Another car question

Ineedaname

I've learnt LOADS today

hisandhers1978

If it was me, I'd wait and speak to the OR about this situation and see what they advise you to do. They may want you to end the agreement, but if you need this for your work etc, then there is some agreement to be made. What is the car worth? If its not excessive they may have no interest and let you continue with the payments but I wouldnt be sure. Good luck

Sboot3

Thank you everybody for your help. I've spent all weekend running these scenarios through my head and speaking to my Dad, it's tricky not being able to explain it's because of the plans to go BR, but I'm not ready to tell him that yet.

So, if my Dad paid off the HP and bought the car, he could then choose to allow me to use the car and I could be the registered keeper?

Could he then sell this car and buy a more economical one for me to use and maintain, and keep the extra money, without it being involved in the BR?

Sboot3

Just to add, the values are

HP to pay £2.9k
Value of car on Parkers £2.4k - £3k

So he would be paying the right value for the car.

Ineedaname

The car would then belong to your dad and not be included in your BR at all as it wouldn't be your asset. So yes, he could do what he wanted with it.

Sboot3

So does this avoid the issue of "favouring a creditor".

I would have simply sold the car for it's market value and that money has ended the HP agreement. I would have no money left over, my Dad's money would go straight from him to the HP company and then the HP agreement with myself would be finished and I would give my Dad a receipt for the money for the car?

And whether and when I pay him back is our own business outside of the BR.

I've really confused myself with all this.

debt_doctor

Hi,
I do not think you would be causing an issue for yourself regards preference by terminating the agreement ie giving the car back after paying at least 50%.

A prefference in bankruptcy has two parts;
1) the action - monies paid over and above what other creditors are being paid
and
2) the intent - You must be paying the money "with a view to improving the creditors position if you were to become bankrupt"

Not sure what you would gain from it though, as either way you will lose the car and not be responsible for the shortfall. Could potentially deprive the OR of a partial asset- maybe!

Dad paying off the agreement worries me greatly. The rights of the hirer are not transferred by payment from a third party. In my view, despite Dad paying, the ownership would transfer to you and be seized in full as an asset.

The option of dad allowing you the use of a newly purchased car sounds good.

DD

dojoman

DD, thanks for that, I thought that this maybe the case but was not completely sure.

Sboot3

Thank you.

That does make sense and is really helpful. It's also good to read that I may actually be "getting it"! I am not in any way trying to get out of paying anything, if it had equity in it I would gladly give that equity up, I just need a car to get to work and would rather have a more economical car and pay an IPA than keep paying out money for this car which is not practical for my needs now.

So, best POA is -
End HP agreement
Dad buy a car which he can then choose to allow me to use

Still to ask then -
Can I be registered keeper for insurance purposes? As I would be getting the insurance and the only named driver.