Can my Mum buy me a car DRO

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T33totaller
T33totaller Posts: 13 Forumite
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in Bankruptcy & living with it
So my car has died, entered a DRO in Dec 2023.

My Mum has very kindly offered to buy me a car as a gift because I've just got a new job caring in the community and I need a reliable car.. 

Can she buy me a used one or is that not allowed? 

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  • fatbelly
    fatbelly Posts: 20,560 Forumite
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    edited 7 February at 3:01AM
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    She can buy you a car worth under 2k as long as the other one has been scrapped/sold

    Or (possibly better)

    She can buy a car for herself and let you use it. That can be any value she likes

    You just have to stay within the asset limits for the 12 months of the DRO
  • T33totaller
    T33totaller Posts: 13 Forumite
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    fatbelly said:
    She can buy you a car worth under 2k as long as the other one has been scrapped/sold

    Or (possibly better)

    She can buy a car for herself and let you use it. That can be any value she likes

    You just have to stay within the asset limits for the 12 months of the DRO
    So if she buys a new car, that she owns I can be the registered keeper and in charge of taxing and insuring myself?

    (she will be paying for new car and have evidence of her buying it it will be owned by her) then next January she can gift it to me and me become the owner?

    Was hoping to part ex mine in the process, would that make things more difficult?

    Also and sorry Fat belly for the quesions, but insurance.. do I need to request permission to take out insurance if it's £1000 over the year? Does that count as borrowing? If I have to ask who do I ask? Money wellness that arranged the DRO with me or IS?

    Thanks so much for your response. 
  • fatbelly
    fatbelly Posts: 20,560 Forumite
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    edited 7 February at 5:17PM
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    You can ask Money Wellness but you should be ok. The registered keeper is not necessarily the owner.

    Insurance just costs what it costs.
  • sourcrates
    sourcrates Posts: 28,911 Ambassador
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    She can do what she likes with her own money, insurance is a budgeted cost regardless.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • DullGreyGuy
    DullGreyGuy Posts: 10,620 Forumite
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    Is she in a position to pay in cash for the car or will she be getting finance? 

    If there is linked finance involved she will need to declare that she won't be the user of the car, many lenders aren't happy with this and will decline to lend. Obviously if it's a personal loan unlinked to the car she can do what she wants with it. 
  • T33totaller
    T33totaller Posts: 13 Forumite
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    fatbelly said:
    You can ask Money Wellness but you should be ok. The registered keeper is not necessarily the owner.

    Insurance just costs what it costs.
    But will I struggle being accepted for pay monthly insurance? Thanks 
  • T33totaller
    T33totaller Posts: 13 Forumite
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    DullGreyGuy said:
    Is she in a position to pay in cash for the car or will she be getting finance? 

    If there is linked finance involved she will need to declare that she won't be the user of the car, many lenders aren't happy with this and will decline to lend. Obviously if it's a personal loan unlinked to the car she can do what she wants with it. 
    She will be paying for it in cash. 
  • T33totaller
    T33totaller Posts: 13 Forumite
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    sourcrates said:
    She can do what she likes with her own money, insurance is a budgeted cost regardless.
    May I struggle to get it though because of the DRO and credit score? On pay monthly I mean. 
  • sourcrates
    sourcrates Posts: 28,911 Ambassador
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    T33totaller said:
    sourcrates said:
    She can do what she likes with her own money, insurance is a budgeted cost regardless.
    May I struggle to get it though because of the DRO and credit score? On pay monthly I mean. 
    I've been insolvent twice in my life and never once have I been refused car insurance paid monthly.

    Its a legal requirement to have insurance, and if you don`t pay the cover stops, the only reason you may be rejected is if fraud is suspected, but anyone in any form of insolvency should be ok.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Morfx
    Morfx Posts: 123 Forumite
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    sourcrates said:
    T33totaller said:
    sourcrates said:
    She can do what she likes with her own money, insurance is a budgeted cost regardless.
    May I struggle to get it though because of the DRO and credit score? On pay monthly I mean. 
    I've been insolvent twice in my life and never once have I been refused car insurance paid monthly.

    Its a legal requirement to have insurance, and if you don`t pay the cover stops, the only reason you may be rejected is if fraud is suspected, but anyone in any form of insolvency should be ok.
    Just a heads up, when I declared BR in 2021 I was refused monthly car insurance payments (No fraud) for 2022 and 2023.
    Note :- this was through a price comparison website.
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