Selling car while on universal credit

slowcars

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Spoonie_Turtle

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yes but unless you've disposed of capital over a means-tested benefit threshold to buy the car whilst claiming the benefit or shortly before, then the subject of what is reasonable for you is currently moot.

slowcars

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yes but unless you've disposed of capital over a means-tested benefit threshold to buy the car whilst claiming the benefit or shortly before, then the subject of what is reasonable for you is currently moot.

Of course, I have. As an example, my current car owes me in equity (part exchange value over finance outstanding) approximately £29,000 which I have no option but to reinvest in another car as a deposit. If I take the equity out, then I would be penalised for having combined capital savings of approx.£37,000. As such I have to do these deals every 3 years so as to keep the money in an exempt asset. And in a car that carries with it a full manufacturer's warranty.

tightauldgit

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yeah that's not what 'needs' means. Personally think someone on a means-tested benefit that bought themselves a new £50k car is taking the !!!!!!, but each to their own. I would call it deprivation of assets but I don't know if the government do. 

Spoonie_Turtle

slowcars said:

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yes but unless you've disposed of capital over a means-tested benefit threshold to buy the car whilst claiming the benefit or shortly before, then the subject of what is reasonable for you is currently moot.

Of course, I have. As an example, my current car owes me in equity (part exchange value over finance outstanding) approximately £29,000 which I have no option but to reinvest in another car as a deposit. If I take the equity out, then I would be penalised for having combined capital savings of approx.£37,000. As such I have to do these deals every 3 years so as to keep the money in an exempt asset. And in a car that carries with it a full manufacturer's warranty.

I don't understand the point you're making.  If you had that in cash savings and used it all to buy a car, then yes they would be asking where all that money went.  But that's not the case, unless I'm very much misunderstanding something.

You mention having a car worth £50,000 on credit which you presumably pay out of your income rather than dipping into savings over £10,000.  What you do with your income is irrelevant.  I don't know when this car arrangement started but if you didn't pay a chunk of money out of savings over £10,000 whilst claiming Pension Credit or shortly before then it's irrelevant.

slowcars

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yes but unless you've disposed of capital over a means-tested benefit threshold to buy the car whilst claiming the benefit or shortly before, then the subject of what is reasonable for you is currently moot.

Of course, I have. As an example, my current car owes me in equity (part exchange value over finance outstanding) approximately £29,000 which I have no option but to reinvest in another car as a deposit. If I take the equity out, then I would be penalised for having combined capital savings of approx.£37,000. As such I have to do these deals every 3 years so as to keep the money in an exempt asset. And in a car that carries with it a full manufacturer's warranty.

I don't understand the point you're making.  If you had that in cash savings and used it all to buy a car, then yes they would be asking where all that money went.  But that's not the case, unless I'm very much misunderstanding something.

You mention having a car worth £50,000 on credit which you presumably pay out of your income rather than dipping into savings over £10,000.  What you do with your income is irrelevant.  I don't know when this car arrangement started but if you didn't pay a chunk of money out of savings over £10,000 whilst claiming Pension Credit or shortly before then it's irrelevant.

The car is not all on credit, credit is but a very small part. It started before 2013 (first PC claim) It has continued in this way 5 times since with the equity being put back into another car. Yes the finance comes out of our income - State Pensions + benefits.
I maintain our savings at less than £10,000 for obvious reasons. It does sound ridiculous that I cannot have any access to this equity for fear of being penalised for excess savings. So in simple terms and whilst on PC it would be extremely silly to buy a much cheaper car and have the difference to use on other things. 
I was attempting to show to the OP that selling/disposing etc a car and putting the proceeds in a bank could cause issues re excess capital if claiming a means tested benefit.

Spoonie_Turtle

slowcars said:

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

Spoonie_Turtle said:

slowcars said:

calcotti said:

What is reasonable?
Even on the Motability site where they have a limit of £30,000 or you can add your own money to it to get a better one. Is £30,000 reasonable?
I'm on benefits (Pension Credit) and run a 2-year-old £51,000 BMW (part on credit). All of my cars in the past that I have owned are reasonable to me.

Depends on whether the only one that meets your needs is the £30,000 one or whether a cheaper one would do the job.  Obviously if using Motability they are more likely to believe/accept reasoning based on disability-specific needs.

But generally if someone is needing to live off means-tested benefits, they would be expected to buy a used car that meets their needs.

So, on that basis I should (by the DWP definition) be driving a second-hand Dacia Duster? All cars could match my needs. However, my personal needs are that all of my cars give me performance, quality and comfort and I am on a means tested benefit.

Yes but unless you've disposed of capital over a means-tested benefit threshold to buy the car whilst claiming the benefit or shortly before, then the subject of what is reasonable for you is currently moot.

Of course, I have. As an example, my current car owes me in equity (part exchange value over finance outstanding) approximately £29,000 which I have no option but to reinvest in another car as a deposit. If I take the equity out, then I would be penalised for having combined capital savings of approx.£37,000. As such I have to do these deals every 3 years so as to keep the money in an exempt asset. And in a car that carries with it a full manufacturer's warranty.

I don't understand the point you're making.  If you had that in cash savings and used it all to buy a car, then yes they would be asking where all that money went.  But that's not the case, unless I'm very much misunderstanding something.

You mention having a car worth £50,000 on credit which you presumably pay out of your income rather than dipping into savings over £10,000.  What you do with your income is irrelevant.  I don't know when this car arrangement started but if you didn't pay a chunk of money out of savings over £10,000 whilst claiming Pension Credit or shortly before then it's irrelevant.

The car is not all on credit, credit is but a very small part. It started before 2013 (first PC claim) It has continued in this way 5 times since with the equity being put back into another car. Yes the finance comes out of our income - State Pensions + benefits.
I maintain our savings at less than £10,000 for obvious reasons. It does sound ridiculous that I cannot have any access to this equity for fear of being penalised for excess savings. So in simple terms and whilst on PC it would be extremely silly to buy a much cheaper car and have the difference to use on other things. 
I was attempting to show to the OP that selling/disposing etc a car and putting the proceeds in a bank could cause issues re excess capital if claiming a means tested benefit.

That is true, but the OP was evidently already aware of that and they were advised according to their question (including paying off some debt) in the first response on the thread.

NedS

slowcars said:

The car is not all on credit, credit is but a very small part. It started before 2013 (first PC claim) It has continued in this way 5 times since with the equity being put back into another car. Yes the finance comes out of our income - State Pensions + benefits.
I maintain our savings at less than £10,000 for obvious reasons. It does sound ridiculous that I cannot have any access to this equity for fear of being penalised for excess savings. So in simple terms and whilst on PC it would be extremely silly to buy a much cheaper car and have the difference to use on other things. 
I was attempting to show to the OP that selling/disposing etc a car and putting the proceeds in a bank could cause issues re excess capital if claiming a means tested benefit.

How would you be penalised? You would simply have the means to support yourself and no longer need to be dependent upon the support of the state at tax payers expense. Surely that is a positive thing as we all strive to get ourselves off of benefits and be able to independently support ourselves. I cannot see that you would be penalised in any way or would suffer any undue hardship unless I am missing something?

diystarter7

calcotti said:

tifo said:

diystarter7 said:....The house you live in and your car, the main car do not count as capital unless you sold them.. 

What if you need the money from the house or car to buy another one? Can DWP tell you to buy a less expensive car?

If you sell your existing house and intend to purchase a new property with the proceeds then they can be disregarded while the new property is acquired (the disregard is initially for six months but can be extended).

I think if you had a car worth £100,000 and were claiming benefits then you would be expected a car that was reasonably required to match your needs. So buying a new 'classic' car or such could be considered deprivation of capital.

Hi

Thankfully, me or the family has never had to claim benefits but what you said re 100k car - do they ask what car you own or have a car worth in excess of xx quid ?
Thanks

NedS

diystarter7 said:

calcotti said:

tifo said:

diystarter7 said:....The house you live in and your car, the main car do not count as capital unless you sold them.. 

What if you need the money from the house or car to buy another one? Can DWP tell you to buy a less expensive car?

If you sell your existing house and intend to purchase a new property with the proceeds then they can be disregarded while the new property is acquired (the disregard is initially for six months but can be extended).

I think if you had a car worth £100,000 and were claiming benefits then you would be expected a car that was reasonably required to match your needs. So buying a new 'classic' car or such could be considered deprivation of capital.

Hi

Thankfully, me or the family has never had to claim benefits but what you said re 100k car - do they ask what car you own or have a car worth in excess of xx quid ?
Thanks

No, personal property is disregarded.