DRO Car Valuation

lurke

Hi forumers,

After the realisation that I'm struggling with debt, I completed the remedy tool on Stepchange and it recommended a DRO. I have looked into this and it does seem to be my best option. However, the only "issue" is my car value. The car itself is difficult to price. The model would be worth over £1000 but it has spaceship miles on it and a bit of cosmetic damage.

Where is the best place to have it valued? I used wise buyers after looking at a similar thread but it priced the car at £3500 which is double what I paid for it at the beginning of the year!

If it truly is worth over £1000, is it a (sad) simple case of selling and replacing with a cheaper car before applying for a DRO?

Thanks.

National_Debtline

Hi lurke


For the purposes of a DRO, getting 2-3 quotes from local 2nd hand car dealerships could help. We would normally recommend using wisebuyers but it sounds like it had a bit of a meltdown on this occasion!


If it does prove to be worth >£1,000, then yes, downsizing it would be a way of making yourself more eligible for a DRO. If you do this then just make sure you keep a paper trail so you can show that the car was sold for market value if asked by your DRO intermediary.


Dennis
@natdebtline

lurke

I appreciate your reply Dennis, thank you.

fatbelly

The recent (1 October) rule change means if you do 'downsize' your car and release some cash you can still qualify as long as your 'other assets' (that's other items of value plus cash and savings) do not exceed £1000.

Any more than that, of course, must be used to pay your creditors on a pro-rata basis before DRO

wba31

The first place to check is https://www.parkers.co.uk. Pop your reg in there and see what that says. If it comes in under £1k or is too old for a free valuation your intermediary should ask you for your valuation of the vehicle.
Cosmetic damage is a strange one with valuing a car, it may have scratches all over it that someone deems reduces the value significantly, however a bit of polish and buff them out and in that scenario would the car value would instantly go up?

Check Parkers first, that's what intermediaries should use. If unsure ring StepChange and get their advice on how to proceed if they are who would do your DRO

lurke

Looks like I may need to downsize. I have tried various sites and the consensus seems to be between £900-£1500.

Fatbelly, could I pick your brains further? You mention a pro-rata basis for paying creditors. What do you mean by this? I am currently up to date with all payments, I am struggling like hell though and have now got into an ever downward spiral with debt which is getting worse and worse (especially with Christmas around the corner).

Does it make a difference whether I apply for a DRO with payments up to date or otherwise?

loskie

go through through the online we buy any car value. Turn up to your appointment and see what they will offer you.
Parkers is a waste of time especially for older low value cars.

wba31

loskie wrote: »

go through through the online we buy any car value. Turn up to your appointment and see what they will offer you.
Parkers is a waste of time especially for older low value cars.

A webuyanycar (or similar website) quote will not be accepted by an Intermediary or the Insolvency Service, so would be your waste of time.

Parkers is the way to go as it is what the Insolvency Service use...

wba31

lurke wrote: »

Looks like I may need to downsize. I have tried various sites and the consensus seems to be between £900-£1500.

Fatbelly, could I pick your brains further? You mention a pro-rata basis for paying creditors. What do you mean by this? I am currently up to date with all payments, I am struggling like hell though and have now got into an ever downward spiral with debt which is getting worse and worse (especially with Christmas around the corner).

Does it make a difference whether I apply for a DRO with payments up to date or otherwise?

Less haste. If Parkers says poor value is £900, and your car is poor condition in your eyes, you should be ok.

If it's really worth over £1000 as not poor in your eyes, get valuations from car traders, on headed paper.

Other thing is if your mileage is higher than the average on Parkers. you have to pay, but adjust it to be true and see what it comes back with then.

You mention you have done the online Stepchange thing - call them and get them to value the car and see what they say - they would be the ones who process your DRO and have to be happy with the valuation... they might tell you there is no problem and can proceed as normal

fatbelly

lurke wrote: »

Looks like I may need to downsize. I have tried various sites and the consensus seems to be between £900-£1500.

Fatbelly, could I pick your brains further? You mention a pro-rata basis for paying creditors. What do you mean by this? I am currently up to date with all payments, I am struggling like hell though and have now got into an ever downward spiral with debt which is getting worse and worse (especially with Christmas around the corner).

Does it make a difference whether I apply for a DRO with payments up to date or otherwise?

If you are still making the contractual payments, then that is fine. You are treating all creditors equally. You must not (or else declare that you have done) treat one creditor preferentially to another.

If your car is valued at £900 then it does not disqualify you.

loskie wrote: »

go through through the online we buy any car value. Turn up to your appointment and see what they will offer you.
Parkers is a waste of time especially for older low value cars.

WBAC is explicitly disallowed as a valuation site for DROs.

loskie

If they use Parkers guide they are obviously ignorant of car values. But as what I imagine a public sector organisation then that's no surprise.