Lease vehicle

oldtool

My daughter is going to declare herself bankrupt her current vehicle is three years old and it is in my name, she is playing with the idea of leasing a vehicle she is a Tesco manager and come and goes at strange hours and she does a high mileage what would be the official receivers take on this.

TheGardener

I think the lease agreement will almost certainly have a BR clause that would end the lease as soon as she is BR so I don't think she can - no doubt others will know more about this. The general rule of thumb is that she can own her own car as long as its worth less than £1000 (although a case could be made to her OR re high mileage necessitating a higher value car)
However, she can drive a car of any value if its not hers...if its yours and you can prove you paid for it - it is a legitimate expense for her to pay for running costs.

CKhalvashi

TheGardener wrote: »

I think the lease agreement will almost certainly have a BR clause that would end the lease as soon as she is BR so I don't think she can - no doubt others will know more about this. The general rule of thumb is that she can own her own car as long as its worth less than £1000 (although a case could be made to her OR re high mileage necessitating a higher value car)
However, she can drive a car of any value if its not hers...if its yours and you can prove you paid for it - it is a legitimate expense for her to pay for running costs.

Unless it's a taxi (which needs in our district to be less than 5 when first plated, and less than 10 years old without written consent of the council, and I only know of 2 that have been allowed), then I've never known more than £1000, even if it's for a high mileage user.

My recommendation would be to try to get a VW Golf/Skoda Octavia diesel (which rarely break) for less than £1000, or someone else must own the car and lend it to her.

CK

alastairq

OP...when you post, the 'vehicle is in your name'.....do you actually mean, you bought & paid for it?

Or, simply, that the vehicle's V5c is in your name? [As the Registered keeper]


If it is the former, [and you have a paper trail to prove it if necessary?] then your Daughter ought to keep on using it....it will not form an asset in her bankruptcy.

Note, it is irrelevant whose name & address is on the V5c, with regards to the bankruptcy. However, if your daughter is considered the 'main user', then her name & address should be on the V5c. This does not make her the owner [as is noted on the V5c]...

Daughter can, however, claim for the running costs on her SOA.

macbabypam

I had a mini on a lease basis. I informed them of BR and they immediately told me that BR broke the lease contract. Even though the OR wrote and told them he had no interest in the car as I relied on it for work and I am the sole breadwinner in my family. I had never missed a payment either.

They would not negotiate and said I could not appeal as it was in black and white in the lease contract.

Justunlucky

Does this mean that the OR didn't have an issue with the lease and if so what would you say would be an acceptable price. There are leasing companies that lease to people who are bankrupt as I've just found out so this May be an option

alastairq

Perhaps the fact that the OR didn't have an issue with a leased car could be that the car, while leased, isn't the BR's asset[property]?

The issue isn't the leased car....it is whether the OR will accept the cost of the lease within the SOA?

safc88

The OR will have no interest in a leased asset unless there is some equity in it.

They will just notify the financier of their appointment and it will be down to them to decide what action to take, 9 times out of 10 they will want the vehicle returning

alastairq

how can an asset be an asset if it is leased?

Surely , if an item is leased, it doesn't actually 'belong' to the lessee?

Therefore is not the lessee's asset, but the asset of the lessor?

[After all, if one leases a property, that property is not one's 'asset'....that asset still vests with the landlord.]

macbabypam

The OR didn't have an interest in the car and was happy for me to continue making the payments. They even emailed Mini/BMW to tell them that at my request.

It was Mini who had the problem,they were very matter of fact and let me know that being BR was non negotiable in returning the vehicle and that it was clearly stated in the T&C of the lease contract.

However I work for the NHS and they have told me it is not a problem to have a lease car with NHS when BR so it really depends on the leasing company.

Lightattheend

macbabypam wrote: »

However I work for the NHS and they have told me it is not a problem to have a lease car with NHS when BR so it really depends on the leasing company.

That's what they have told me too (I also work for the NHS).