DRO and buying a used car

Drohelpneeded · 1 May 2018 at 8:49AM

I'm looking to buy a car today.

It will be for £900, and I'm able to afford it from the sale of my current car, plus my mum giving me the difference.

I understand under my dro, I can't own a car that's more than £1000.

The current owner bought it from a dealer for £1200 2 years ago, and is selling to me for £900. It's cheap (even when they bought it through the dealer) due to cat d damage.

When I do the valuations online though, it's coming in between £1500-£2000. I put the reg number in so would have thought the online valuation would know it's a cat d? But maybe it doesn't. I think it's valued so high on there as it's low mileage for the year.

My dro doesn't end until the beginning of September. So should I avoid buying this car as I don't want the dro to be revoked? Or can my mum be the registered keeper and legal owner as a way around it, as she is contributing towards the car too? Or if that will risk me getting the dro revoked too then I obviously won't do that.

Thanks so much for any help

PaulL2 · 1 May 2018 at 11:40AM

I'm not an expert on DRO but I would have thought the car is worth whatever you paid for it (get a receipt in case asked). Or register it in your mum's name and then change the owner after your DRO!

Doesn't the valuations website say whether it takes cat d into account?

A few years ago I'd drive around in an old XR3i which the internet would say was worth £3k as a classic car but due to the bodywork needed I knew it was £1k!!

haggis0073 · 2 May 2018 at 10:28AM

if you plan to buy this car then make sure your mum pays for it and gets receipt for it in her name. This will make your mum the legal owner of the car and not you

Then register the car with DVLA in YOUR name

By doing it this way then your mum is the legal owner, and you are simply the registered keeper, basically the car will NOT be your asset

maxmycardagain · 2 May 2018 at 11:10AM

Pretty sure the policy holder (you) needs to be the keeper on the V5, unless its a lease or PCP car (sometimes) but if mum buys it and is the buyer on an invoice she is the legal owner.

srg0916 · 2 May 2018 at 6:50PM

Way i see it is that you can buy the car and run it like normal, as you only paid £900 for it then to you it's worth £900, okay so might be worth more but by the time you may for the running and repairs it probably not worth the interest to the OR anyways, Also I don't think they'll even have the man power to keep a check on you of what your buying. Chances are they won't even check to see if you bought another car..
Alternatively you could always just get the car in your mams name, have her setup insurance and you go on the insurance as a named driver.. legally giving you the ability to dirve the car but your not the owner or keeper therefore OR cannot touch it. You are simply "borrowing" the car.. after your discharged you can get the car into your name if you want?

luvchocolate · 3 May 2018 at 8:57AM

Please don't put yourself down as a named driver on a car you will be using all the time ,it's called fronting and is illegal.
Let your Mum purchase..keep receipt..register and insure it in your name.

PaulL2 · 3 May 2018 at 9:50AM

There's a difference between named driver for insurance purposes and registering the V5 document. Of course you should have your own insurance if you are the primary user, but who registers the V5 and who legally owns the car can be different an can be anybody you like, as long as it's declared to the insurer. Otherwise how would leases and car hire work. This issue could be avoided by his mum being the owner and keeper of the car and then gifting it to him after the DRO.

National_Debtline · 3 May 2018 at 11:16AM

Hi there,

You are right to be cautious in this situation and to start with, I would suggest you check the value of your potential new car at www.parkers.co.uk if you haven't done so already. If the valuation is higher than £1000, that is what is relevant - not what you pay for it. (If you are paying less than this, then you have got a good deal). When you entered into the DRO you agreed to inform the Insolvency Service of these kind of changes, and it is important to abide by the rules of the DRO.

If your mum is going to be the legal owner, then she really needs to be paying the full balance and have proof that it was her that paid for it. You could be the registered keeper, but you need to be careful even about contributing to the purchase of a vehicle that may be worth more than £1000, as you could have a beneficial interest in the car, and this makes things complicated. Good luck,

Laura
@natdebtline

DRO and buying a used car

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