car

cootambear

my friends car is up for mot soon, its a banger and will cost more than its worth to repair so she needs a relacement.

she is going to have to be bankrupt soon

she drives a long way to work

will the car be exempt?

what if it is exempt but they class it as `too valuable`

what is `too valuable`

if getting a hp is possible (!) would they consider this an extravagance and stop the agreement

can the future repairs needed for mot`s etc be included as living expenses? or the need to replace a car eventually?


Lots of questions, sorry

many thanks in advance

dojoman

Hi and welcome to the forum, please have a look ate link below, it contains a lot of useful advice about all aspects of going BR including what happens to your car:)


https://forums.moneysavingexpert.com/discussion/1056083

alastairq

cootambear wrote: »

my friends car is up for mot soon, its a banger and will cost more than its worth to repair so she needs a relacement.

she is going to have to be bankrupt soon

she drives a long way to work

will the car be exempt? If she can demonstrate a 'need'..plus show that alternative transport not viable or available

what if it is exempt but they class it as `too valuable`Then the car would need to be sold, but the OR would return a sum equal to the current limit

what is `too valuable`Currently I believe the recommended allowance of value is around £1000.

if getting a hp is possible (!) would they consider this an extravagance and stop the agreement The continuation of the arrangement will depend upon the condition's of the agreement, from the HP company's viewpoint....and whether the payments are affordable. It is not owned by the customer, but by the HP company

can the future repairs needed for mot`s etc be included as living expenses? or the need to replace a car eventually? Yes, as they could be covered by travelling expenses. Future replacemetn costs would eed to be found fro elsewhere within the SOA.


Lots of questions, sorry

many thanks in advance

hi.

If HP is available, continuation once BR is petitioned is up to the HP company. [the car is not an 'asset' of the BR individual]....but the payments would need to be 'reasonable' and affordable, not more costly than alternative public transport, for the essential journeys....

If saving for a replacement, then those savings would need to be found from elsewhere within the SOA.

No specific category exists specifically for that purpose...or is allowed.

However, once expenditure is agreed for all other aspects of the SOA, the OR has no say in how that money is spent.......

Remember....when looking at cheap motoring [at our end of the spectrum], then 'value'....which is often subjective, has no real role to play.....what matters is, how much will it cost to keep it going...not what the car is worth.


A new set of tyres can be more than the saleable value of a car....but what would one replace it with? Maybe someone else's sorry tale of woe?

All cars need money spent on them from time to time.......the real issue is trying to keep those costs down, by various means.

Talking of value, the value of a car for BR purposes should really be the lowest known..auction value, etc....probably as per Parker's guide......

cootambear

so;

whats the reasonable limit she can buy a second hand car for, or a monthly hp agreement?

Inverita

I am a discharged BR. Speaking from my own experience I found that explaining why you want a car i.e. for getting to work is the simplest way. We were able to keep a car that was only 2 years old on a finance agreement. I wrote to the finance company before they wrote to me and told them i was BR. I knew i was in breach of my agreement and also explained the situation to them i.e. needed it for work. They also accepted the situation. My advice therefore is not to panic. Go for full disclosure on everything including cars. Do not be afraid to challenge anything. The OR has been open to all our suggestions and comments and yes...he has listened. Good luck.

dojoman

cootambear wrote: »

so;

whats the reasonable limit she can buy a second hand car for, or a monthly hp agreement?

If she is not in an HP agreement now then it would be frowned upon if she took one out knowing they were going to go BR.