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
Teenagers

Parenting teenagers has its ups and downs. Get advice from Mumsnetters here.

Original poster

20yr old wants an interest free loan for a car ?

38 replies

cluedo3 · 25/07/2020 22:27

My 20 yr old is a student and has asked for an interest free loan for a car that he will pay back next yr when he gets a job. Opinions?

OP posts:
ElsieBeard · 25/07/2020 22:31

It's a bit vague? how much? likelihood of paying it back.? Can you afford it? job prospects?

Timeforabiscuit · 25/07/2020 22:33

Nope!

If he can't afford the car, how can he afford the insurance, tax and mot?

How will it be serviced?

Where will it be parked?

TheLegendOfZelda · 25/07/2020 22:35

Just buy him a car? (Can you afford to?)

IHaveBrilloHair · 25/07/2020 22:35

Not enough information

Alloverthegrapevine · 25/07/2020 22:36

Can you afford it? Even if he doesn't/can't repay as expected?
Has he saved anything himself?
Has he worked so far, as a student?
Does he need a car?
Can he afford to run it? Does he even know what that will be? Insurance costs for young drivers are shocking, often annual premiums as much as the value of the car.

I wouldn't be adverse to helping him out, provided it wouldn't leave me short and he'd made some effort himself. E.g. I might match what he's saved but I wouldn't just do it for him.

With interest as low as it is on savings, you wouldn't be out of pocket for it being interest free, so I wouldn't get hung up on that.

IHaveBrilloHair · 25/07/2020 22:37

just buy him a car?
That is such an MN answer!Grin

uniglowooljumper · 25/07/2020 22:40

Nope. 'When' - that means he hasn't got one. It'll mean taking him to court to enforce it if he stops paying, too.

Alloverthegrapevine · 25/07/2020 22:40

Don't just buy him a car! Even if you can. Every single one of my friends who was bought a car wrote it off in the first year. It was those of us who slaved and saved for our cars who cared enough to keep them (and us!) safe.

beccy11 · 25/07/2020 23:21

Tough call
Does he already have a car so this would be an upgrade? If so can you afford to 'loan' the money?
Does he need a car or just want one?
Will
It improve job prospects?
If no car can you/they afford the running and maintenance costs for another car?
We bought dd car for her 17th birthday and because she's at uni we pay all costs excluding petrol and it's an eye watering commitment each year 😫 but we live literally in the back of nowhere with no regular bus service so the car is an essential

beccy11 · 25/07/2020 23:24

@Alloverthegrapevine

Don't just buy him a car! Even if you can. Every single one of my friends who was bought a car wrote it off in the first year. It was those of us who slaved and saved for our cars who cared enough to keep them (and us!) safe.
Tbf most of dd friends had cars bought for them for birthdays and they are all sensible and safe drivers so this is a little unfair- young drivers now can't afford to write their cars off black boxes seem to be an excellent deterrent
IHaveBrilloHair · 25/07/2020 23:31

I don't think all kids who are bought cars are dickheads with them at all, it was the, "just buy him a car", that got me!

AskingforaBaskin · 26/07/2020 00:09

And how will the insurance etc be paid?

cabbageking · 26/07/2020 00:14

When he gets a job then he can have the loan.

He may not get a job next year and will have insurance, tax, petrol, upkeep on top of a loan he can't repay.

TheLegendOfZelda · 26/07/2020 07:32

@IHaveBrilloHair

I don't think all kids who are bought cars are dickheads with them at all, it was the, "just buy him a car", that got me!
Happy to amuse Grin

If you've got the money, why not? It's literally completely normal for everyone I know to buy their kids their first car, or give them their old one

Mobile phones can cost more

dementedma · 26/07/2020 07:35

I wish I lived in MN world where it was completely normal to be able to buy your kids their first car!😆

netflixismysidehustle · 26/07/2020 07:38

Need more details...

Does he have a part-time job?
If not how will be pay for running costs like insurance, petrol, parking Mot?
Does he have a car ?
Can you afford to loan him the money?
Has he ever borrowed money and not paid you back?
Does he need a car?
Does he live in a place where he probably needs to drive to get to work? (Ie not central London or similar where public transport will do)

Peaseblossom22 · 26/07/2020 07:38

We have just done this for middle dc. We live rurally, by public transport it would take him 4 hours to get to his job 10 miles away involving several changes . He had saved half and we gave him an interest free loan for balance . I don’t want him handing over interest when he doesn’t need to

Incrediblytired · 26/07/2020 07:40

I would lend the money if you can afford to and if your 20 year old is trustworthy with money. I wouldn’t charge interest - why would you?

If you don’t have the money then don’t.

PleasantVille · 26/07/2020 07:40

@cluedo3

My 20 yr old is a student and has asked for an interest free loan for a car that he will pay back next yr when he gets a job. Opinions?
My opinion is that you as a parent should make decisions for your child as only you know the full facts of the situation.

Why does it matter what my opinion is?

HouchinBawbags · 26/07/2020 07:58

Buy a couple of hundred quid banger. If it's road safe and works then he should be happy. If not then nope. Get a job and pay your own.

Needmoremummyjuice · 26/07/2020 07:59

My parents did this for me when I left uni and got first job (car was essential for the job). It was a very basic but reliable run around cost about £2000 I paid them £100 a month back until the cost of the car was covered (actually paid it off slightly early) I had to insure/tax/MOT it which was fine it was just the initial outlay straight from uni that was the issue and the car was essential. Is the situation similar or does he just want a car?

Iloveyoutothefridgeandback · 26/07/2020 08:01

Assuming he has no income right now, the answer would be no from me.

Does he suddenly need the car for some reason? He has presumably managed fine without one for the first 2 years of uni.

ThroughThickAndThin01 · 26/07/2020 08:03

I would.

SteelyPanther · 26/07/2020 08:13

Firstly, can he afford to tax, insure, fuel and maintain it ?
Will he buy a car based on what you can afford to loan, or does he want a lot of money for an expensive car ?

JaJaDingDong · 26/07/2020 08:49

You can buy a car for £500. Can you afford to give him the money?

In my experience you should only lend people money, or lend anything really, if you can afford to not get it back.

Swipe left for the next trending thread