Car question in DRO

edited 30 November -1 at 1:00AM in IVA & DRO
7 replies 1.8K views
AmelieAva8AmelieAva8 Forumite
23 Posts
edited 30 November -1 at 1:00AM in IVA & DRO
Hello, my husband has a lot of debt but less than 20k, he is probably going to apply for a DRO soon, (long story short he might be forced to leave his job) plus in sept he won’t have much money so it deff seems like a viable option.

Anyway, I’m waffling back to my main question....


11 year old Audi, 100,000 Miles but coming up as £1980 on Parker guide poor condition. His dad actually bought the car, well ‘paid’ for the car, he took out a loan and transferred the money to my husband to buy it from the dealer as it was 100 miles away and he thought it would be easier for my husband to go and get it (also we never thought we’d be in this predicament to have to worry about who owns it!)

So... because my husband actually paid the dealer and signed the forms for the car does that
Mean he will be made to sell it and buy a cheaper one? Or can we prove somehow that it was his dads money in the first place :/

Really don’t want to part with the car, I think if there is a chance it has to go we will not do DRO for him and do token payments until in a better situation for a few years. He’s just had to pay £500 for stuff that needs doing so we know it’s going to be reliable unlike a car worth £1000 (he’s had it for 6 years) that we won’t know the history.

Thanks for reading

Replies

  • edited 6 June 2018 at 8:33PM
    sourcratessourcrates Forumite, Board Guide
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    edited 6 June 2018 at 8:33PM
    Get valuations from other sources, Im sure you can get it lower than that.

    All you have to do is state is worth less than £1000, it is not something that is checked up on.

    Trade price will be lower, use that maybe.
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  • Ok that’s great thank you!
  • edited 6 June 2018 at 2:37PM
    National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
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    edited 6 June 2018 at 2:37PM
    Hi there


    The Parkers Guide is a recognised source for valuing cars. If you thought the car was worth less, for example because it had been involved in an accident, you could take it to some local garages for an independent valuation. However be careful about what other sources you use for valuation. If you use We Buy Any Car this would not be valid for a DRO as they do not offer the market value when buying cars.


    In terms of who owns the car, that is usually the person who purchased it. You mention his dad took out a loan to pay for the car, did he expect to be repaid? Or did he give the car as a gift to your husband? Unless the car is only on loan it seems unlikely your husband can argue it is not his.


    Assuming your husband does own the car, unfortunately if it's worth more than £1000 he will not be eligible for a DRO. He could either wait until it devalues and then apply, or consider selling it and buying a cheaper one. Seek advice from one of the free advice agencies on what to do with the profit from the sale as that can also affect the DRO. Good luck with it all.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • AmelieAva8AmelieAva8 Forumite
    23 Posts
    He was paying him back for the car, but still owes him money on it which can’t be repaid anymore currently, could his dad ask for the car back because of this? Will check on a few garages and see what they say, will the OR want proof in terms of quotes?

    Thanks
  • fatbellyfatbelly Forumite
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    They do hold their value quite well.

    At 2k it is going to take 2 years to depreciate to £1000. Parkers guide is the one we are told to use.

    It does sound like it is going to be a barrier to a DRO.

    It also sounds like Dad is a creditor. How much is he still owed?

    Could he ask for the car back? Not without a proper legal document.

    Options:

    wait 2 years
    sell the car at a market price (if in good condition it could be worth £2600) and use £1k on a new car, keep £900 as savings, £600 on household expenses and £90 DRO fee.
  • AmelieAva8AmelieAva8 Forumite
    23 Posts
    Okay so is it a case of just trying to sell it privately or can we go through like Evans hawshaw for a quick sale? He’s just been sacked from his job and we have to claim universal credits as a top up with my work long story he can’t get a new one so situation isn’t going to improve until at least a year he’s going back uni sept till June) so could do with just getting the DRO done ASAP so we start the ball rolling.

    Thank you everyone for your ongoing advice I really do appreciate it.
  • edited 7 June 2018 at 9:55PM
    fatbellyfatbelly Forumite
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    edited 7 June 2018 at 9:55PM
    As long is the car is sold for a market price you can answer no to the question 'In the past 2 years have you sold anything for less than it was worth?'

    Edit: which one of you is the UC claimant? An advance payment of UC is a qualifying debt in a DRO
    The Department of Work and Pensions' Policy Team agree with the Insolvency Service that Short Term Advance Loans under the Universal Credit system are a qualifying debt in DROs. The indications from the calls we've been receiving suggest this advice may not yet have reached the front-line staff at DWP
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