Car in the garage - should I SORN it or tax?

Question

Ok, so my insurance runs out in October. My car is on finance. To cut a long story short due to a change in circumstances I cannot afford to renew my insurance policy (I can't REALLY afford to pay the finance anymore but I can temporarily manage). I am going to get a cheap runabout car which is cheaper to insure and run. Next year, around Easter time, I can pay the balance off on my car because I will have the funds. However, from October until then it's going to have to stand in the garage. Tax also runs out in October, should I tax it or declare it SORN? The tax is cheap (only £40 pa) but I'm not sure if it has to be declared SORN because it will be parked in a rented garage for 6 months. It is a newish car (57 plate). Will it stay on the car's "record" if I declare it SORN?

Answer 1

sorn it,that way you dont risk any damage to it before you sell it,and put the cash toward a run around

Answer 2

Typical situation you have like many other people,therefor,be patient and check out the resource here i found useful.http://car-insurance.bestips.info/car-in...

Answer 3

sorn it if you have no intention of driving on the road. why waste good money on tax

Answer 4

Despite the advice you're getting, I think you are going to have a problem with the finance company.  I doubt very much they will be pleased if you don't keep full coverage insurance on the car.  Once they find out you don't have it, they are likely to put their own coverage on to protect their interest and add it to your balance.

Best read your contract first before you make any choices like that.

Answer 5

If you are not going to renew the road tax on this vehicle then you must,by law, submit a SORN notice or you will still be charged the tax plus any fines etc.

Answer 6

So long as the car is to be kept on private land (whether your own it yourself or rent it from somebody else), then you are not legally required to have current tax.  If you do not renew the tax, however, you are obliged to make the SORN declaration.  

So as long as it will not be used or parked on a public street, there's no point in giving the government money for nothing.  Make the SORN declaration, and you'll receive a confirmation letter from DVLA within a couple of weeks.   If and when you come to use the car again in the future, you buy a new tax disk and the SORN declaration is then automatically canceled.  

If the car remains off the road for 12 months, then you will have to make a further SORN declaration to DVLA.  You will get a tax renewal/reminder form which gives you this option.

Answer 7

You seem to be in a very odd circumstance - you have a six month old car you can afford to tax & pay the finance on, but you can't afford to insure it.

You can, however, afford to buy, tax, insure & run a second car. Bizarre!

It's up to you, you can either tax or SORN it, legally it makes no difference.

How much is your insurance?

Thanks for the response. I suggest you shop around for insurance on your current car, if it's in the cheap tax bracket (there isn't one at £40 currently), then it can't be that expensive to insure - what exact car is it, and whereabouts are you?

Answer 8

declare it sorn...if it is in the garage it is obviously off road and you aren't going to surely be using it if it isn't insured so this is the cheapest option

Answer 9

If you do not insure your car and it gets stolen from the garage, you will still have to pay the finance on it. Check your finance papers, It may have to be insured if on finance. Sorn is only a Statutory Off Road Notice.

Answer 10

If the settlement figure on your car is more than it is worth, let them have it back!

What is the point in chucking more money into a car that is already loosing money faster than you can make it?

If you are intent on keeping it, garage it and declare SORN, it doesn't go on the cars history. But you really need to think this carefully about this, it is senseless paying for a new car that you can't afford, if you can afford a second-hand one. Idiots buy new cars....especially on finance, save yourself some money, no one is impressed with financial hardship!

Good luck

Answer 11

You can declare a car sorn if its not on public land.  So if its in a garrage I would declare it SORN when the tax runs out.  SORN is free and can be re-taxed whenever you like.

It will be on record as SORN but once re-taxed, it is fully legal.

Answer 12

If the car is on finance the vechicle still belongs to the finance company untill the outstanding ballance is paid for.

When you take out finance you sign a disclaimer which states that you have to keep the car insured and in a roadworthy condition ie taxed moted otherwise you are in breach or contract. Also if somthing happened to the car say caught fire or somthing then you will be liable for the full balance of the car.  You can legualy terminate the finance contract hand back the car and pay a small fee ie to cover for any loss the company suffered.

Answer 13

If you tax it, you dont need to declare Sorn, but if you dont, then you must declare sorn and never use it on the road. It shouldnt make any difference in the future as Sorn is cancelled as soon as you buy Tax.