complicated car question

lee316

This is getting more complicated by the day. Okey, here it goes. We have got two cars, as we both need it for work. Well I don't, as I have been made redundant in March and still can't find another job. My car is an old banger that I bought for £100 two years ago. Rght now it's sitting on the driveway as it has a few bits wrong with it but we ccan't afford to repair it. Don't think anyone is going to be interested in that one. My OH is a registered keeper of both cars.
Now its with his car where it gets complicated. His old car has finally given up the ghost around xmas last year.
As we both worked then, in totaly opposite directions, there was no way that one of us could give the other one a lift. So in January of this year we decided that he should get another car. We didn't have cash to buy one outright, but we found on the internet one of those places that you could get a car on HP at small monthly cost. My OH did look into public transport, but after working out the fares it worked out cheaper to buy the car, not to mention that it's not only used to go to work, but shopping and fearing the kids around.
Of course, because of our bad credit rating, we couldn't get one, but the very "lovely" people at that company told us that if we can get someone else to apply for the car, we could still have it.
To cut a long story short, my sister in law has bought our car on HP, her name is on the finance, it is registered in my OH's name, and we give her cash every month for it. The car cost all together £3500, over 5 years. Had nothing but trouble with it since, and had to dish out extra money on repairs as their waranty department is refusing to repair it, but that is another story.
We have just looked up the current value of it, and it says it's only worth between £1600 and £2000. Ouch.
We got stitched up good and proper.

Now the question is, we declare the car as an asset, would they take it from us? My OH is registered keeper and has insurance on it, but technicaly the car belongs to his sister, or does it. If we put her name down as a registered keeper, would they accept it or still class it as OH's, because of insurance. If they take the car, we still have to keep paying for it, as his sister is, and we will be paying the full term for the car we don't have any more.
I really don't see the way around this one, please help.

lee316

Bump. Anyone I realise that you probably don't know the answer as you didn't have have the same circumstances, but I am just worried in case this post gets overlooked.

skylight

Dont put down your sister as the registered keeper as its not true. The OR will check the DVLA and will be miffed at the fib. That one fib then means the OR will delve into your BR far more throughly than usual. You should list the car as an asset - you have to as its in OH name.

So, just to clear this in my mind, your OH currently has 3 cars registered in his name? 2 do not work? - then get a scrapyard round to collect them and deal with them for you. One is working but his sister owns it??

The one that is his sisters - being the registered keeper is not necessarily the legal owner and as long as his sister has kept all the paperwork for the car to prove that the finance is in her name that should be enough to argue with the OR as to who's car it is. The major problem is going to be the paying the sister the amount each month. As your OH has use of a car he can put down insurance and running costs on his SOA. But he will not be allowed to list the payment of the HP to his sister on his SOA - that amount will have to come out of his surplus.

But with all things not being equal in the world of ORs and car's, how your particular OR will deal with it, no-one can say for certain. Just remember that the legal owner is not necessarily the registered keeper. And the car is on HP anyway just via your sister - so legally the car isn't even hers either really! A car that she can prove she bought and that she is liable for the finance for probably will not matter to the OR - its the problem of paying her back within your SOA though.

lee316

Thank you Skylight, sorry I probably didn't explain myself clearly, no my OH doesn't own three cars, only mine which is not working and that one that his sister owns (?). Yes I think you are right, we will just declare it and explain everything to OR and let them decide. Not that we have anything else to hide or worry about, we just want everything to run as smoothly as possible. And honesty is the best policy after all.
As for my car, it is still taxed and insured, as we were hoping to be able to gather some money together to repair it, it is not a great amount, but we just can't pay for it now as we have to find money for fees.

debtinfo

Hi lee, the OR can not exempt an unroadworthy car, it is not allowed by law. if it is worth only £100 the OR will probably let you buy the car back for a nominal offer, say£50, offer £10

headoutofsand

debtinfo wrote: »

Hi lee, the OR can not exempt an unroadworthy car, it is not allowed by law. if it is worth only £100 the OR will probably let you buy the car back for a nominal offer, say£50, offer £10

Oh yes they can. They did with me, car no MOT, worth about £100 to a boy racer. The OR said "Keep it" I did then sold it.

I did warn the OR that the tax and ins was up soon and if she had not made her mind up by the time of expiry, I would get the car removed off the public highway and scrapped.:p

lee316

Oh, okey, didn't know that, thanks. Suppose there is nothing we can do about either of the cars now, will just have to wait and see.

debtinfo

headoutofsand wrote: »

Oh yes they can. They did with me, car no MOT, worth about £100 to a boy racer. The OR said "Keep it" I did then sold it.

I did warn the OR that the tax and ins was up soon and if she had not made her mind up by the time of expiry, I would get the car removed off the public highway and scrapped.:p

Did you receive form repr officially exempting the vehicle. It would be interesting to see what reason was given if it was not roadworthy.

headoutofsand

debtinfo wrote: »

Did you receive form repr officially exempting the vehicle. It would be interesting to see what reason was given if it was not roadworthy.

Hi DI. The answer to your question is no. I made it quite clear to the case worker that the car in question would be scrapped unless she could give me a definite decision to my own deadline. I told her in no uncertain terms that the car would be scrapped unless this request was forthcoming. There was no paperwork involved, the car was mine to do what I wished with.