Free car...but not so straightforward

OverAndOut

Hi

I'm hoping for some advice on a bit of an unusual situation.

I claim income related ESA support group +SDP +EDP. I also receive PIP higher rate daily living and housing benefit private rental one bedroom rate. My parents also help me out with a fixed monthly standing order into my bank - both DWP and my council are aware of this recurring gift.

Now to the unusual part. My stepfather is very elderly and has decided it's time to give up driving. Once he made that decision he no longer wants his car; He suffers from anxiety and so his car is causing him a lot of distress. So he really, really literally wants it out of his thoughts without delay. I'm concerned that someone may take advantage of him and he sells it for a penny to a stranger. We talked it through but could not come to any concrete solutions. He wants to give it to me. I already have a car which is four years old, just a small hatchback probably worth about £3000. His car at three years old probably worth about £5000. I have savings of about £4000. The idea being that I would put both cars as part exchange for a newer, one year old small hatchback. This is where it is not clear to me what to do. My stepfather does not want to either take his car to a garage to sell nor sell it privately.

I don't know whether a car given as a gift counts as capital and would mean a change of circumstances, even if it were only for a week or two until a new car was bought.

That's really the question, I guess it's just a yes/no, although if any one could advise if there have been similar precedents and the best approach would be to contact someone at the DWP. If this were the case, what is the likely reaction?

Thanks for Reading.

[Deleted User]

Would it not be an option for you to go with him to a dealer who would buy the car from him and he then banks the money? Then should he chose if you update your car he could gift you the difference that you might/would need?

OverAndOut

It may be possible if my stepfather is accompanied and with some gentle persuasion that he could do as your suggestion. Although he was adamant, due to his anxiety issues, he did not want to do that. I can talk it through more thoroughly with him and give him some reassurance.

Your suggestion about him giving me a gift to make up the difference, is what I'm unsure about. The gift would take me over the £6000 threshold - even if only for a day and so I am unsure whether it would require me to inform the DWP. I suppose the obvious thing to do, is just to speak to them to find out. However, IMO I have a feeling doing so would waken "The Beast" and all sorts of procedures and forms and appointments would ensue, which is something I'm not mentally strong enough to cope with. Thanks for your suggestions.

OverAndOut

Just a quick follow up to your suggestions, that's occurred to me. If I put my own car in part exchange and use my savings, around £4000 to buy a newer car, would that be considered deprivation of capital? And then if my stepfather, at a later date, gave me a gift for the difference, would that be transparent and legitimate according to the DWP's policies?

WillowCat

A car is a personal chattel, and not an asset that is counted as part of your capital. There's no rule to say you can't own two at the same time. The only exception I'm aware of is if a car is a classic car and has a value as an investment. Then it probably would be counted.

So no reason not to go ahead with your plan.

konark

Strangely enough, as long as you're not running a business buying and selling, there's nothing to stop you having a garage full of Ferraris, a collection of Rembrandts and a 24-carat gold dining table, none of them count as capital just personal goods.

OverAndOut

Thank-you both WillowCat and Konark, for your opinions - they've eased my anxiety about this unusual (well unusual to me) situation. When I speak with my stepfather later today, I think it will help to take away his worries also.

[Deleted User]

I'm sorry, I know this won't help but I had a similar situation with my father. Hes 82, got Parkinsons and probably edging towards dementia. He's also extremely stubborn but I reckon that is what is keeping him going as well as making him a bit on the awkward side lol.

The problem is and its hard to watch is he is making flash decisions.., and they always involve him losing quite large sums of money. He has some money in the bank, but with care costs looming in the not too distant future.., not enough.

Recently he gave away his car, and bought a mobility scooter, Used it once, decided he didn't like it, wanted to sell it for about half of what he bought it for (shop he bought it from wouldn't take it back and he couldn't deal with the hassle of it all). I reckon that little lot cost him £7k! Unfortunately because of distance, I can't be there every day to try and persuade him not to do these things. But I did refuse the car when he offered it to me. I just couldn't take it. I thought I'd persuaded him to keep it and use it but a month later, it was gone and the useless mobility scooter was there.

If you have savings of £4k, from the money you have coming in, do you really need to take the money from his car? By all means help sell it, then just hand the money over. Maybe they can have a good holiday or something. I realise you have health issues, but well, there comes a time when we have to look after our parents and not let them help us anymore because they need help and resources more than we do.

Sorry, but I felt I had to try and give another perspective.

Lioness_Twinkletoes

deannatrois wrote: »

I'm sorry, I know this won't help but I had a similar situation with my father. Hes 82, got Parkinsons and probably edging towards dementia. He's also extremely stubborn but I reckon that is what is keeping him going as well as making him a bit on the awkward side lol.

The problem is and its hard to watch is he is making flash decisions.., and they always involve him losing quite large sums of money. He has some money in the bank, but with care costs looming in the not too distant future.., not enough.

Recently he gave away his car, and bought a mobility scooter, Used it once, decided he didn't like it, wanted to sell it for about half of what he bought it for (shop he bought it from wouldn't take it back and he couldn't deal with the hassle of it all). I reckon that little lot cost him £7k! Unfortunately because of distance, I can't be there every day to try and persuade him not to do these things. But I did refuse the car when he offered it to me. I just couldn't take it. I thought I'd persuaded him to keep it and use it but a month later, it was gone and the useless mobility scooter was there.

If you have savings of £4k, from the money you have coming in, do you really need to take the money from his car? By all means help sell it, then just hand the money over. Maybe they can have a good holiday or something. I realise you have health issues, but well, there comes a time when we have to look after our parents and not let them help us anymore because they need help and resources more than we do.

Sorry, but I felt I had to try and give another perspective.

The more I read your posts the more I realise you really are a good person. I love the way you cope with all that life has thrown at you, you just get on with it without moaning or complaining. Your posts are always helpful and non-judgement. Maybe we could all learn something from you.

[Deleted User]

Thankyou Twinkletoes but honestly, I am more human than most. I have made every mistake in the book and I am sure invented a few more. That's why I try to not be judgemental.., I've probably done the same.

(Deleted some lines as doesn't help with the OP's thread)

Cornucopia

It sounds to me like it's mainly a question of timing. I'd suggest that you take possession of your Stepfather's car (being the more valuable one of the two), and use that and a chunk of your savings to buy the new car.

Once that's done, you can replenish your savings back to the level they were before by selling your car (to a dealer or privately).

As above, the cars themselves do not count as capital, so all you need to do is to make sure that the cash element stays more-or-less as it is now.