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Original poster

Should I get a loan for my dd

118 replies

notthisagainforest · 18/03/2023 15:35

My daughter is 22 and has a good job. She lives at home and has had an accident in her car that wasn't her fault. The car is a write off. She wants to buy an Audi a1 She has applied for a ten thousand loan and the interest rates are very high. I could get a low interest loan with my bank and give her the money. She would pay me each month for 4 years. I don't earn a high salary and I don't have any debts atall. Would you do this for your daughter or would you let them take the loan out in their name at a higher rate ? She hasn't asked me but I'm thinking of offering but I don't know if this is the right thing to do. Please advise.

OP posts:
Whycanineverever · 18/03/2023 15:38

Why can't she buy something cheaper? How much is she getting for the old car?

Youvebeenseeingsos · 18/03/2023 15:39

Nope.
I’d encourage them to get a cheaper car with the insurance money and maybe a very small loan.
A £10,000 loan for a car at 22 is ridiculous.

Hoppinggreen · 18/03/2023 15:40

Nope

WeeOrcadian · 18/03/2023 15:40
  1. Why does she need a 10k car?
  2. If she has a good job, why can't she save a buy a more reasonably priced car?
Lastnamedidntstick · 18/03/2023 15:42

Nope.

she can get a cheap run around with no loan.

why does she need an Audi A1?

does she have any plans to buy a house or move out? That 10k loan could prevent it.

Original poster
notthisagainforest · 18/03/2023 15:45

Ok thanks. She doesn't need an Audi a1 she wants one She is getting 3.500 for her write off and she doesn't want a run around she says she wants a nice car

OP posts:
Original poster
notthisagainforest · 18/03/2023 15:46

Lastnamedidntstick · 18/03/2023 15:42

Nope.

she can get a cheap run around with no loan.

why does she need an Audi A1?

does she have any plans to buy a house or move out? That 10k loan could prevent it.

At the moment no she doesn't want to move out. Maybe in four years she would but the loan would be paid by then I guess

OP posts:
MillicentForceIt · 18/03/2023 15:47

Yes I would, but think through the worst case scenario. What if she loses her job and can't pay you back- will you manage?

NameChangeSadness · 18/03/2023 15:48

notthisagainforest · 18/03/2023 15:45

Ok thanks. She doesn't need an Audi a1 she wants one She is getting 3.500 for her write off and she doesn't want a run around she says she wants a nice car

Then let her overpay herself.

She has 3.5k for what she needs.

Why put yourself in debt for something she wants?

DelphiniumBlue · 18/03/2023 15:50

No, don't encourage her to get into debt or live beyond her means.
And what if she can't pay you back?

Stellaris22 · 18/03/2023 15:50

I wouldn't get a loan out, and would do your best to advise she doesn't either.

Does her job involve the need for an expensive car or is it purely for the image? If she can't afford it outright then it's a bad idea. Focus on saving for a flat or house instead.

Does she pay rent and utilities?

Quveas · 18/03/2023 15:50

notthisagainforest · 18/03/2023 15:45

Ok thanks. She doesn't need an Audi a1 she wants one She is getting 3.500 for her write off and she doesn't want a run around she says she wants a nice car

We can't always have what we want, and if we are willing to get into debt to have it then it should be on our shoulders, not someone elses. She is no doubt doing quite ncely living at home - she couldn't afford to be discussing large loans if she had rent, bills and all the rest to pay. Don't do it. You could end up stuck with a loan and no way of paying for it, for something she wants but doesn't need.

tanksgoggle · 18/03/2023 15:50

It’s a want not a need… a life lesson in saving up, imho! What if you actually need the credit if something crops up? Will she sell her car to pay for the repayments. She’s an adult - surely she needs to learn to stand on her own two feet.

Xrays · 18/03/2023 15:51

For a car?! No way. She gets what she can afford. That’s life. I would not get myself in debt for anyone else, even my own child, so they can buy a nice car.

Lastnamedidntstick · 18/03/2023 15:51

notthisagainforest · 18/03/2023 15:46

At the moment no she doesn't want to move out. Maybe in four years she would but the loan would be paid by then I guess

Show quote history

In four years she could alternatively have saved 10k and have a decent deposit for moving out.

instead she’ll have a 4 year old massively depreciated car.

and a pp said, if it’s you loan you’re responsible. What if she can’t or won’t pay, loses her job, has to take long term sick etc?

titchy · 18/03/2023 15:51

notthisagainforest · 18/03/2023 15:45

Ok thanks. She doesn't need an Audi a1 she wants one She is getting 3.500 for her write off and she doesn't want a run around she says she wants a nice car

Then she can pay for it like an adult!

determinedtomakethiswork · 18/03/2023 15:52

No way. Why doesn't she go to the garage and get one on a pay per month basis?

mamnotmum · 18/03/2023 15:54

I wouldn't.

I'd let her get a car she can afford and save up for a new one - once she's saved up then she can buy it!

Floralnomad · 18/03/2023 15:56

Absolutely no way

Xrays · 18/03/2023 15:56

To be honest if she’s seriously considering getting a loan with ridiculously high interest to buy a car then I think you should let her go ahead with it and she’ll have a life lesson. If you bail her out by doing it for her she will never learn.

strawberryicecreamice · 18/03/2023 15:59

Not a chance. If she wants that particular car and she needs a loan then I'd let her take out her own loan.

Original poster
notthisagainforest · 18/03/2023 16:01

Stellaris22 · 18/03/2023 15:50

I wouldn't get a loan out, and would do your best to advise she doesn't either.

Does her job involve the need for an expensive car or is it purely for the image? If she can't afford it outright then it's a bad idea. Focus on saving for a flat or house instead.

Does she pay rent and utilities?

Yes she helps me towards all the bills I really don't want her to buy it. Ive tried to advise her that it's bad money sense. I have brought her up on my own and have really tried to Teach her but it doesn't seem to have worked. She earns 35.000 a year If she lost her job she would have to find another one. I could pay it but it would leave me very short I really would like it if she would just get something cheaper but she is hell bent on it Confused

OP posts:
Ketchupwee · 18/03/2023 16:04

Yes she helps me towards all the bills I really don't want her to buy it. Ive tried to advise her that it's bad money sense. I have brought her up on my own and have really tried to Teach her but it doesn't seem to have worked. She earns 35.000 a year If she lost her job she would have to find another one. I could pay it but it would leave me very short I really would like it if she would just get something cheaper but she is hell bent on it

If she wants to spend on luxuries she doesn't need that is fine, she'll just have have to pay the high interest rates herself. Don't put yourself in financial difficulty because she wants to waste her money

1Wanda1 · 18/03/2023 16:06

If she wants a "nice car" then she can earn the money for it herself, or take out an expensive loan and learn an important life lesson about only buying things when you can afford them, or on credit only if you NEED them.

Never heard anything more ridiculous than the idea of a parent taking out a loan to enable the adult child's lifestyle aspirations. What sort of a lesson is that?

titchy · 18/03/2023 16:07

She's an adult. It's up to her - she has agency to decide what she spends her money on - whether you think it's a waste of money or not. You sound a bit like you don't quite recognise that?