Real life MMD: Should I share the profit with my mum?

purpleweasel

I would tell your Mum all about it and see what she says - my guess would be that she will tell you to keep it, as she is already making the generous gesture of giving you her car! How far are they going? Put the money towards a ticket to visit them, or use it to pay for any extra insurance cost to add your Mum to your policy when they visit

luckystepney

Presuming she gave you an interest free loan and she is giving you another car, I think you should offer her all the profit. The likelihood is that she will refuse anyway but it shows willing on your part and keeps the path smooth for any further interest free loans!

birkee

I see it this way:

You are swapping cars with your Mum, so your old car is effectively hers, so any money from the sale is hers.
They can then hire a car when they visit.

tolapuk_2

Any profit you MAY make on selling your car would make up for the fact that you will be WITHOUT a car any time they visit, this may or may not be very often but certainly some inconvenience to you !

Sheepster

Surprised to hear you think you'll make a profit on selling a car you've bought, as cars nearly always depreciate (Unless say you bought it off a friend who was emigrating and just wanted to sell quick and therefore it was cheaper).

I'm going to guess that perhaps what you say is "profit" is really spare cash after selling as per this example -

You paid £4000 - £4000 "free" loan from parents.

You've paid them £2000 of this already

You sell the car for £3000

You give parents the £2000 you still owe them, and are left with £1000.

It isn't profit of course, the car has depreciated £1000 as cars do, but you've got back £1000 - but this is money you've already paid off your loan. It's your money really and you'd be using it to get another new car if your parents weren't giving you their old one.

I don't think you owe them this money or any share of it, nor would they expect it, but it sounds like you've got great parents there, I'd maybe get them a leaving present.

Anyway, it's going to mean you'll be without a car at some times in the future when they borrow it. This isn't a bad payback for an interest free loan and the goodwill you get from them. Don't worry, just chill on this one, it all sounds good.

kneelbeforezod

Yes, I think you should! At least go halves.

They may be your parents, but that shouldn't mean you to assume the 'bank of mum & dad overfloweth'. You should feel very lucky they've given you the car free (note: not "for free") in the first place. When buying my first house, my father paid the deposit and fees for a share in the property value. When I eventually sold, he'd earned 2 1/2 times what he'd put in. I needed his help then, he could do with the money now - and he's close family - so I view that deal as a bargain

A.Jones

Personally, I don't see that you owe them anything. If they are giving you something it is a gift. Although as they still want access to it, then it is not so straightforward.

Things to be aware of ...

What happens if it doesn't work out abroad, and they come back to the UK. Do they want the car back?

How long will they be coming back for. Is it just weekends, or weeks at a time. If during the week, will it affect how you get to work?

What about insurance. Will they purchase their own insurance, or do they expect you to insure it for any driver?

Petrol. Will they fill it up when they use it?

Lucy_Lastic

My opinion - yes, you should give (or at least offer, and mean it!) the profit to your parents.

And also, you should share the secret of how to make a profit selling a second hand car, so we can all try it!

mrsinvisible

Yes you should give your mum the profit, she lent you money, she ia GIVING a car. I'll bet she has given lots over the years, so give back something now

bigstu101

Talk to your Mum!