www.iva.co.uk

If I have to downgrade my car and put the surplus into the fund can I choose where to sell the vehicle and make my own choice of a less valuble car ? thanks for any help
(-_-)_

Hi Denis
I dont think this should be an issue. As long as the car you purchase is below a certain value it should be fine. If your unsure check with your IP for further clarification.

Thanks

You are normally allowed a vehicle up to about £4,000 but even this can be exceeded if shown to be necessary. If creditors do ask for the car to be traded down you could offer 3rd party funds or an extension of the IVA and keep the vehicle while letting creditors receive their money.

Now this thread has got me on another worry fest. My car from the book is worth £6k but in reality with trading it in and buying a cheaper one I may not get much more than £4k for it.....how are the car valuations calculated?

Thanks x

Different methods are used by different IP's to value vehicles. Feel free to argue with your IP over any valuations done.

Paul

my ip used glasses valuers to see what my car was worth at time of the IVA proposal as my car was purchased via loan which luckily was included in the iva and i got to keep the car as the value had dropped dramaticaaly leaving it worth just over £2,000 but had paid over 6 only few months prior

I wouldn't worry too much about your car Cath. You need a reliable vehicle to use within your busines, and the value of your car is reasonable.

Not much hope for me unfortuately...both Fords and both nearly 10 year old.....doh!

Thanks Melanie...you know what it's like when you get the feelings of dread and another thing to worry about!

Our car was worth £8k when we went into the IVA and it was never an issue.

It certainly was an issue as I was going through the IVA process with DFD who informed me that I could only run a vehicle worth £4000 and that I would have to sell my car which I had valued myself at £8000, but which they valued at £9500 by referring to 'Parkers' price guide - and 'Parkers' price guides for absolutely anything always err on the side of generosity in my experience and don't reflect the sum you would actually get when sold. Instead of selling the car - my family stepped forward with £5000 pounds paid to DFD for creditors to buy a half share in the car to balance up the sums which DFD were happy with,but there doesn't seem to be a consistent set of rules within IVA companies for things like this !

It is always worth taking a second or even third opinion from different IP firms. Do not pay anything until you have agreed and accepted what is proposed and if in any doubt go elsewhere.

You are right Pelder in that IP firms have differing views so that is why you shop around.

Where on earth do these rules come from in DFD?? Declan - do you have a policy of only allowing clients cars to a value of £4,000? And, if so, on what basis is this applied - is this something you are required to apply by creditors or their voting representatives?

Where on earth do these rules come from in DFD?? Declan - do you have a policy of only allowing clients cars to a value of £4,000? And, if so, on what basis is this applied - is this something you are required to apply by creditors or their voting representatives?

Pelder agreed. Parkers guide is not the best to value a car...it's mainly for the retail/DIY market. Your car should of been valued by Glasses Guide if anything. I certainly would of went to 2/3 independant garages and got it valued.