DRO and Car

I am going to shortly enter into a DRO (presuming it gets accepted) but I am unsure what to do regarding a car. Currently I have a car worth about 3000 with about 5000 outstanding…..presumably I can’t keep this car and keep making the payments? If not, can I simply ask the HP company to come and get it and tell them what I’m planning or do I have to go through the indignity of repossession? 


  • MalMonroe
    MalMonroe Forumite Posts: 5,783
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hi, this is what Citizens Advice says -


    Cars are not supposed to be worth more than £2k but as the info in the link says, do discuss this with your adviser. Doesnt have to be a Citizens Advice adviser either. 

    I've been through a DRO and would always advise people to go through one of the free debt help agencies, if they aren't already doing so. I used *StepChange and they were brilliant. When I applied, we were only allowed to have a car worth up to £800 and fortunately I had an old banger worth around that, so it was fine for then. But have a word with an adviser and see what they advise. 

    *There's also Citizens Advice and National Debtline.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • fatbelly
    fatbelly Forumite Posts: 19,234
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Unless there are unusual circumstances the HP payment would not be an allowable expense.

    Getting a third party to make the payments would be acceptable to the DRO team but there could be a problem if the account remains in your name and the agreement completes within the 12 months

    Because of the way a DRO is set up I would recommend terminating the agreement now and getting a final value of the sum owed to the HP company, to put in the DRO.

    If taking the HP expense out of your expenditure results in a surplus income >£75, or if adding the HP debt takes your total debt >£30000, then you need to discuss this with your DRO intermediary.
  • Ok thanks, I think it’s best to just get it settled and cleared with the DRO….I don’t want to come out of it still
    owing money on HP
  • fatbelly
    fatbelly Forumite Posts: 19,234
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Yes get it terminated. Get the figure (which may take a couple of months), then put it in the DRO, assuming you still qualify.

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