DRO - sold car for cash a problem?

Bubbly85

Hi, I am considering applying for a DRO. But before I do I want to know whether selling my car last year is going to have a negative effect on my application.

1st Sept 2012 - 31 Dec 2013: I worked part time, earning around £800 per month (my bank statement shows proof of this income). As I knew this wasn't going to be enough to pay my rent of £395 plus car insurance plus petrol and living expenses, I decided to sell my car to my sister who was looking to buy on 29th Sept 2012. Sold it for £1000 in cash and did not deposit any of it in the bank, but it helped me to survive during that time period!

Car details when sold: Renault Clio Hatchback 1.2 16v dynamique 3dr (AC), 2004 (04), poor condition, 116,000 mileage.

What proof will I need to provide?

Thanks,
Bubs

Rylynn

A bill of sale, I guess a piece of paper saying you sold the car to "Josephine bloggs" on such an such a date at such a price and signed by you and your sister.

They can also check who the registered keeper is now which will show up as your sister.

Would say you may be told that was a bit under book price mind you as Clio's hold their value and it is an 04 plate.

I have no idea if this is going to cause you any problems, but someone else here will come along and advise you on that and what else you can do to prove it. Can you prove you paid your rent in cash? or any other large bills that would normally come out of your account?

RL

wba31

The sale of the car itself is fine, and in my opinion requires no proof. Parkers (what the DRO Unit use to value vehicles) values your car between £975 and £1300 approx, so £1000 sale is fine.
Questions may be asked about what happened with the £1000. You say you used the money for living costs, but the IS may ask why this was needed when you had sold your car and removed it's running costs from your budget. its been 7 months since you sold the car so it's only £140 a month your budget has been topped up with, unless you bought any household items, washing machine, fridge, cooker, bedding, towels, something needed replacing?

Bubbly85

Thanks for your replies Yeh I am concerned that I sold the car for alittle less than its value.

I only required the extra money during those 3 months, as from Jan onwards I worked full-time. A return train ticket daily to work was £15, so that was my biggest expense (total month cost: £300). Still cheaper than driving though at that time. In Dec I moved nearer to work to cut costs and paid a £200 deposit plus one months rent upfront, so I remember the cash helped me with that.

wba31

Bubbly85 wrote: »

Thanks for your replies Yeh I am concerned that I sold the car for alittle less than its value.

I only required the extra money during those 3 months, as from Jan onwards I worked full-time. A return train ticket daily to work was £15, so that was my biggest expense (total month cost: £300). Still cheaper than driving though at that time. In Dec I moved nearer to work to cut costs and paid a £200 deposit plus one months rent upfront, so I remember the cash helped me with that.

That all sounds reasonable to me and wouldnt see any problems if it were me doing your DRO...