Could a Campervan be classified as Deprivation of Assets?

UnderTheSun · 23 September 2018 at 3:01PM

I will try to be as brief as possible.

I am thinking of getting a loan (maybe from family) to buy a small campervan. My illness makes mobility and going out difficult for me and as a result I often feel trapped indoors (no garden, tiny flat, urban area). I am currently in receipt of ESA and housing benefit.

I am thinking a campervan in the region of £6-£9K so that I could basically be outside for a few days every month. I currently have a small car worth about £3k and about £1K savings, nothing else.

However, my concern would be - if the DWP found out about the second vehicle, could they request that I sell it and pay them this money, for example if they considered it an unnecessary additional asset or capital?

Thanks if you have any ideas or experience on this. I am not sure what to do for the best.

huckster · 23 September 2018 at 3:18PM

DWP would not be interested in a campervan you bought with borrowed money.

The question you should ask yourself, is whether you could afford the loan repayments, runnings costs, Insurance etc out of your benefit payments. With the other living costs you have, I should imagine your finances would be severely stretched.

w06 · 23 September 2018 at 3:30PM

As Huckster says you're not depriving yourself of capital if you didn't have the capital in the first place.

Running two vehicles is expensive though. Two lots of insurance, road tax, MOT, maintenance and repairs. Having a camper is great, my main vehicle is an 11 year old converted van, but it's also my only vehicle, I couldn't afford to run it and a car.

UnderTheSun · 23 September 2018 at 3:30PM

Yes, the money thing is a question. If it was a family loan at very relaxed terms or even partial gift, it might be possible. The insurance should only add another £300 or so to my current insurance I think, but I haven't gone into the detail as yet. Repairs and maintenance could be a problem though. (Maybe I would sell the car if it came down to it).

But I am genuinely scared the DWP might come and take it off me, saying I don't need two vehicles (even though its for a specific purpose)..

UnderTheSun · 23 September 2018 at 3:32PM

Thanks for your replies Huckster and W06, just read the second one.

poppy12345 · 23 September 2018 at 3:36PM

UnderTheSun wrote: »

But I am genuinely scared the DWP might come and take it off me, saying I don't need two vehicles (even though its for a specific purpose)..

They won't do that. I'm not sure why you think they would. Although i agree that having 2 vehicles on the road is very expensive. A lot of working people wouldn't be able to afford that.

UnderTheSun · 23 September 2018 at 3:44PM

Well it sounds pretty unanimous, I shouldn't worry about it from "asset" point of view. I'll have to think of the £ side of it now. I'd forgotten about tax - my current car tax is only £65 per year. I suspect it might be alot more for the van. Maybe sell the car then. Anyway, at least I can start thinking about it and looking into it ....
thanks again

w06 · 23 September 2018 at 3:51PM

edited as looks as though it's changed

my van was £230 last year, that sort of ball park for a mid noughties van, https://www.gov.uk/vehicle-tax-rate-tables/other-vehicle-tax-rates

PasturesNew · 23 September 2018 at 3:59PM

They're expensive beasts, not for "regular people with normal levels of income". They are for people with higher incomes and/or the skills to do most of the simple maintenance/etc themselves, or have close friends who do it for nothing.

The annual servicing might be £200 too, there's not just servicing - they also check the electrics, water, heating systems for safety.

There's insurance, tax, MoT.

£6k over even 6 years without paying interest is £20/week.

Then you have to fill it up and drive it somewhere... say 30p/mile if you go very easy... so £6 return for a 10 miles there/back journey. And, probably/often, parking fees (£5-15/time)

So, even if it sat doing nothing it'd cost £25+ per week to have it sitting doing nothing... then if you take it 10 miles there/back and park it there's another £10-15 gone.

You might be better off paying for a taxi to attend some local groups that have occasional daytrips in a minibus.... better use of money to achieve the same objectives: to get out. All without the ongoing liability of a rotting vehicle cluttering up your road/driveway/life.

Google for all the local lunch clubs etc and see who the Lions Club support .. many of the Lions Clubs have bought minibuses for people/groups to get out/about. And when I said taxi above, some of the (often church) groups supported by the Lions actually do a "pick up" service for about £2. Also investigate Community Bus services.

You get mates and transport if you use what's out there.

UnderTheSun · 23 September 2018 at 4:45PM

Thanks for your ideas Pastures, but sadly I don't think the 'Day Trip and Mates' thing would work for me - I'm too ill to cope with all of that - hard to explain and go into, but thats the reality. The costs and complications of a van do sound significant though and I would most likely have to sell my car, I'll just have to see!!!!

pmlindyloo · 23 September 2018 at 5:00PM

Just a 'heads up' because I don't think it has been mentioned.

If you do go ahead and some kind person lends/gifts you a large sum of money DO NOT allow them to put it in your bank account/post office account. Large sums of money will eventually be noticed by the DWP and there may be an investigation which will be a pain, cause stress and be time consuming proving where the money came from/what it was spent on/ and why it was needed.

The easiest way is for someone to directly buy the campervan for you and you set up an arrangement to pay them back/whatever. That way it will never 'hit' your bank account and you will avoid any kind of investigation.

Could a Campervan be classified as Deprivation of Assets?

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