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Thread: Purchasing a car using PIP benefit.

  1. #1
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    Purchasing a car using PIP benefit.

    I have been granted PIP mobility enhanced rate. I see from an earlier post on here that it was possible to use this to buy a second hand car. Is this still the case as it said sainsburies Bank were one company that did this but they deny any knowledge of it and won't take benefits income for loans unless you are fit for work.

    any help would be much appreciated as I cannot see anything on the motability site either.

    my reasoning is that I don't need a new car and having an asset (even tho depreciating) would seem a better option. also on motability you lose your NCB and cannot get many vehicles.

  2. #2
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    Probably cheaper to have a new car, as insurance and servicing repairs and tyres are covered. I believe some companies accept nab from being a mobility customer. You can get a smaller car and still get about £10 week on mobility.
    Think you need to contact notability re the loan to buy a second hand car, give them ring Monday.

  3. #3
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    Quote Originally Posted by MGguy View Post
    Probably cheaper to have a new car, as insurance and servicing repairs and tyres are covered. I believe some companies accept nab from being a mobility customer. You can get a smaller car and still get about £10 week on mobility.
    Think you need to contact notability re the loan to buy a second hand car, give them ring Monday.

    yes, I will ring. Couple of points. I need a large estate and don't do much mileage (maybe 3-5k). also ncb from motability basically gives you the same figure as no ncb when you insure again having researched. so the issue is 9k mobility allowance over three years plus an ap of 3-4k on something you never own doesn't make economic sense. outlay 12-13k for three years and then give car back... how does that make sense ?

    only makes sense if you want a nova/fiesta/etc etc and do 15,000 miles a year.

  4. #4
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    PIP benefit will not be taken on its own to secure a loan, but will be added to existing income to create the new income amount. Any loan will then be considered on this new total.

    Have you approached your own bank for loan?
    They already know your income and expenses, and can probably advise you without conducting a 'full search'.

    When we approached our bank, they 'suggested' a loan of around 20% of our total income was 'likely' to be approved, but not at their lowest interest - but nowhere near the highest either; and over a four-year term. (We haven't yet made a decision on this, so don't know the outcome for definite.)

    Our income for their consideration was ESA, PIP and my (relatively small) personal pension; ie, no employment income. No doubt your circumstances will be different, but the bank may well be worth trying.

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    Define "large estate", you can get an Astra/insignia/golf estate for AP under 250, but used your whole weekly allowance.

    Yes, you, Wouldn't have an asset but you would also have to sort any repairs (more likely on a second hand car) etc out yourself.

  6. #6
    Quote Originally Posted by dvdgremlin View Post
    I have been granted PIP mobility enhanced rate. I see from an earlier post on here that it was possible to use this to buy a second hand car. Is this still the case as it said sainsburies Bank were one company that did this but they deny any knowledge of it and won't take benefits income for loans unless you are fit for work.

    any help would be much appreciated as I cannot see anything on the motability site either.

    my reasoning is that I don't need a new car and having an asset (even tho depreciating) would seem a better option. also on motability you lose your NCB and cannot get many vehicles.
    Whilst Motability used to offer it's clients the chance to purchase a second hand car through it's scheme, it no longer does so. It now concentrates on it's leasing of new cars, scooters or powered wheelchairs. I'm not sure what Sainsbury's Bank has or had to do with such loans, but perhaps someone else will know.

    The option for hire purchase, using your monthly payments to hire a vehicle and the option to then purchase the vehicle after three years is there. Or if that's still too expensive, you may be able to extend the lease after 3 years, with the same car, then purchase it knowing you've had several years of maintenance and care of your vehicle.
    Obviously only feasible whilst you are entitled to the Enhanced rate Mobility element. That way you have a new car that you know has been well cared for and has depreciated whilst you use it.

    As regards "no claims bonus". Whilst Motability own the HP car you lease, you may not be able to use your NCB with future insurers if you leave the scheme. I believe that RSA who provide insurance, may give you a record of your claims history with them, but obviously it would be up to any insurers whether they were happy to accept this or not.
    Last edited by clareb1611; 26-06-16 at 14:33.

  7. #7
    Quote Originally Posted by dvdgremlin View Post
    so the issue is 9k mobility allowance over three years plus an ap of 3-4k on something you never own doesn't make economic sense. outlay 12-13k for three years and then give car back... how does that make sense ?.
    Pardon my ignorance but what's AP?

  8. #8
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    Quote Originally Posted by clareb1611 View Post
    Pardon my ignorance but what's AP?
    just a guess, in the context of this thread it could be (added/approximate payment).

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    Quote Originally Posted by RobcarerT View Post
    Define "large estate", you can get an Astra/insignia/golf estate for AP under 250, but used your whole weekly allowance.

    Yes, you, Wouldn't have an asset but you would also have to sort any repairs (more likely on a second hand car) etc out yourself.
    lol I'm sorry but you seem to have an over inflated opinion of your own self importance in my own decision making and opinion. Astra and Golf are not large estates and you can only get a diesel insignia. so what's next ? you suggest an suv or a lawnmower ? as for car repairs ,... do you think I have never had a car before ?

    anyway thanks for your contribution

  10. #10
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    Quote Originally Posted by clareb1611 View Post
    Pardon my ignorance but what's AP?
    its an advance payment to top up the allowance for cars which are more expensive than the value of the allowance.

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