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Original poster

Should we lend the money?

23 replies

Spacebound · 25/10/2015 17:40

Hi everyone,

Just hoping for a bit of advice please? We have been approved for a car loan and can afford the repayments no problem. Rather than paying the interest on the loan my husbands auntie has offered to lend it to us and we can pay her back monthly over 5 years (she is very rich). We would end up saving £1200 by lending it from her. A few things are putting me off, firstly she is the type to hold it over us. My husband also thinks that if one month we have a little extra and spend it on our house for instance, that she may be funny with us. Also we don't want anybody else in my husbands family to know we have borrowed it from her (they like to look down on us) we couldn't guarantee she wouldn't say something/slip up!

Sorry for going on in just after a bit of advice and others opinions, what do you think?

Thanks!

OP posts:

howtorebuild · 25/10/2015 17:43

I should think she would be annoyed if you miss a payment, especially loaning money out on such generous terms that saves you over a thousand pounds.

PotatoQueen · 25/10/2015 17:47

I don't think op meant missing a payment, more that the aunt would be funny about the extra money being spent on the house rather than given to her as an extra payment to pay it off quicker?

Personally, I'd say don't do it, borrowing from relatives can cause problems, I'd rather pay out the extra over the term.

Original poster

Spacebound · 25/10/2015 17:47

We would never need to miss a payment. What I meant was we would pay her that month but then also might have a little extra money that month and spend it on something else!

OP posts:

Bearbehind · 25/10/2015 17:49

The title of your thread is very misleading as you are borrowing the money not lending it.

That aside- I wouldn't touch your DH's offer with a barge pole.

Is a £1,200 saving worth being beholden to her? It wouldn't be to me.

LineyReborn · 25/10/2015 17:50

How would she know?

And no, I wouldn't borrow money from her. I like my privacy too much.

Bearbehind · 25/10/2015 17:51

^^ DH's auntie's offer

marzipancustard · 25/10/2015 18:01

Don't do it! It's not worth the potential problems in the family to save the interest money (if you can afford to pay it)

howtorebuild · 25/10/2015 18:19

Oh I see, why would the Aunt know you had extra money one month?

I have heard people use the terms as OP does, in a different way as a form of slang, rather than conventional English. for example they may say "borrow me some...", "was" instead of "were" and "of"instead of have. You allow hear such slang on TOWIE or from Marvin and Rochelle on This Morning.

LineyReborn · 25/10/2015 18:52

Yes, where I'm from the words lend and borrow are used interchangeably.

tribpot · 25/10/2015 18:56

This sounds like a recipe for disaster, I really wouldn't do it. I would thank her for the kind offer (not that I'm certain it is that kind) but say you prefer not to mix family and money.

ThroughThickAndThin01 · 25/10/2015 19:00

Nope, do it professionally, not through family.

tedhis · 26/10/2015 06:26

a 5 year loan on any car is a poor idea. Even a new car maybe be suffering after 5 years and a second shane one will probably have bitten the dust. 3 years maximum- borrow less and get a cheaper car?

MrsDeathOfRats · 26/10/2015 06:32

Is the aunt going to be extremely hurt and put out if you don't borrow the money?

So either way it's not a good situation.
How did the offer come about in the first place?

I wouldn't do it. Money and family don't mix!

Hissy · 26/10/2015 06:34

Shop around, get a better finance deal, but do not take the aunt's loan.

hebihebi · 26/10/2015 06:35

You don't exactly sound as if you want to do it so I wouldn't.

WeAreEternal · 26/10/2015 06:47

I have always believed that one of the most valuble lesson in life is never to lend or borrow money from family or friends.
Nine times out of ten all it ever does is destroy the relationships of those involved.
My rule is always, if you can afford to give it to them give it is a gift, if they return it that's great if not it's fine as it was a gift to help a friend in need.

If you know the aunt would be difficult about it eventually why risk it for the sake of £20 less a month.

fieldfare · 26/10/2015 06:48

I would never borrow money from anyone, it can really sour a relationship.

Get it organised through a proper finance company, and I agree with whomever said that 5 years is too long on a car loan. I'd be hesitant in taking it out for more than two years tbh.

PennyPants · 26/10/2015 09:00

As you have an alternative I would say no. Never borrow money unless you really have to.

howtorebuild · 26/10/2015 09:16

In the list of Do and don't life lessons, I gave my children I told them only borrow for a mortgage and student loan. Anything else you need to find quite way around the problem.

lovelyupnorth · 26/10/2015 12:16

for me i'd borrow it from the bank not family and over the shortest term possible.

though do ignore the bollocks statement that a second hand car would be dead after 5 years. how many 09-59 or before cars are out on the road.

a normal car should last at least 10 years if its serviced and looked after.

i'd avoid borrowing from family

NickyEds · 26/10/2015 21:57

£1200 over 5 years isn't worth this auntie having hold over you or any right to an opinion on your finances.

Choughed · 26/10/2015 22:57

I think a five year finance deal is too long on a car. Do shop around.

And no, too complicated to borrow money from relative.

uselesswithmoney · 26/10/2015 23:08

I don't think I would if she was potentially going to be funny with you in any way whatsoever. If you can easily pay back a lender then I would pay the extra and keep it purely business with finance company or bank.

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