Should I sell my car to my wife

WhoThrewThat

I have been advised by cccs that BR is the way to go. Date booked and forms half done.

My question

My wife is on mat pay until mid nov as her money will stop after that we havnt included it in the SOA. We have a car worth max 4K its ours no hp or finance. We really want to keep it as we have 2 babies (youngest only 3 months) and life would be allot harder without it. Unfortunatly i dont need it for my job and we have no real argument for it to not be taken.

I asked the cccs if my wife could get a loan(she has no debt and we have no financial links at all) to buy the car. They said that if she was no longer earning after november if she gets a loan it is clear that I am paying for it so a reall no no. She did say another relative could buy it and make it available for our use as long as i show the transcation to the OR and obviously make the proceeds available.

If my wife continues to work we will have to put the babies in nursery so her wage is litrally only worth about 200 a month to us. She is willing to do this if it means she can buy the car. In this case would the OR except the loan does belong to my wife and the payment for it is coming from her money???

the cccs saif that i can sell the car as long as i keep the funds for creditors and surley my wife is intitled to get a loan to buy a car with her own money?

If anyone could shed some light on this it would be great

confused76

how much is your car worth and do you need it for work?

WhoThrewThat

Its worth a max of 4k and not i dont need it for work

brokeinbristol

I'm sure debt info or someone much more knowledgeable will be along soon to help you out on this one. I think I remember something about the OR selling the BI (beneficial interest) in the car back to you/your wife, for it's market value. (you may be able to negotiate on this)Hope this helps, try not to worry. We are in the same boat with my P/T salary & husbands F/T with x2 children in nursery, I have a deficit in my salary just to put the kids in nursery! i.e the x2 nursery fees is more than my PT salary

dojoman

You would still have to sell it at the current market value. We bought the BI back in ours, it was valued at £4300 but we only paid £1800 to buy it back. So in reality we got it back for £3800. (£2000 allowance from the OR and £1800)

WhoThrewThat

Thanks dojoman

Can i ask who bought the car back? was it a friend or reli? do you now own the car now or does someone else have to buy it and allow you to use it. I think my pearents are going to help us out with this one but not sure how it works? Obviously i dont have cash sat there and if i did it would go into BR anyway.

Sorry if im being stupid just massive fuzzy head right now. Trying to work out everything thats going to happen but i know in my heart of hearts that its there is no hard and fast with alot of this stuff and need to wait till the OR is involved

thanks again

wtt

JCS1

As you don't need the car for work, then the OR will not give you an allowance of £2k. OR will be looking to realise the market value.

WhoThrewThat

Thanks JCS

I kinda came to that conclusion and have come to terms with the possibility that it might go. At the end of the day I have borrowed money I'm not going to pay back so cant really grumble if i loose stuff.
Just a question on "full market value"
My car on parkers guide (which i'm told is what the OR's use) is worth between 2800 and 4K. Thats my exaxt car at the reg and year of reg that mine is. How do they decide where on the scale mine lands? do they come and have a look at it?
do they go for best/worse case or just throw a dart in the miiddle?

JCS1

Use Parkers trade price for your SOA, as if they take the car it is normally sold at auction.

Edited to add: Though if your parents do consider buying the car, they might send an agent out to do a proper valuation.

WhoThrewThat

Original Price
£19,695 Independent Dealer£5,025 Private Good £4,075 Private Poor £2,810 Part Exchange£3,030

From parkers guide. Which one would use. Cant see a trade price on there

supa-girl

Not sure if this helps - DP and I both sold our cars to buy one which we share. He went BR and I didn't. The car was in my name and Parkers value was around £3500. He explained to OR that we bought the car together and we had the paperwork to show I had sold my car and contributed half the amount. The OR let us keep the car - they didn't see it, ask to value it or anything, just accepted the valuation we gave them and accepted our explanation, end of.

Who paid for your car in the first place? Did it come from jopint money? If so they may accept that half belongs to your wife, and if she is able to pay them for your half that may be better value for you both than her "paying you" the full value? I presume your wife isn't going BR also? You could also argue that she intends to return to work and will need the car for that?

SG