I understand she may have to sell the car and purchase one under 5000 but I wondered if rather than selling it I could offer the difference of £2k and she keeps the car?
Alternatively I guess I could buy the car from her and then she would pay the balance above 5k to them?
Any help or suggestions on best way to achieve this would be great as she needs the car for work and childcare / clubs as I work over 60 miles from home and I'm not there daily from 6AM - 6PM to be able to take our daughter about. The car is 0% tax and very low insurance and also 2 years away from its first MOT. Buying a cheaper model would only up the monthly outgoings as she would have to pay more insurance, tax, mot and repairs.
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