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

potato_pizza

Yes! She'll probably turn you down anyway when you try to give it to her and if not think how good you'll feel about returning their kindness :A

Stampede_2

This proposal has disaster written all over it. I know it sounds great and a win win for you but:
leaving aside a so called profit, real or imaged or only paying off what you still owe on it, what is your car,why did you choose that model, its age, its economy? - all things to consider against your Mum's car
Then you'll be indebted to your folks when they visit, this is a wide open commitment. When the time comes exactly what use will your Mum expect, how comfortable, convenient or inconvenient will this open ended use and promise be when it has to be honoured ? I'll predict it wont be. It has all the ingredients to sour the relationship.
What about insurance cover ? Do you have others on your policy all the time, maybe paying extra premiums for an uncertain benefit. Do you only add the extra driver(s) as an amendement when the time comes and that may be a disproportionate cost - mid term adjustments nearly always are. What if your Mum, having lost her familiarity with UK roads has a claim - up goes your premium, who pays for fuel, even any repairs etc etc.whilst she has it?
All things considered, as there is no way you can realistically tie up the loose ends with a written/ or watertight 'understanding' to keep a friendly uncomplicated relationship, gently decline.
Suggest Mum sells her car and that is money towards a hire car, when she visits if your circumstances mean you can not ferry her around. Maybe even buy Mum's car at a fair price from her if its better and sell yours, check the insurance costs first, but make sure you keep control and ownership of the situation.

:jstill keeping control of ther purse strings and managing to pay of the credit card in full each month, in fact only using it to keep building up a good credit rating. Careful driving is giving me 58+ mpg derv. in mixd urban/rural driving.

mungaman

Hi

It was a gift, so the money is yours, simple!! They will use the
Car when they're back for a visit, so you will be without sometimes.
Just give them a big hug, a big thank you & buy them a nice leaving present, job done!!

uk2009

Your parents have enough money to live abroad and give away their car for nothing. They also had enough to give you money for a car, albeit a repayable loan. Not poor are they and hardly in need!!
They are now asking you to give up your car so they still have the enjoyment of using 'theirs' when returning for a holiday - and you will be car-less at those times relying on public transport, taxis etc. which will cost you. Furthermore, does their car cost more to run and insure than yours I wonder?
Jeez hardly a difficult, moral decision is it?
Keep the profit and at the same time ask your parents to write off the loan!

tallgirld

Nahhhhh keep it. Your parents probably wont want it anyway :-)

Coni

You could just offer it - if I was your Mum I'd tell you to keep it.:T

alggomas

Share the profit She IS your MOTHER !

Southpaw18

Ive had my troubles with my parents in the past, and although thats the case when they are needed they are always there. Its nice that you want to share the profit from it, i definately think you should give them some of the money, would be a very nice gesture.

Menaisavingexpert

Your parents are obviously very kind, as mine were when they helped me with many no interest loans over the years. You therefore have two issues: When parents lend you money you get a lot of respect by not defaulting and paying them back on time.

Your mum loaned you money to pay for a car. It's your car. You have faithfully kept up payments and, whether you dispose of the car or not before the term of the loan you need to repay that loan in full. So whenever you dispose of the car pay the loan in full and keep the rest of any amount gained after a sale in any circumstances, after all that imaginary profit is probably not going to cover the real costs of keeping a car you have been paying out so far (insurance, road tax, repairs and service).

Whatever she thinks, your mum is offering to LOAN not give you a car - if she wants to use it whenever she's in UK, she is LOANING it to you. Before you enter this arrangement be sure you can afford the tax, servicing and most of all insurance (with two named foreign drivers who will lose their NCD by no longer owning a car) on what I'm guessing is a better, more expensive car than you have now.

If you can't handle the value of this second loan, respectfully decline what they call a gift and suggest they either sell the car and spend that money on rentals when in UK or keep that car, name you as a driver on the insurance for when you run it round the block or to the garage for servicing or to do the airport trips. Hopefully you have space in your driveway to let them park it.

janpryor34

I agree with CLGoggin, JSS & others that you are not really making a profit on selling your car just, hopefully, getting some money back after repaying your parents so I don't see any reason to share it with them. Better to put it towards the extra insurance costs of having them added to your policy, and to cover your extra transport costs while they are using the car.

Also, and I know this sounds like 'looking a gift horse in the mouth' but have you looked into any potential extra costs of having your mum's car? its worth looking into stuff like insurance group, road tax rate, fuel economy, servicing costs etc., before you commit to it. I speak from disappointed experience, good friends who were going back to the USA were trying to sell both their cars, without much luck, then our car broke down and had the AA recover it, when we told them we couldn't drive them to the airport, for which they were going to pay the diesel, they generously suggested we accept one car as a gift, just get them to the airport and it was ours. Lovely Audi, several years younger that our car, whats not to love? First it arrived with a tyre going flat, beyond repair, and no spare so a new tyre had to be bought asap, then we found the insurance was much more than we were paying (yes we used all the comparision sites). We set up a monthly DD for the insurance, which cost extra but we were too short of cash to pay it all upfront. Then the 300+ mile round trip to Heathrow, ok we were used to a diesel but I'd never known a car drink petrol like this one, before we'd got home it was obvious that we just couldn't afford to run this free car so as its MOT was nearly up we booked it in for a test hoping to sell it while it still had a little road tax left, sadly it failed the test with a long list of defects and we ended up selling it in a hurry for not much more than scrap value to a dealer who wanted the engine. After the cost of the tyre, MOT, a months insurance & a large 'admin fee' for cancelling, petrol and advertising it we lost almost 200 pounds. So not only 'buyer beware' but always beware, even if its free it can cost you more than you think.

Anyway I hope it works out better for you and your parents.