Car Valuation for DRO

lisanoo

Hi all,
Just wanted to see if anyone here has experience of this? It looks very much like my car will be valued at 1200-1500 and I'm just wondering if there is any leeway at all given for cars at this valuation when it comes to getting approved for the DRO or are they very strict on this?

fatbelly

Depends what you mean by strict.

Cars

Valuations of cars, taking into consideration their age, mileage and condition, can be obtained using the online Parker‟s Guide website. Please navigate to this site via the following link:

http://www.parkers.co.uk/cars/prices/

Please note that you should take the debtor‟s description as to the condition of the vehicle when deciding which value to use from the guide e.g. Private Good or Private Poor.

This website should be used to verify the debtor‟s valuation of their car prior to entering the value of the vehicle on the application form.

It should be noted that the Parkers website only provides free valuations for cars registered from 2003 onwards. Therefore, in the case of older cars, an intermediary is permitted to accept the debtor‟s own valuation for the purposes of the application. However, the debtor should be made aware that the Official Receiver may make enquires as to how the valuation was arrived at, and if the Official Receiver determines that a deliberate undervaluing has taken place this may result in the revocation of the DRO and criminal or civil sanctions.

If it's post 2003, get a valuation (poor condition will be OK) from Parkers.

If older than this, try https://www.wisebuyers.co.uk

If it's still over £1000 you may have to wait a bit.

wba31

fatbelly wrote: »

Depends what you mean by strict.



If it's post 2003, get a valuation (poor condition will be OK) from Parkers.

If older than this, try www.wisebuyers.co.uk

If it's still over £1000 you may have to wait a bit.

In my experience, the Insolvency Service only use Parkers, so if you drive something "normal" (focus or golf, mondeo or accord etc) and it's not on Parkers due to being too old, chances are that it's not going to be worth more than £1000 and you should be ok. If you drive a 1998 Bentley, then you may need to seek evidence of a valuation.

If it is on Parkers, but Parkers says £1200 it may appear that on that face a DRO is not an option.

HOWEVER your car may have higher than average mileage, and a dent on the door, and rust on wheel arches. If you can get a valuation from a car dealer in writing that evidences your car to be worth less than £1000, a DRO intermediary should keep evidence of that proof, list that on the forms and the DRO should be fine.

Fatbelly is certainly not wrong in the advice given, but different advisors in different charities will have different experiences of putting these things through, so I write from my experience where I work, and we havent had any problems adopting this approach

debt_doctor

Hi,

If a car is too old to value on the Parkers free service then the guidance states that the imtermediary should use the debtors own valuation, which suits me fine.
Also as said, a Parkers valuation can be challenged if the car in question is high mileage or otherwise not up to scratch. You can get a mileage adjusted price on Parkers for a few pounds which can make a real difference. I have also asked clients to obtain other proof such as local traders opinion, all of which the DRO unit was happy with.

DD