Welcome to the forum Trotter88.

The risk is that you're deemed to have acquired an asset and that this then puts an obligation upon you to pay an extra amount over, usually once your regular payments have come to an end.

Of course, if your dad were to own the new car and allow you to use it there's no issue. Being the owner or the keeper of a car can be different things.

If someone pays for a car (and has documentary evidence of that) it would usually seem reasonable that they're the owner.

What's going to happen with the old car?

By the way, you can read more about cars and trust deeds at:

https://www.trust-deed.co.uk/vehicle-car.html

So with a difference of £1500 for example I would be required to make payments to cover that at the end up the 4 years? I would be worried that as soon as I bought the car and told them they would make me sell it or something.

The V5 would be in my name but i'm not sure what documents state who owns it but it would certainly be my dad paying for it with his money. If i were to create a receipt and have it signed by the seller and my dad to state who bought it would this be enough? Would this then mean I don't have to declare anything as I personally have not acquired any asset?

The old car is being sold privately with my Dad receiving the full amount.

The V5 keeper's document is certainly NOT proof of ownership.

If your Dad is paying for it, and he has proof of purchase, it's his car - who he lets drive it is up to him.

You would of course be responsible for any parking fines etc but as far as acquiring an asset, you aren't. It isn't any different from driving a company car etc.

Thank you for your advice.

Am I correct in assuming then that there is no need to inform my Trust Deed company as both cars will have been purchased by my dad and therefore owned by him. I have printed of a sheet from the AA which both parties sign when buying/selling a car so I trust this would be enough evidence if needed provided my dads details are down as buyer.

Hi Trotter88.

I think that you should speak to your trustee. I doubt that there will be any issue and that you'll be able to use the new car one way or another, but best to keep everything demonstrably above board.

The main reason I say that is it sounds like your trustee might believe that the first car is owned by you? Presumably that's why it was valued at the start? If that's the case, they might have an interest in the proceeds of this car if it were actually sold.

Thanks I think you might be right in that they believe I own the car. I never really realised the importance of it as they asked if I had a car and I said yes and when the value came back at £2500 they said as it's under £3000 it doesn't need noted. Would they still possibly have an ineterest in it on that basis or could I just prove it was paid with my dads money if the question came up.

Hi Trotter88.

The question really is whether they'd take any interest in the proceeds if the car was actually sold.

That's perhaps a slightly different thing to having an interest in a car at the start of a trust deed that they'd expected you to continue to use.

I can't imagine that this is going to turn out to be a big issue, but I wouldn't do anything without talking things through with your trustee first so you're sure everyone is comfortable with the plan and that there will not be any unpleasant surprises.

Thank you for your advice.

I have e-mailed my trustee so i will see what they say.

Hi,

I have been in touch my my trust deed company but confused as to what they are saying. I am being told that due to me being in a trust deed then if my name is on the V5 I am therefore the owner of the vehicle regardless of who paid for it. Is that right?

I am being told that the V5 has to be in my Dad's name but as I work in insurance I know that it is almost impossible to get insurance on a vehicle which you are not at least the keeper of.

Hi Trotter88.

In general terms, being the keeper of a vehicle (on the V5) certainly does not make you the owner.

Obviously the keeper of a vehicle would very often be the owner of it, so I can see that solid evidence that someone else in fact is the owner might perfectly rightly be requested by a trustee.

Some of what you're reporting you've been told feels unfamiliar to me. Interested to hear what David and/or Kevin think.

I have copied and pasted below what I have been advised.

The forum post she mentions is something i sent her from a police website explaining that the V5 document is no proof of ownership and the difference between owner and keeper.

"I understand what you are saying but if your dad buys a car which is in your name then this is your vehicle and not your dads. There is no ownership document for a vehicle, only a registered keeper document.

I have read the forum post you sent however, this does not relate to the owner of vehicles in the instance of insolvency proceedings. If your dad buys a car for you, this has been gifted to you and you then own it. Regardless of who paid for it, the vehicle becomes yours and in a Trust Deed or Sequestration this is then classed as an asset of your estate if it holds a value of more than £3,000.

If the vehicle was purchased and registered in your dads name, this is classed as a vehicle which you do not own but have use of. The Trustee has no interest in this. Also, if the vehicle has a value of less than £3,000 the Trustee has no interest in it, even if it is registered in your name"

Still feels unfamiliar to me Trotter88.

Of course if your dad gives you a car then it's your car.

But if he hasn't given it to you...

As before, interested to see how David and/or Kevin see this.

There is no doubt that being registered as the keeper of a car does not necessarily mean that you own it. I am not aware of any legislation or case law that says that this is any different in an insolvency situation, so I am not sure what your trustee is basing this assertion on. Perhaps you should ask them this question and see if they can back it up? I suspect not.

Thank you both for your advice.

I got back in touch yesterday afternoon and asked her to confirm to me that if my name is on the V5 then because of me being in a trust deed, this document that states it is not proof of ownership suddenly becomes a proof of ownership document.

I have now received a reply back which she is now retracting her previous advice and telling me that as long as I can provide proof of purchase in my dad's name then the trustee won't have any interest in the car.

As the car is a private sale we won't get an invoice as such so I have printed off a buyer's/seller's contract from the AA website which should hopefully be sufficient.