Maybe.... It will depend on what type of loan it is, some are unsecured, some are secured on the car, some are actually HP.
If it is a straightforward loan, that is unsecured then the OR can snaffle the car, BUT if it is essential for work they allow you to get a cheap replacement, see the link at the end of this post
If it is a Secured Loan, or HP, then no the OR cant take it, and if they agree you need it for work the repayments are permitted in your I&E. BUT depending on who the loan/HP is with they may take the car back (not so often nowadays if you can continue paying) This is because you do not own the car!
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Abbreviations used in DQF
My advice is guidance only, if you want the law then consult a lawyer!
(c) All Spelling mistakes are my own design, infringement of them may result me sulking!