Car and deprivation of capital

Ames

Hi, I know this has come up before but the most recent one seemed to be a troll post.

I'm trying to decide whether to order a new motability car, which I need to do in the next few weeks.

I'd rather buy a car, if I get money I'm due in time.

The ones I'm looking at would be about £6500 for something about four years old.

I know it's a bit of a piece of string question, but do people think that would be a reasonable amount not to fall foul of deprivation rules?

To explain to those who don't know - I'm due an inheritance of about 47k so will be coming off means tested benefits for a while. When it comes time to go back on them all my spending will be scrutinised for whether it was reasonable or could be seen as deprivation.

My reasons for buying a car are nothing to do with getting my capital down. I'm worried about the transfer to PIP and losing a car at short notice, Motability is an expensive way of using a car for low mileage non adapted cars, and based on recent experience car ownership is much simpler than leasing.

rogerblack

Ames wrote: »

I'm trying to decide whether to order a new motability car, which I need to do in the next few weeks.

I'd rather buy a car, if I get money I'm due in time.

The ones I'm looking at would be about £6500 for something about four years old. .

Purchasing a reliable second hand car - especially with a small fraction of your available capital - is what is likely to be considered prudent, and not in any way excessive.

If the person has not already died, and it is possble to get them to change their will, it can be put in a form of trust to avoid any issues.

pmlindyloo

Have you got a motability car at the moment through DLA?

If you have then it might be worth reading this as there is a transitional support package available for those who transfer to PIP and no longer qualify.


,http://www.motability.co.uk/understanding-the-scheme/pip-and-motability/q-and-a-transitional-support-package

Ames

lyrical_gangster wrote: »

They scrutinise how you spent the money? How invasive. I'm not saying they shouldn't scrutinise, just that it's very unclear what would be seen as a reasonable amount.

Fingers crossed you manage to find a job before that time. Given my complex health needs that's highly unlikely. Although I would hope an adapted car is not seen as derivation of capital. Also spend more up front, pay less in the long wrong is a good rule.

rogerblack wrote: »

Purchasing a reliable second hand car - especially with a small fraction of your available capital - is what is likely to be considered prudent, and not in any way excessive. It's what counts as a small fraction that I'm struggling to get an idea of.

If the person has not already died, and it is possble to get them to change their will, it can be put in a form of trust to avoid any issues.

Mum died four years ago so too late to put it in a trust. She planned to do that but never got round to making a will. I'm quite happy to live off the money for a few years.

The house was sold in October but it's been one delay after another since then. If I don't get the money in the next few weeks then the choice will be out of my hands, it'll have to be a motability car otherwise I'll be risking not having a car at all.

Ames

pmlindyloo wrote: »

Have you got a motability car at the moment through DLA?

If you have then it might be worth reading this as there is a transitional support package available for those who transfer to PIP and no longer qualify.


,http://www.motability.co.uk/understanding-the-scheme/pip-and-motability/q-and-a-transitional-support-package

Yes I have a motability car now, I was looking at that last night. Money wise it depends how soon I'm transferred over as to whether or not it's more cost effective to get a motability car and have it taken off me, or buy a car and use the DLA to build up a fund for repairs and insurance. Long term I want to own rather than be stuck with motability because for low mileage it's a horrendously expensive way of motoring.

rogerblack

Ames wrote: »

If I don't get the money in the next few weeks then the choice will be out of my hands, it'll have to be a motability car otherwise I'll be risking not having a car at all.

The fundamental problem is that there are no hard and fast rules.
What is considered reasonable by one decisionmaker may not by the one sitting at the next desk.
Some have gone as far as requesting grocery reciepts!

In principle, you can contact them beforehand and ask if this may be considered deprivation, and that answer is then binding on them.
I don't know how this works in practice these days.

Ames

I thought about doing that, but I guess that as I won't be on benefits at the point of buying the car then I won't be able to get a decision.

For general spending I'm just going to draw the same amount every month that I would have been entitled to in benefits. Surely then nothing can be considered deprivation and I won't have to keep grocery receipts!

rogerblack

To be clear - what benefits are you on?
If you're on contribution based ESA in the support group, then this will not be affected by capital.

Ames

I'm on Income Support, Housing Benefit, Council Tax Benefit, and Severe Disablement Allowance (I think the latter isn't means tested, but it can't be long now till I'm moved to ESA which will be).

konark

Your mother died 4 years ago but her house was only sold last October, so effectively you've owned (part of) a house for over 3 years whilst claiming benefits. Were you living in the house? Where is the money from the house sale?
Surely you should have been paid by now, are you the administrator of your mother's will?

Ames

There was no will. I was administrator and handed everything over to a solicitor.

I haven't owned a house or part of a house. The estate owned a whole house.

I wasn't living in the house.

The solicitor has the money from the house sale as she can't hand it over until the estate is finalised and the estate can't be finalised until all creditors are paid. One creditor took six months to produce a final bill. Another the solicitor is having trouble finding as it seems the company has changed names.

I'm very angry that I haven't been paid yet. But there's nothing I can do about it.