Update on car HP and OR

jammie1

Many thanks to debtinfo, finally decided to ring OR about the car (they wanted the £840 equity in the car, car worth £2300, I owed £1660 on day of br). Rang them to discuss why it wasn't exempt was given several explanations that the car didn't actually belong to me and they weren't interested in car just the equity that its too separate things. I kept quoting paragraph from IS website that debtinfo posted for me and she kept 'trying' to explain why my car wasn't exempt, finally convinced her to read the paragraph and she said she would have to ring me back.

Very quickly got a phonecall back and said she had to ask a few more questions eg how far work was from home, how I would get there without car (didn't suggest like the other day to get a loan to buy a different car!). Then implied that I didn't need to work where I do/live where I do as 50+mile round trip. Then said she would speak to AOR and get back to me. She then rang back to say I was right! However the car is worth £2300 so £300 over the £2000 limit so they want £300 cash in the next two weeks and then the car will be exempt. Was quite surprised by this as really the car is not worth £2300 to me as its on HP but £300 is better than £840.
So it really is worth questioning as they don't always get it right.
I am so grateful to this forum.

fiveyearplan

Sounds like good news. So do you have the £300 to pay and will they allow the car payments on your SOA?

jammie1

They haven't said anything about allowing the payments on my soa (but they did say they would allow me £150 to get a loan for another car) but have only got 4 payments left so will manage somehow my parents have offered to help out if needed so am hoping I can ask them for the £300 too.

fiveyearplan

Good luck with it.

I can't believe they told you to take a loan!

debtinfo

I would keep questioning them, the amount that they are exempting is the £840 ont the £2300 as you dont own the rest of the car, and you still have to pay the rest if you want to keep the car. They cant sell the whole car to you as they dont own the whole car. All they can sell to you is the £840 interest which is below the £2,000 and so should be exempt. Keep pressing them and if they say they are sure that they are right, ask them if they are as sure this time as they were the first time. Ask them how they would make a profit if they didnt sell it back to you or exempt it and they run the risk of costing the estate money if the car sells at lower than expected at auction. Also mention the cost of recovering the vehicle, the auction fee, storage until the auction and the costs of the agent acting on their behalf. Also ask them if they have adopted the agreement from the HP company or if they are not adopting the agreement.

jammie1

I still can't believe it either, never again!

jammie1

Thank you debtinfo, I am just so worried about annoying them, but after I came off the phone feeling grateful that it had been dropped to £300 I did think about the fact that it is only worth £840 as such. Think I will give them a ring back on Monday and ask this. What does it mean to adopt or not adopt the agreement from the HP company?

debtinfo

If the OR wants to sell the car on HP they have to adopt the agreement(take it over)first. When they sell the vehicle they have to pay of the outstanding balance. Most OR's will need to be sure they are going to make a profit after this transaction and so only do it when there is lots of equity. ie if the HP was £2,000, they would need to provide a vehicle for the exemption another £2,000 and probably £1,000 for the costs of the sale meaning that the OR needs a car of £5,000 or so to make a profit. if not they will "not adopt" the agreement which tells the HP company that they are free to continue as per normal and that the OR doesnot want it. in your situation they cannot adopt the agreement as their is not enough equity (to make sure they dont incur a loss to the estate) and if they "not adopt" the agreement they cant take the car away later as they have given up their rights.

jammie1

Thank you had to read that through a few times but it makes so much sense I will ring on Monday and see what they say. Many, many thanks. Will update you on Monday.

fiveyearplan

Good luck!

tigerfeet2006

Thanks Debtinfo for your fantastic input into this :A

Will be thinking of you on Monday Jammie, keep us updated.