A different car question than usual

radarjay

About 2 and 1/2 years ago I gave back the car I had bought on HP because I couldn't afford the balloon payment. My mother then gave me her car to use but it remained registered in her name.

Last year, due to a new baby being on the way my mother gave me permission to sell her car and to use the money to buy a second hand car that I wanted, with the proviso that I gave her leftover money from the part exchange as her car was bought by the dealer for more than the replacement car.

So we changed the car reg document into my name to enable me to sell it as the dealer wasn't happy about buying it from me whilst it was in my mother's name. The new car was then registered in my name from the start.

I'm just wondering whether technically the OR will see the car as "mine" because its reg'd in my name or in the circumstances whether it could be construed as my mother's? The reason for asking is that I simply cannot afford to run it now as I've just been informed that as from next month my Housing Benefit is being reduced by almost £450 a month!

I am going to have sell it next month and will use the cash to pay the difference in my rent for the next 3 months.

Just like everything in my life, this seems to be yet another potentially complicated issue which will come up in the BR!

fermi

I can see an OR querying the details of the transfer and transactions on the vehicles, but as long as you can back up and explain what you have said then personally I can't see the OR coming to the conclusion that they have/had an interest in it/them.

You were never the legal owner of the original car, and the second will be sold to meet essential living costs which is perfectly legitimate.

That's my take on it anyway............

tigerfeet2006

RJ just out of interest what happens once the money is gone? How will you pay your rent then? Why is your HB being cut so dramatically?

You don't have to answer such personal questions just worried about what you are going to do.

((((((((hugs)))))))

radarjay

Thank you both for your answers. Its so hard all this stuff knowing that you've done things that could be construed as "fraudulent" or dodgy but never were and just a case of trying to get by!

Apparently after the first 13 weeks the HB is dropped to a rate which is in line with valuers opinion or something. The problem being the house is privately rented - costs £970 a month (and no it isn't a huge luxury house at all, just a very expensive area!) and the council consider I should be paying no more than about £600 a month which is ridiculous as there is no way you can rent anything bigger than a 1 bed here for that money.

From that £600 or so, they've taken off my WTC & CTC, CB and maintenance and that leaves me with a new HB of £280 a month from December. I run my own business but its making a loss currently so no drawings from that. My Council Tax is £130 a month alone.

I've applied to join the housing register but doubt I will be put in a high band so no doubt will end up waiting for years for a house. I don't actually know what I will do once March's rent has been paid, trying not to think about it too much to be honest.

tigerfeet2006

Also check out www.entitledto.co.uk to make sure you are getting everything you are entitled to.

radarjay

Yes I did this a while ago now and am getting everything I can see anyway.

Thank you.

piggeh

If the receipt for the car sale is addressed to you, then technically you are the legal owner. If the receipt is to your mother, then she is the legal owner. I had a similar position - the receipt was in my mums name although V5 was in mine, and we explained the situation that it was her car but she let me use it as long as I kept up the maintenance and RFL, etc. OR had no problem with this.

Homework

If you say that to the OR then I don't think they will consider it your mums.

You have just said that it is in your name, that you are selling it and that you are going to spend the proceeds from the sale.

If it wasn't your car then it would be sold by your mum with your approval and she would receive the proceeds.

piggeh

The name on the V5 is not necessarily the legal owner of the vehicle.