Vehicle question

Hulahoops87

Morning all,

Well the time has finally come where I can no longer hang on and going bump is my only logical option. I currently own a car on finance, a 3.5L gas guzzling sports car that's crippling me. I owe about 10k and in it's current condition I'd say it's worth about 8.5k, the clutch had recently failed and the main dealer quoted me 2k to fix it which really was the final nail in the coffin. I need to car to be repossessed which I'm more then happy for them to do.

Now my question is, how am I supposed to get a new car? I'm a sales manager which occasionally travel so I do need a new car for work. If I borrowed say 1.5-2k off family for a replacement car what do you think the chances of the O.R letting me include a car repayment to family for say £100 per month? The car situation is the only thing I'm really struggling with.

Help!!!!!

mysterio_2

Sorry to say the receiver will 100% refuse

Hulahoops87

Oh dear, I stubbled across a forum post a while back when a chap said the O.R had agreed to his family leasing him a car in there name and aload him to make the repayments of £150 a month as he needed it for work?

mysterio_2

I very much doubt it...what might have happened is they purchase the vehicle and you pay back with any surplus you might have every month

i'm sure an OR working or not wont allow a monthly figure as a payment to family...they'd be treated as a creditor in bankruptcy like everything else

Hulahoops87

Thanks for the advice, best getting scraping together some pennys for a car then before I take the plunge!

mysterio_2

another thing to bear in mind as well the OR's figures changed a short while ago they now allow £1000 for a vehicle NOT £2000 as it used to be if you require car for work & exempt uses


if I car falls over the £1000 limit the OR may sell the vehicle as an asset and then give you 1k back to buy a replacement

Hulahoops87

Brilliant going to look extremely professional turning up to customers houses in a car thats more then likely going to be beaten to death.

Where would I stand if say my parent's bought a car for me in there name soley for me to use? So they would own the car but I'd cover every aspect of the running of it?

art_for_arts_sake

To be brutally honest I think the car's the least of your problems. I dread to think how many people have got themselves into financial difficulties just to have a flash motor to drive around in. Personally I'd rather have no car than have to worry about where my next HP payment is coming from or how to pay my next garage bill. Cars are a luxury, not a necessity. If you're not self-employed and using a car for work it should either be supplied by your employer, or you'll have a vehicle allowance which should cover your costs including business cover on your car insurance. If you're not getting this I'd seriously consider your future with your employer.

Idiophreak

Hi,

Forgive me for kinda crashing the thread...I always find these things quite interesting, but don't know so much about them...and like to ask questions when I think of them.

So, purely for curiosity...in the OP's situation...What's to stop them simply buying a new, cheap (<£1000) car on credit card to use for work, then just adding the credit card to their creditors in bankruptcy?

...which leads to another, more general question...if you decide you're going to go bankrupt, what stops you just going mad and using up all the credit you have at your disposal before you file...?

Hulahoops87

art_for_arts_sake wrote: »

To be brutally honest I think the car's the least of your problems. I dread to think how many people have got themselves into financial difficulties just to have a flash motor to drive around in. Personally I'd rather have no car than have to worry about where my next HP payment is coming from or how to pay my next garage bill. Cars are a luxury, not a necessity. If you're not self-employed and using a car for work it should either be supplied by your employer, or you'll have a vehicle allowance which should cover your costs including business cover on your car insurance. If you're not getting this I'd seriously consider your future with your employer.

I'm the manager at a plumbers merchant, I'm primarily office based but have to do occasional site visits and trips to customers houses when problems arise. Not enough traveling to warrant a company car, but I need one none the less.

Mouse1812

Idiophreak wrote: »

What's to stop them simply buying a new, cheap (<£1000) car on credit card to use for work, then just adding the credit card to their creditors in bankruptcy?

...which leads to another, more general question...if you decide you're going to go bankrupt, what stops you just going mad and using up all the credit you have at your disposal before you file...?

If you do that kind of thing on purpose, it's fraud. You can get into serious trouble for that and part of the bankruptcy process is to investigate the conduct of the bankrupt prior to bankruptcy. Deliberately putting your creditors into a worse position than they were in before is a very bad thing to do.

Back to OP's question

Yes you can borrow or hire a car off a relative or friend. If you absolutely need it for work (which generates an income) the OR might allow the payment so long as it is reasonable.

If the payment is just a rental and you do not own the car there is no question of the relative (or friend) being treated as one of your creditors. Don’t fall into the trap of getting your parents “to buy you” a car, they buy themselves another one and lend/hire it to you.