Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

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:
MintJulia · 18/03/2023 17:06

Just shrug and say, 'oh well they turned you down, just find the nicest car you can, for 5k.' I'm sure on that salary she could borrow £1,500 instead.

She's young and has to learn to live within her means. The bank said no for a reason. Probably because she has no credit history. She needs to build one by borrowing a smaller amount and paying it back reliably.

LadyGaGasPokerFace · 18/03/2023 17:07

She needs to live within her means. Sounds like she has lemonade money and champagne taste. Leave her to get the large loan herself as I have a feeling she won’t pay you back.

GerronBuzanDoThaWomwok · 18/03/2023 17:07

It'a a no from me

Justanotherdaytoday · 18/03/2023 17:09

I wouldn't. I'd help her with a smaller loan,
Say 5k but she earns more than I do! I manage to pay a mortgage, finance a car and bring up three children on my wage. If she wants the car I would say she needs to cut down in all the luxuries!!

DPotter · 18/03/2023 17:12

No
If she was earning £15k per year it would be no.

On £35k per year - definitively not.

It sounds like she's earning more than you so why would you take out the loan. If she wants the car - she can get a finance deal through the car sales dealership - it would probably be cheaper than a bank loan. She will need to earn the hard way that if your want something you have to pay for it. I know you'll argue she'll be paying you - but the loan would be in your name, your responsibility and your financial reputation down the Swannee if she doesn't pay.

Emmamoo89 · 18/03/2023 17:12

Definitely no

evtheria · 18/03/2023 17:14

If she really wants one, she needs to finance it herself. She's on a decent wage.

Don't do it.

cocksstrideintheevening · 18/03/2023 17:16

I'm shocked you'd even consider it tbh. 35k, living at home, no savings.

Why can't she put the large bonus towards the new car?

fridaytwattery · 18/03/2023 17:27

"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"

Having also read your other posts on this thread, I wonder if you have always given her the best of everything and that is why she is living a lifestyle, rather than a life @notthisagainforest

On 35k she should be saving and living within means rather than holidays, hair, nails and now a possible debt to afford a particular car that goes along with her lifestyle choices .

AxolotlEars · 18/03/2023 17:28

She gets to make the choice as to whether she pays what she has for a car she may need or pays the extra for a car she wants. The circumstances would need to be exceptional before I signed anything to support a loan for anyone. For starters you can't 'make' her give you the money. If she lost her job and didn't have another what would you do. But even with satisfactory...however you evaluate that...answers, its not a good way to live

Calmdown14 · 18/03/2023 17:31

Why are her loan options so high?

She has a good salary and minimal outgoings. She should be a decent candidate for credit and a small loan repaid in full would improve this.

I'd look at her Experian report with her and look for more reasonable options.

I'd be concerned if she's had that salary more than a few months and not saved a penny. It does not indicate good financial management.

Has she also looked into whether PCP might work out better for her?

It's a good car but parts will also be more costly if it needs work so she needs to factor this in..

Dotcheck · 18/03/2023 17:33

Thus is the time if life when they learn serious lessons about the value of money. Getting the loan for her her would genuinely not help her.

Does she earn more than you?

MissBPotter · 18/03/2023 17:40

She only ‘helps’ towards the bills AND wants you to put yourself in debt by £10k just so she can get a fancy car? And she’s on £35k? That’s a very good salary for her age. She should 100% use her money from the write off for a decent enough car, £3500 would get something quite decent. Do NOT get her a loan. I would also ensure that she is paying you a decent rent. Sounds like she lacks money sense. At that age I had a £100 ford fiesta! It was ok!

Original poster
notthisagainforest · 18/03/2023 17:43

fridaytwattery · 18/03/2023 17:27

"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"

Having also read your other posts on this thread, I wonder if you have always given her the best of everything and that is why she is living a lifestyle, rather than a life @notthisagainforest

On 35k she should be saving and living within means rather than holidays, hair, nails and now a possible debt to afford a particular car that goes along with her lifestyle choices .

No I really haven't been able to spoil her. I do not earn anything like she does. She has worked hard from 16 to get to the job she has now. She has had Christmas and birthday money but that is all. I know she is not making a good choice. I just didn't know if I should get the loan to save her money on interest but the vast majority here are saying no

OP posts:
Original poster
notthisagainforest · 18/03/2023 17:44

MissBPotter · 18/03/2023 17:40

She only ‘helps’ towards the bills AND wants you to put yourself in debt by £10k just so she can get a fancy car? And she’s on £35k? That’s a very good salary for her age. She should 100% use her money from the write off for a decent enough car, £3500 would get something quite decent. Do NOT get her a loan. I would also ensure that she is paying you a decent rent. Sounds like she lacks money sense. At that age I had a £100 ford fiesta! It was ok!

She hasn't asked me to do this not atall. I have considered it to save her money on interest

OP posts:
DemonSpawn · 18/03/2023 17:45

At firrst glance this sounds like a good opportunity for her to learn about finance from the front line to be honest.

But… she’s got a £35k job, so take home is about £2300, she lives at home and the loan payments will only be £250 a month, so well within her affordability. This means she should have no problems with the car loan and likely won’t learn the bad sides of debt.

She’ll likely be buying a 5 or 6 year old car so make sure she gets a low mileage one. Audi is a good brand that lasts, so she could be still driving it in 10 years time or more.

It could be worse, she could set on leasing a car or buying a car on PCP which would allow her to get a newer car for the same money if she handed back the keys or came up with a lump sum after 4 years. Mind you, still living at home on £35k she could afford that too imho.

POTC · 18/03/2023 17:47

If you've told her not to do it then you take out a loan to enable her to do it you're undermining yourself!

purplerainldn · 18/03/2023 17:47

When I was 21 I brought a car on finance. Then due to circumstances I had to sell the car and was in negative equity.
I was still paying the car off 6 years later- If I could give my younger self any advice then it would be not to take anything out on finance/loans in the future! X

Riverlee · 18/03/2023 17:49

She earns £35k a year at 22! At that age, and those earnings, I’d let her crack on. She should be saving a lot with that salary. It will be a good life lesson for her, (and also good for her credit rating).

WeeOrcadian · 18/03/2023 17:49

If she can afford nails / hair / clothes / nights out, she needs to learn how to live within her means. If she wants a nice car ('nice'), she has to make sacrifices. Such as nails, hair and nights out. Stop enabling her. She's an adult.

Original poster
notthisagainforest · 18/03/2023 17:50

DemonSpawn · 18/03/2023 17:45

At firrst glance this sounds like a good opportunity for her to learn about finance from the front line to be honest.

But… she’s got a £35k job, so take home is about £2300, she lives at home and the loan payments will only be £250 a month, so well within her affordability. This means she should have no problems with the car loan and likely won’t learn the bad sides of debt.

She’ll likely be buying a 5 or 6 year old car so make sure she gets a low mileage one. Audi is a good brand that lasts, so she could be still driving it in 10 years time or more.

It could be worse, she could set on leasing a car or buying a car on PCP which would allow her to get a newer car for the same money if she handed back the keys or came up with a lump sum after 4 years. Mind you, still living at home on £35k she could afford that too imho.

Thank you for your reply This is what she is saying. She wants a five year old with low miles that will be hers at the end of the four years. She understands leasing is a waste of money. I just wish she would get a cheaper car but that is her choice. I've tried to make her see my point of view but she will have to learn and deal with this herself.

OP posts:
SallyWD · 18/03/2023 17:50

Well I'd love an Audi too but I can't afford it so I have a Skoda. Love my Skoda, it's 10 years old and never had any problems at all.
Part of being an adult is realising you can't always have what you want.

ClaireStandishsLipstick · 18/03/2023 17:50

I wouldn’t even have a phone contract for my children when they were under 18 so there’s no way I would get a loan for a car.

FairIce · 18/03/2023 17:51

She's on a very good salary for her age. She can afford it. If you can't buy a fancy car when you're 22 and living at home it's a shame.
All I would say OP is that she ought to be saving as well. She obviously hasn't been saving or she wouldn't need a loan. She should aim to save at least the same as the loan.

Original poster
notthisagainforest · 18/03/2023 17:52

WeeOrcadian · 18/03/2023 17:49

If she can afford nails / hair / clothes / nights out, she needs to learn how to live within her means. If she wants a nice car ('nice'), she has to make sacrifices. Such as nails, hair and nights out. Stop enabling her. She's an adult.

I'm not enabling her at all. She earns her own money. She hasn't asked me to help she is doing it herself. I was considering getting the loan as I can get a cheaper rate that's all. I havnt enabled her to do anything !

OP posts: