere near the £5,000 owed on it if they were to sell it at auction.

AAW_2

fiveyearplan wrote: »

If your car is on HP then it belongs to the finance company so it isn't an asset. The OR will have no interest in it. You just need to prove that you need it so you can list your payment on the forms.

It is in the best interest of the finance company to let you keep paying as they would get nowhere near the £5,000 owed on it if they were to sell it at auction.

The agreement says fixed sum loan, it doesn't state anywhere that its HP.
Thanks for the quick response.

fiveyearplan

Oh, sorry I didn't read that bit. In that case it should be included in your bankruptcy. I would double check that the car cannot be repossessed if you fail to make payments - read all the fine print.

AAW_2

Queen wrote: »

Hi if you need a car to get to and from work then this should be exempt, check the value on parkers guide this is what they tend to use, we went BR in Nov like yourself worried about the car Auto trader stated about £3,500 to convinced ourselves that we would lose this but on parkers guide it was valued at £2150 all they asked was do we need car to get to and from work answered yes and OR said car exempt did not have to prove bus time tables etc

I tried using the Parkers guide but they wanted payment to put the correct details in (not something I can afford) They listed my car with 60,000 miles and the results were £2,200 for private poor condition and £3,500 for private in excellent condition. Mine is average condition with 82,000 miles.

AAW_2

Does anyone know about the making an offer if they do want to take it?

MercMan

Try a price from this site. Is closer to the prices that the motor trade use then Parkers (which is a joke IMHO). I work in the trade BTW and have a good idea what vehicles are worth. The OR auction them AFAIK and therefore will never reach the Parkers price anyway. Has anyone challenged a OR over car values?

http://www.wisebuyers.co.uk/motoring/used-car-prices/

AAW_2

MercMan wrote: »

Try a price from this site. Is closer to the prices that the motor trade use then Parkers (which is a joke IMHO). I work in the trade BTW and have a good idea what vehicles are worth. The OR auction them AFAIK and therefore will never reach the Parkers price anyway. Has anyone challenged a OR over car values?

http://www.wisebuyers.co.uk/motoring/used-car-prices/

Thanks for the link mate.

Brought the value up at £2,396

MercMan

Sounds about right. Good luck with the OR.

My high mileage Mondeo comes in at about £2K on that site and about £3K on Parkers. I think Parkers use the retail price to the punters not the price actually paid which in today's climate is much less. For example we are knocking out new cars and vans with about £8K off the list price just to move them!