Dro and change of car.

rossp3090

Hi I am just enquiring to see if anyone will be able to advise me. I am 4 months into my DRO, and unfortunately my car has given up on me. My sister is going to help me to get a new one so I can get too and from work.

I know I can't have a car over £1000 but how do I get a potential buy valued? I been offered a car at a reasonable price but when searched on parkers the price given for private is £685-£1050. Is this classed as being over what number would the insolvency service use?

My other question is once I have my new car do I have to contact the official receiver to let them know? I want to do everything correctly, and not end up with my DRO being revoked.

Thanks in advance for any help. 🙂

bradders1983

When cars are taken they are sold at auction and they go for a lot less than the "private" amount.

Although I will say this....how do you think they would know you have swapped one rustbucket for another, and would they even care?  They have better things to be doing than checking you have swapped a low value car (which clearly they werent intetested in to begin with) for another. 

If you had no car you might lose your job and then they wouldnt get any money out of you, so there is a bigger picture to consider even if they fancied taking a £900 banger off you (which they wont).

rossp3090

I don't know how they would find out that I've got another car, I just assumed that would be a change of circumstances that you have to inform the official receiver about.

As it's a DRO, if I bought a car and they decide that it's value is more than £1000 my DRO would be cancelled and I would become liable again. Obviously I want to make sure I avoid this.

bradders1983

Changing one low value car for another is not a change in circumstances.  Now, if you swapped it for a Ferrari, you may have a point.

As for the bigger picture, which situation would the OR prefer?

1) your car breaks, you cant fix it, you lose your job because you cant get to work and this means your creditors recieve nothing from you
2) your car breaks, you replace for one of similar value, you carry on paying 

rossp3090

Yes but under the terms it states you can't have a car worth more than a £1000, so I've used parkers for the car I was looking at and it could be valued over £1000. 

I just want to make sure that I'm not shooting myself in the foot if I was to go for it.

bradders1983

rossp3090 said:

Yes but under the terms it states you can't have a car worth more than a £1000, so I've used parkers for the car I was looking at and it could be valued over £1000. 

I just want to make sure that I'm not shooting myself in the foot if I was to go for it.

You are being far too cautious. As I said, no car in Parkers with a maximum private value of £1050 is yielding anywhere near that sum as seized cars are bulk sold at auction for probably around half that. 

And thats before you even consider how they would even know. They dont sit there like private investigators checking up on everyone. Far too many new bankrupts coming through, its like a conveyor belt.

If you are seriously concerned, ring them and ask but as someone who had been through the process and took the absolute P with it, I wouldnt bother. I wont elaborate too much on a public forum, mind.

JCS1

bradders1983 said:

When cars are taken they are sold at auction and they go for a lot less than the "private" amount.

Although I will say this....how do you think they would know you have swapped one rustbucket for another, and would they even care?  They have better things to be doing than checking you have swapped a low value car (which clearly they werent intetested in to begin with) for another. 

If you had no car you might lose your job and then they wouldnt get any money out of you, so there is a bigger picture to consider even if they fancied taking a £900 banger off you (which they wont).

There are no IPA payments during a DRO, I think you have mentioned it a few times on this thread now.

bradders1983

I havent mentioned the term IPA once.

JCS1

bradders1983 said:

I havent mentioned the term IPA once.

No but you have mentioned the bits below:

If you had no car you might lose your job and then they wouldnt get any money out of you
1) your car breaks, you cant fix it, you lose your job because you cant get to work and this means your creditors recieve nothing from you

If not an IPA, what money are you referring to?

bradders1983

I may have confused the two terms then, apologies. My overall point about swapping a rustbucket for a rustbucket still stands.

JCS1

bradders1983 said:

rossp3090 said:

Yes but under the terms it states you can't have a car worth more than a £1000, so I've used parkers for the car I was looking at and it could be valued over £1000. 

I just want to make sure that I'm not shooting myself in the foot if I was to go for it.

You are being far too cautious. As I said, no car in Parkers with a maximum private value of £1050 is yielding anywhere near that sum as seized cars are bulk sold at auction for probably around half that. 

And thats before you even consider how they would even know. They dont sit there like private investigators checking up on everyone. Far too many new bankrupts coming through, its like a conveyor belt.

If you are seriously concerned, ring them and ask but as someone who had been through the process and took the absolute P with it, I wouldnt bother. I wont elaborate too much on a public forum, mind.

You would be amazed how many phone calls you receive from friends, family and neighbours reporting things to the OR.

But yes agree, swapping a car worth under £1k to another for similar value with the funds coming from elsewhere wouldn't be a problem.