Car Value: How is it reached?

Feynman_2

I'm new to this forum, so Hi all!

Well, I'm starting to realise that perhaps I have little choice but to file for bankruptcy and so am trying to gather as much information about all the consequences of doing so.

What I am trying to understand at the moment is how the OR would deal with my car. From googling I have found a range of maximum values from £1000 to £2500 at which the OR will let you keep your car, and so the first question is: Does anyone know what the maximum value actually is?

The second question is: How does the OR reach a valuation? Does he/she use something like Parkers? Because I have often found the valuations on that site to be way off.

My particular situation: I purchased a car a few months ago for £2500, though I think I got quite a good deal and it is probably worth nearer £2700 on the market. Parkers puts the value at anywhere between £2600 and £3400 (ridiculous) depending on condition. But importantly, how would the OR value it?

Any advice gratefully received.

mcjordi

Usually Use CAP or Glass' guide..

use the p/x your car on the vauxhall site for a rough idea

JCS1

Usually use Parkers guide - remember if the OR did take the car it would be sold at auction so lower than usual.

And as for the maximum - at the OR's discretion.

Charco_2

I think there will always be some discrepancies about the value of cars...

What's the book value? (the value a secondhand car dealer would buy it from you for... this will be different from/lower than the value he will try to sell it at obviously)

You could try putting your car details into webuyanycar...

I think Parkers is often acceptable too.

End of the day, a few hundred £s here or there isn't going to make much of a difference - if you really need a car! The rules are there really to prevent you driving around in a ferrari while crying poverty to your creditors. So if your car is a few shekels over the guideline amounts, your OR is probably going to turn a blind eye to it as it's not worth the bother!

I think the allowable price for a car in BR is £2,500/£3,000 in England and Wales, about £1,000 in Scotland and i think up to £3,500/£4,000 in Northern Ireland.

tigerfeet2006

Charco, the experiance on this board has been £2k for England with the odd one slipping through because of an understanding OR.

Charco_2

I accept that, and it would probably be prudent to think in those terms.

In THEORY however, everything should be negotiable as long as it can be justified. For example if you travel a lot for work then the OR is going to consider how downgrading your car might affect your earning potential especially if you are going to be making contributions for three years.

In Scotland i think they look at the potential value of your car at the END of your bankruptcy... (or at least that's how a Trust Deed would work it)

Feynman_2

Thanks for all the replies!

I just tried the valuation tool on Vauxhall (powered by Glass, I think), and it gave a value of £2620 for average condition. I appreciate that all OR's are different, but do you think most or few ORs would allow me to keep it at that valuation?

Angiepange

Feynman wrote: »

The second question is: How does the OR reach a valuation? Does he/she use something like Parkers? Because I have often found the valuations on that site to be way off.

.

My OR sent out an appointed agent to value our car. The agent said he researches a few options for valuation, including Parkers, Trade magazines and he looks at local garages and what they are selling for.

dojoman

I was the same as Angie, the OR told me that they would allow £2000 either against the car I had and buy back the BI, or let them take the car, sell it and then give me £2000 to buy another one. There was no room for negotiation with my OR.

sealsandsqueals

I hope this helps.

I had my OR interview yesterday and I'll have to pay anything over £2,000 to them. She was looking at Parkers good private price and so I'll have to pay £220. Was hoping that would be ok but I have to pay the difference. I'm not too worried though as I'm just so grateful to be able to keep it. And my IPA doesn't start until Nov or Dec and so I can use the money this month that I would pay into an IPA for the car.

Feynman_2

sealsandsqueals wrote: »

I hope this helps.

I had my OR interview yesterday and I'll have to pay anything over £2,000 to them. She was looking at Parkers good private price and so I'll have to pay £220. Was hoping that would be ok but I have to pay the difference. I'm not too worried though as I'm just so grateful to be able to keep it. And my IPA doesn't start until Nov or Dec and so I can use the money this month that I would pay into an IPA for the car.

Geez. If my OR uses Parkers good private as a valuation it would come up at £3,545 for my car, which is an absolutely ridiculous valuation. I think if they have that much faith in Parkers I would hand over the keys and watch as they fail miserably to get anything close to that!