Quick car question

L8RED

Good morning all,

We are going to go B/R and sold our car to pay various costs i.e deposit on new house, B/R fee . We were told we could have a car to the value of £2000 so we purchased a car for £1800 from a dealer. The problem is when I have looked at Parkers, it values the car as around £2500. Will this be a problem?

The car is a necessity as my wife is a nurse who works varying shift patterns with little in the way of public transport.

Thanks.

lisamummytoarchieplusbump

is that poor condition on parkers as this is what the ORs normally go by?

L8RED

Hello,

Yes, the £2500 was the lowest value i.e trade in/poor condition.

Thanks.

lisamummytoarchieplusbump

then its just down to the OR really as some people on here have been allowed some havent

lisa

rog2

L8RED wrote: »

We were told we could have a car to the value of £2000 so we purchased a car for £1800 from a dealer. The problem is when I have looked at Parkers, it values the car as around £2500. Will this be a problem?

I don't know who told you that you 'could have a car to the value of £2000' L8, but that is not, strictly speaking, correct. There are no 'hard and fast' rules on cars - only 'guidelines' which, as many on this forum have discovered, tend to be interpreted differently around the Country.
If the car is essential, as it would appear to be, then the OR can decide that the car is necessary and may, indeed, allow you to keep it.
On the other hand, the OR may, whilst agreeing that a car is essential, decide that the value of your car is too high and 'seize' the car from you. If this is the case, then the OR would, normally, give you cash to buy a 'cheaper' car.

philnicandamy

Cars are a total nightmare in bankruptcy.......as others have said the OR "may" take an interest.....for what its worth ? i've known the OR to take cars worth a few hundred quid....

rog2

It is, however, worth bearing in mind that if the OR does vest an interest in the car, you, or a relative or close friend, can, usually, offer to 'buy' the car back from the OR, often for much less than its true value as the OR would, normally, dispose of the car through auction thus not only realising a very low return, but also incurring additional costs.
That way, at least, you get to keep the car.

L8RED

rog2 wrote: »

It is, however, worth bearing in mind that if the OR does vest an interest in the car, you, or a relative or close friend, can, usually, offer to 'buy' the car back from the OR, often for much less than its true value as the OR would, normally, dispose of the car through auction thus not only realising a very low return, but also incurring additional costs.
That way, at least, you get to keep the car.

Thanks Rog,

It was actually the CCCS who advised us to buy a car for under £2000, hence why we purchased a vehicle for £1800. So to get this straight, I buy a car for £1800, the O/R then makes me buy it back off him for around a similar amount, so infact the car costs me £3600?

rog2

L8RED wrote: »

It was actually the CCCS who advised us to buy a car for under £2000, hence why we purchased a vehicle for £1800. So to get this straight, I buy a car for £1800, the O/R then makes me buy it back off him for around a similar amount, so infact the car costs me £3600?

Whilst I am a little surprised that CCCS gave you that advice, I accept that they will be more aware of your circumstances than we will be - possibly they are more than convinced that yours, and your wife's, need to retain the vehicle will be definitely sufficient to allow the OR to let you keep your current car
I hope that they are correct.

If, and I repeat if, the OR does decide to take your car, then the OR should give you a 'cash' sum in order to purchase a cheaper vehicle. The experience of this board would suggest that that 'cash' sum is unlikely to be more than around £500.00. Your choice of car, around this amount, will be severely restricted. As your wife (like mine) is a nurse, then she will certainly need a reliable car which, to be honest, you are unlikely to get for around £500. This could be the thinking behind the advice given by CCCS.

But, and taking the worst case scenario, if the OR does decide to take your car, then you will 'lose' the £1800 value anyway. The OR will have to pay collection costs and auctioneer's premium as well as having to provide you with cash for an alternative vehicle. Taking that into account, then I would think that an offer of around £1000 should be acceptable to the OR - although there really is no guarantee.

In a way it's similar to the 'Beneficial Interest' in a home - I had already paid for my house, but still had to 'buy back' my beneficial interest from my trustee - in my case it cost me nearly four times what I had originally paid for the house, but it was certainly preferable to the alternatives.

But please don't read too much 'gloom and doom' into the situation. CCCS would not have advised you on the purchase of a car at, or around £2000 if they did not feel that you had a very good chance of keeping it.

Good luck.

jellygirl_2

Sounds like you will get to retain a car for your wife's work, no problem there - its up the OR whether you keep the one you have or its sold and you have get a cheaper one. My guess is that you would be allowed to keep it. My car was worth £2000 and I kept it. Good luck

philnicandamy

jellygirl wrote: »

Sounds like you will get to retain a car for your wife's work, no problem there - its up the OR whether you keep the one you have or its sold and you have get a cheaper one. My guess is that you would be allowed to keep it. My car was worth £2000 and I kept it. Good luck

as everyone's said though.....NOT all OR's are the same :rolleyes: