Car Value: How is it reached?

philnicandamy

....there is NO allowable price for a car in bankruptcy i've known OR's take interest in cars worth a few hundred quid

its all down to your needs at the end of the day...

philnicandamy

Feynman wrote: »

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!

they usually go for the "poor" vaulation....if they still are unsure they'll send an appointed agent around to do a valuation instead

it may seem madness to you...BUT at the end of the day every single penny from your estate is classed as something that could go to your creditor no matter how little they raise

they've taken £1 or £2 worth of premium bonds in the past as well..on the "slim" chance it may have a payout

Feynman_2

philnicandamy wrote: »

they usually go for the "poor" vaulation....if they still are unsure they'll send an appointed agent around to do a valuation instead

it may seem madness to you...BUT at the end of the day every single penny from your estate is classed as something that could go to your creditor no matter how little they raise

they've taken £1 or £2 worth of premium bonds in the past as well..on the "slim" chance it may have a payout

Oh I absolutely understand that they need to recoup as much as they possibly can - that I don't find crazy. What I found crazy was using something which (consistently, I have found) gives an incorrect value and so is not in anyone's interest, including the OR's.

jedi82

philnicandamy wrote: »

they usually go for the "poor" vaulation....if they still are unsure they'll send an appointed agent around to do a valuation instead

it may seem madness to you...BUT at the end of the day every single penny from your estate is classed as something that could go to your creditor no matter how little they raise

they've taken £1 or £2 worth of premium bonds in the past as well..on the "slim" chance it may have a payout

My OR took my £10 premium bond that my nan bought when i was little, just in case it paid out. Oh well

debtinfo

I used parkers for many years when i was there and found it to be very good, it gives various prices for different situations and also gives an average millage so that you can adjust the price towards the actual situation. One other thing that i have found very consistant is that the bankrupt who does not want to lose his car nearlly always thinks that their car is worth less than the OR :-). If in dispute the the OR can use a variety of different sources and has been said can send a valuer round, Value is by its nature always going to be a little subjective

Also as Phil has pointed out what is allowed really comes down to need, I have seen cases where the bankrupt a salesman earning a huge commision has been allowed to keep a very flash car as it was to suit their image as long as they where paying a big chunk of that large salary as an IPA

debtinfo

Premium bonds are not actually taken in case they pay out in the future as the OR cashes them in as soon as possible. The reason they are taken is that unlike a car or a household item there is no legal basis for them to be exempt in any way and so automatically become an asset in the bankruptcy. As the OR has to write to NS&I to see if there are any unclaimed prizes they might as well cash even a £1 premium bond in at the same time and so do, They also check at the same time that it is the only PB you have (people often forget about them as they tend to hold onto them for a long time) so again if they are writing for that they may as well cash them in

Feynman_2

debtinfo wrote: »

I used parkers for many years when i was there and found it to be very good, it gives various prices for different situations and also gives an average millage so that you can adjust the price towards the actual situation. One other thing that i have found very consistant is that the bankrupt who does not want to lose his car nearlly always thinks that their car is worth less than the OR :-). If in dispute the the OR can use a variety of different sources and has been said can send a valuer round, Value is by its nature always going to be a little subjective

Well my comments on Parkers are based on comparisons with what cars actually sell for. In my experience (and tbh, you only have to spend 15 mins on Autotrader/eBay/Pistonheads/Gumtree to come to that conclusion), the two are very often very different. After all, I only purchased my car three months ago for £2500, yet Parkers adds 1k to that value! There is no way I would get the Parkers valuation if I put it up for sale.

That glass one via Vauxhall was closer to the mark.

Feynman_2

And though there is obviously an incentive for the bankrupt to undervalue their car, I can't see how overvaluing is of any benefit to the OR. If the OR valued my car at 3.5k, based on Parkers, they're going to be very disappointed when it actually goes on the market. Surely it is in the interests of the OR to have an accurate valuation rather than an inflated one?

JCS1

Feynman wrote: »

And though there is obviously an incentive for the bankrupt to undervalue their car, I can't see how overvaluing is of any benefit to the OR. If the OR valued my car at 3.5k, based on Parkers, they're going to be very disappointed when it actually goes on the market. Surely it is in the interests of the OR to have an accurate valuation rather than an inflated one?

If the valuation is borderline between letting the person keep it, or it being sold at auction, the examiner will arrange for an agent to inspect the car and get a more accurate valuation for a decision to be made.

But this would be too costly to be done in every case, hence the ones that are borderline (or where in dispute).

Feynman_2

Well I guess I could end up losing my car then. It's frustrating because I sold my last car for 5k a few months ago to release some money to pay my creditors - 2.5k to the creditors, and 2.5k for the current car. Looks like I will doing the same again, though this time I will be selling a 2.5k car and replacing it with a 2k car.

Thanks all for your posts and help.