car costs in CCCS guidelines

[rickyg33]

The CCCS guidelines seem to make no provision for car tax or MOT or servicing/repairs or insurance.

A bit strange, since a car will cost at least £115 [up to £180] per year, which is £10 per month.

Then there's servicing, MOT and maintenance. What's the MOT rate these days - about £40 is it? So, unless you have a car less than 3 years old, you'll have £3.50 per month for MOT. Servicing and repairs might be £20 per month [if everything's straightforwards].

How about car insurance? A policy of £240 per year is £20 per month.

In summary, monthly car expenditure of:

£10 - car road fund licence
£25 - car MOT/service/repairs
£20 - car insurance

All the above are required by law. These really ought to be built into the CCCS guidelines. Anyone disagree? Petrol should be based on travel to work and back home costs, plus maybe a percentage on top for non-work related travel.

rickyg

[carlmcmullen]

I would normally put £15 car tax and £20 Car maintainece which are accepted by creditors.

Car insurance is what it is providing you can provide evidence and if considered high then an explanation.

As with fuel, providing you can give an explantion it is usually accepted.

You have to remember that they are guidelines and you need to include your expenditure as it is not what the CCCS say it is. And as i mentioned so long as you can justify it then creditors will accept it.

[melanie.n]

hi there in answer to your query the current CCCS guidelines for car expenditure which should be adhered to in IVA applications allow for:

fuel & parking £130
Car Insurance £50
car Tax £15
Repairs & Servicing £15 sole person £25 for couple or family, but individual circumstances are always taken into account for example with regard to fuel costs and any excessive travel to and from work

Hope this information helps

melanie n

[J-DOUBLEYA]

It should be noted that these are only 'guidelines' and not 'law' or indeed binding on all. HP costs are also recorded with a 'meaningful note' regarding the unexpired periods of repayment. The value of the car is also recorded !This is also the same in a VA.

Fuel - £130.00 / calender month - anything above this amount will require a 'meaningful note'
Car tax - there are no guidelines other than to record accurate details of the average monthly cost for such vehicle/s. Melanie, It is not correct to suggest that the amount allowed is dependant on the size of the family !(my source incidentally is impecable)
Servicing - again - there are no guidelines other than to apply common sense to the recording of such costs. For the average running costs, £40.00 / month should cover tax, MOT and servicing. Where the expenditure is higher because of high mileage then these must also be allowed for.
Car insurance is recorded as is. Where the amount paid appears to be high, such as if the client has endorsements or is a young driver then this is also recorded so that any creditor can make an informed decision regarding the viability of the offer made !

CCCS, CAB and ND all require their advisors or counsellers to ensure that all such costs are adequately and accurately accounted for without exception. I am sure that this is also the view in the fee charging fraternity regardless of the solution offerred.

I really dont know what all the fuss is about regarding the CCCS using guidelines or indeed anyone else using guidelines. As long as the best interests of the client is maintained and realistic sustainability is found.

I am sorry to say that I have seen many instances of inappropriate and failed IVA;s as indeed i have also come across people on DMP's that are not serving the purpose.

At least now there are guidelines in place that have been prepared and agreed in conjunction with the BBA, MAT and also I believe the R3 AIP.

anyway, this is only my opinion.

[r.t]

hi all,
my partner lives a 360 mile round trip from me and i do it once a week so my fuel bill comes to appx £200pcm, would this be acceptable at the creditors meeting or would they ask for proof or ask me to cut down on mileage??

thanks all

[J-DOUBLEYA]

I dont think that asking you to cut dowm 1 trip a week is acceptable. If you were on a DMP and a creditor objected I would o be inclined ttell them to stuff their objections and if they proceeded to issue a CCJ claim i am sure that a DJ would not object either. I am not sure how an IP would view this , perhaps someone will post a response !

[curiouscat]

On the subject of car expense..if I am currently paid 35p for each mile travelled (outside of normal travel to work), is this taken into account when the creditors consider monthly payment into an IVA? Surely, the expenses allowance from work should be used exactly for that purpose; fuel and running costs (mot, insurance etc)??
We are at application stage of an IVA..just curious thats all.

[MelanieGiles]

Your mileage allowance is paid to you for motoring expenses and should not be taken into account in your income and expenditure, but then neither should work related motoring costs.

[plasticdaft]

hi all,
my partner lives a 360 mile round trip from me and i do it once a week so my fuel bill comes to appx £200pcm, would this be acceptable at the creditors meeting or would they ask for proof or ask me to cut down on mileage??

thanks all

Just keep your fuel receipts and it really shouldnt be a problem.