Deprivation of capital and swapping cars.

wiccanlou

Bit of background.

I inherited a almost brand new 2 litre focus in 2007 when I was still working full time and my partner was and still is on IB. I am now on CB ESA due to change over to IR ESA so we will be losing a lot of money because of this. I also have a BB and am awaiting my DLA tribunal as is my partner.

It has been an incredible struggle to keep the car running but now it is getting beyond our means but we need our car as we live in a villiage, the buses are every 2 hours to the next town where the drs etc are based.

We are looking at selling the car privately and then buying a smaller engine size or model or seeing if we can exchange it with the manufacturers dealership, whichever give us the better deal.

Questions are.

If we sold it and then used the cash to buy a different car would the DWP see that as Deprivation of capital?

Would we need to get permission to do so to avoid being accused of deprivation of capital?

If we swapped via a dealership how would they treat that?

Any help or advice would be gratefully received.

Mojisola

wiccanlou wrote: »

We are looking at selling the car privately and then buying a smaller engine size or model or seeing if we can exchange it with the manufacturers dealership, whichever give us the better deal.

Questions are.

If we sold it and then used the cash to buy a different car would the DWP see that as Deprivation of capital?

No.

Would we need to get permission to do so to avoid being accused of deprivation of capital?

No.

If we swapped via a dealership how would they treat that?

Can't see why it would interest them at all.

There are two main issues with DOC. You have to have got rid of money so that you can claim benefits and the DWP has to prove that was your motivation.

You have very clear motivation in replacing a vehicle which is essential because of where you live.

HappyMJ

The money you receive from the sale of the motor you might want to put that aside possibly into a savings account rather than your general current account and use it for the purchase of another motor. It might look like it's DofC but you can sell and hold onto the cash for a short period (even though the amount might appear to exceed the limits) whilst looking for a replacement but spending that money and a little more will not be DofC. If it is ever queried you really should keep a record of the invoices/reciepts and anything else to prove how much you got for your motor and how much you paid out for the new one.

Trading in via a dealership would be the easiest as you never get the cash but you may not achieve the best price.

wiccanlou

Thanks for that I will talk to the bloke about it some more and see what our options are, the car is 5 years old and hasn't even done 50,000 miles yet but because its a gas guzzler its tax, insurance petrol cost are astronomical in comparison to say a fiesta or something like that.
As Mojisola says we need our car there is no way I am able to walk to the next town to see my GP I find it a struggle to walk out my house to hang washing up.

The car is only worth about £4000 but obviously we don't want to do anything that the DWP will see as wrong but we literally cannot live without our car. Especially as the nearest supermarket is 5 miles away and our hospital which I'm at every week is 10 miles away the bus that goes there every two hours is only one we have and don't start until late and finish at 5 so I'd miss appointments.

dseventy

Do you have paperwork stating you inherited the car? Copy of a will or solicitors letter?

If you do and its only 4K and you intend to swap it for another car worth 4K I don't think its a issue.

I would be careful and keep all paperwork associated with the sale of the car and the new one. Keep it with the paperwork associated with the inheritance.

What I would say is that you sound like you are about to have a drop of income and whilst a cheaper car will have cheaper running costs, cars can be a cash drain on just ESA. Can you run the car without DLA? If you can, go for it, else I would wait. As its under 16K (and DLA is not means tested) it should not be an issue.

D70

wiccanlou

Can't see why me inheriting the car 5 years ago when I was working full time would have any bearing on the situation now and did so for two years after the fact before my mental and physical health failed me. But it was a chattel of part of an estate my mum inherited and she signed it straight over to me as I was the only one with a driving license and this was with the permission of the solicitor executing the will. I do have a copy of the will but again it was left to my mum who never actually owned it as such on the VC5 document, it went stright from my Step dads estate to me. Effectively she gifted it to me I guess.

We really do need a car and really are struggling to run it now especially as my cb esa claim is coming to an end and will go on to IR esa so will go from £90 a week to £28 a week. We both have mobility issues among other trouble and if we did not have a car we would not be able to do shopping, go to the drs, go to the hospital, attend all of the mental health appointments I have all of which are in other towns. We would be prisoners in our own home because of it, my blokes DLA tribunal would have been over and done with the other week if it wasn't for one of the panel becoming ill so no one knows when it will be re-booked for.

The intention is to get as much as we can for it and get a vehicle to the same value just smaller engine and running costs like insurance, tax and petrol. As the car is classed as a sport model the insurance is a lot higher and the emissions thing puts it into a higher tax bracket too.

So looking at the info it would be better to approach the dealership who sold the car and see if they can exchange it for a smaller model with lower running costs so we don't actually receive any money in our hands.

paddedjohn

if you are just changing cars to save money i cant see how that would be a problem or a concern for the benefits folk. You would be better selling private rather than to a dealer as this will get you more cash to spend on a decent replacement.

Mojisola

wiccanlou wrote: »

The intention is to get as much as we can for it and get a vehicle to the same value just smaller engine and running costs like insurance, tax and petrol. As the car is classed as a sport model the insurance is a lot higher and the emissions thing puts it into a higher tax bracket too.

This completely legitimises the sale of the old car and the purchase of the new one. The DWP would have to prove that you spent money on the new car in order to deprive yourselves of benefit. You won't be doing that - you have a valid reason for the purchase which puts you back into the position you were in before (being a car owner) but with lower costs for the future.

Stop worrying.

wiccanlou

Thank you for all your advice I am a worrier by nature I try not too. Thanks again x

karenx

I think your only worry was if selling the car takes you above 16k in savings then you spend it again. If it doesn't take you over that limit you should be fine

[Deleted User]

you sell the car bank the money and keep the change,as long as at no point your savings exceed the limits,i cant see where DOC of capital comes into this at any point