Questions on a Car

Steve_C_4

I need a car to get to work (work is some distance away and I work shifts and there is very limited public transport) so if the OR agrees I may allowed to keep it.

It’s worth about £1,900 and the CAB told me that if it’s worth around or less than £2,000 it should be OK.

But I then read that you are only allowed a car if it’s worth around £1,000.

Which figure is the correct one?


There is a slight complication, my brother in law is due to change his car he would do this either before or after my Bankruptcy whichever is better in the view of the OR.

Because he very kindly offered to give the car.

The car is worth around £4,500 so I know he can’t “give” me the car because I would then have an asset. And I would need to give it to the OR.

So, he has offered to let me have the “use” of the car. And he remains the genuine and legal owner.

How would that work?

Does the car need to be registered to me but he remains the owner?

(and how do you show that a car registered to me is not owned by me).

Or does it stay registered to him?

Will I be able to insure it as the “main driver” even though I don’t own it?

I did ask an insurance broker and they were very vague.

I think they insisted to be able to insure it generally it had to be registered and owned by the person wishing to insure it.

Does anyone know if I can have the “use” of it – but not own it and be able to insure it as the main driver?

And assuming all this can be done I am sure the OR will require legal evidence that the car is owned by my Brother in law. What paperwork would I need to provide?


I am so sorry for all these questions but I do need to let my brother in law know because if it simply is not possible to “give me the use of the car” he may decide trade it before I am Bankrupt.


Many thanks,

Steve

Mouse1812

Steve_C wrote: »

I need a car to get to work (work is some distance away and I work shifts and there is very limited public transport) so if the OR agrees I may allowed to keep it.

It’s worth about £1,900 and the CAB told me that if it’s worth around or less than £2,000 it should be OK.

But I then read that you are only allowed a car if it’s worth around £1,000.

Which figure is the correct one? £1,000 is the correct figure (was reduced from £2,000 a while ago and CAB are out of date)


There is a slight complication, my brother in law is due to change his car he would do this either before or after my Bankruptcy whichever is better in the view of the OR. Makes no difference if you are just borrowing it

Because he very kindly offered to give the car.

The car is worth around £4,500 so I know he can’t “give” me the car because I would then have an asset. And I would need to give it to the OR. Which would be a bit silly

So, he has offered to let me have the “use” of the car. And he remains the genuine and legal owner.

How would that work?

You get insurance, advising the insurance company that you are the main driver (and registered keeper) but NOT the owner

Does the car need to be registered to me but he remains the owner? Yes, the registered keeper is the person responsible for the car, not the owner.

(and how do you show that a car registered to me is not owned by me). No need but it would be wise if he wrote a letter confirming that he has agreed to lend you the car before he hands over the keys

Or does it stay registered to him? No

Will I be able to insure it as the “main driver” even though I don’t own it? You can be the main driver with insurance on a car you do not own - otherwise how do all those with cars on HP, leases etc do it?

I did ask an insurance broker and they were very vague. Muppets :rotfl:

I think they insisted to be able to insure it generally it had to be registered and owned by the person wishing to insure it.

Does anyone know if I can have the “use” of it – but not own it and be able to insure it as the main driver?

And assuming all this can be done I am sure the OR will require legal evidence that the car is owned by my Brother in law. What paperwork would I need to provide? Letter from BIL dated before change of owner registered with DVLA confirming loan of car


I am so sorry for all these questions but I do need to let my brother in law know because if it simply is not possible to “give me the use of the car” he may decide trade it before I am Bankrupt.


Many thanks,

Steve

Hope that helps, you might also like to review my answers here https://forums.moneysavingexpert.com/discussion/4017525

SteveABC

My car was worth £1500 at the time of my BR (a year ago), and I was allowed to keep it.

Steve_C_4

Many, many thanks Mouse and Steve.

Mouse, can I ask how does my Brother in law tell the DVLA that I am the registered keeper and he is the owner of the car?

Is there a particular form that he completes. Would you by any chance know the form number or details.

I want to make everything as easy as possible for him.

Because he is doing me such a favour by letting me have the "use" of the car.

I know all this will depend on the OR letting me have a "car (use of)" because we wouldn't be able to afford the running costs otherwise.

I assume if I am are allowed a "car" I can put the reasonable running costs on my living expenses.

Again, thank you so much for your help.


Steve

Mouse1812

The "log Book" or V5C (Certificate of Registration) is the form used to notify DVLA of change of Registered Keeper. It specifically carries a warning that it is not proof of ownership. This form must be completed and sent to DVLA when there is a change of keeper (not owner). You do not notify DVLA about ownership, they keep no record of ownership. Hence my suggestion about a letter from BIL to confirm agreement.

I stand corrected however, you may find insurance more difficult than I thought. Apparently most insurance companies require you to have a financial interest in the car. You need to call a few to find out what is possible. Otherwise your BIL may need to continue insuring the car which might not be ideal. It may be possible however to “lease” the car from him under an arrangement whereby you must insure the car, giving you a financial interest in it. Out of my depth now - so call a couple of insurance companies and find out. (Brokers are still muppets btw)