DRO & new car purchase

Fishtank888

Hi, can anyone advise me please? my DRO started in February this year so my car asset limit was the £2000 mark. My car is now on its last legs 07 reg, will cost more to repair than it's worth. As the asset limit for cars went up to £4000 after I entered in to a DRO can I now just replace my car up to the new value without having to notify OR? Also my mum is offering to pay for the car, so if I do go ahead and keep it within the £4000 limit is it OK to be owned by myself not just the registered keeper? Thanks

Fishtank888

Also just to add as I started my DRO when the limit was 2000 am I stuck with the 2000 limit or can all of us on DROs now work with the new 4000 car limit?

fatbelly

I don't know (probably should) the official answer but the guidance now just ssays that a vehicle worth up to 4k does not count as an asset.

Of course if your mum buys the car and stays as owner then it doesn't matter anyway

sourcrates

Mum can remain the owner on any value car, you are free to insure it in your name as long as mum retains ownership.

ToxtethO'Grady

As FB and SC say it is not an issue if your mum retains ownership of the car.

Think we had this question a few times when it went up to £2K from £1K. From what I remember it is the asset limit when you signed the paperwork. So if it was £2K when you signed then legally that is your asset limit.