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Scottish Trust Deed Forum
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Topic starter
18/01/2015 4:34 pm
Hi,
Can anyone confirm if you take a car on HP while in a trust deed for say £5k it's ok as it is not an asset as you won't own the vehicle until it's paid off?
Take it the £3k limit does not apply as you do not own it?
Bit confused about it.
Thanks
18/01/2015 4:51 pm
Hello Commando1.
A car purchased with that type of secured finance will not be yours until such time that the debt has been repaid.
Accordingly, in most circumstances, it would not be viewed as an asset unless it became yours prior to discharge.
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Topic starter
18/01/2015 5:05 pm
Thanks TDA
I still have 14 months left an a leased car.
Just in case I can't get another lease deal with current company I wanted to check that if I took an HP deal elsewhere that kept me within the £260 a month I currently pay that would keep my trustee happy as well as it is within budget.
18/01/2015 5:50 pm
Hi Commando1
If it's a normal lease, then title will not normally pass at any point and therefore would not be an asset.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
18/01/2015 9:11 pm
Best check with your Trustee, Commando1, just to be on the safe side.
If your trust deed is due to run on past the point that your lease was due to finish it is possible that your trustee had factored in a rise in your contributions at that point.
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