Car when in a DRO?

KatieShopstoomuch

I am in the process of applying for a DRO
My current car is worth less than £500 so I'm hoping that won't be a problem. However a family member is purchasing a new car in December and have said they will give me their old car, its value is £3000ish - Will I be unable to accept it if I have had the DRO approved?

portofcall

Common sense would tell me it is an asset worth over £1000 that you own. The guidelines are very clear.

KatieShopstoomuch

I must lack common sense

I do not own it and will not own it when applying for my DRO. In approx. 6 months time I would own it - so would the DRO be revoked?

portofcall

I guess as the DRO lasts 12 months the answer if probably no.
I would imagine the strict criteria to obtain a DRO is not just to kick start it but to adhere to it during its' duration (12 months).
I am not an expert so I may be corrected.

fatbelly

KatieShopstoomuch wrote: »

I am in the process of applying for a DRO
My current car is worth less than £500 so I'm hoping that won't be a problem. However a family member is purchasing a new car in December and have said they will give me their old car, its value is £3000ish - Will I be unable to accept it if I have had the DRO approved?

That's correct.

However, the car may be worth less than you think. Check the private poor valuation on Parkers Guide. In 6 months the value will have dropped 10-12%.

KatieShopstoomuch

fatbelly wrote: »

That's correct.

However, the car may be worth less than you think. Check the private poor valuation on Parkers Guide. In 6 months the value will have dropped 10-12%.

Thank you for the reply. I have checked several sites and cheapest valuation is coming in at £3200 I didn't know about getting it until this week and then it just dawned on me it may impact on the DRO and if i'm fortunate enough to be approved I don't want to lose it. Could I keep it in their name and just be the main driver of it? It's become a confusion to me now.:A

fatbelly

KatieShopstoomuch wrote: »

Thank you for the reply. I have checked several sites and cheapest valuation is coming in at £3200 I didn't know about getting it until this week and then it just dawned on me it may impact on the DRO and if i'm fortunate enough to be approved I don't want to lose it. Could I keep it in their name and just be the main driver of it? It's become a confusion to me now.:A

The Parkers site is the one that we are told to use. You can't use We Buy Any Car or anything like that as the values are deliberately understated.

The registered keeper is not necessarily the owner so it would seem sensible for them to retain ownership and let you be the keeper.

I think if you were the main driver it should be insured in your name, which may be difficult if you are neither the keeper nor owner.

sourcrates

You can tax and insure the car yourself, as long as you are not the registered owner you should be ok.

I know someone on a DRO who does this, was totally upfront about it, and was not a problem.

KatieShopstoomuch

Thank you all very much. Will look into being the registered keeper then. I just don't want to risk not getting the DRO or getting it revoked but also could really do with the car for work purposes as mine is 100% on its last wobbly wheels