Hi iwant2bfree.

Your relative could buy a car and allow you to use it.

Being the owner of a car is different to being the registered keeper and driver.

Hi TDA. Thank you for the reply. Would it be ok for my relative to buy the car and for me to pay them every month for the use of it? I suppose it's kind of like hiring it from them every month. Is this allowed in a TD? I don't want to break any rules. I've been hanging in there with my car for a few months now but it really is now nothing more than moving scrap. I really need a car for work and options are limited. Thanks in advance for any help.

There's no issue with rules iwant2bfree. I think a fair few members of the forum have reported doing this over the years.

Really I suppose there is just the practical issue about whether you'd be able to maintain your current trust deed payment with this extra financial commitment. If that's going to be tough you might need to open a dialogue with your trustee now.

Thank you TDA. That's been very helpful.

Hi iwant2befree

it's a good question & one with a number of variations. Generally if you need a car for work, then this should be an allowable expense. Idea being that you need to work, to earn money to pay the contribution.

In my experience there has never been an issue with this, so hopefully there won't be a problem.

Mark

Hi iwant2bfree,

I don't see it being an issue if you pay your family member for the use of the vehicle as long as it doesn't have an impact on your Trust Deed contributions.

As with most things in a Trust Deed best to contact your Trustee or relationship manager and run it past them.

I imagine you must be having to shell out a fair bit on maintaining your old car anyway, so it isn't too much of a stretch to justify payments for a newer one which would need less maintenance.

Thank you to all the experts for your replies. Lots of useful advice.