How likely is this?

vacheron

Hi gizmo111.

Reading this thread has compelled me to get out of bed at 7.45 on a Sunday morning to respond.

When I saw your original post I read down cringing in anticipation of the first "why on earth" posts, but some of the responses to this thread have taken the usual level of opinionated dictatating of how complete strangers should live their lives to an entirely new level, with some even descending to the name calling of your daughter which I think is despicable.

There are those who believe you should never buy anything new, or never have anything to be proud of, care for and look after. When you are 25-35 you may have have a wife and kids, 35-45 your new house, 45-65 a nice lawn. and I guess when you get to 70+ you can come on MSE and preach to everyone how to live their lives!

For your daughter, or many people her age, this may very well be her car. It gives her freedom, it is something to care for and be responsible for, it will teach her the value of money as she sees the money going out for it each month and at her stage in life her car will form a far greater part of her life than it will when she gets older and other priorities take over. There will of course be a little bit of peer group pride too.

I'm happy to hear that she got her loan in the manner recommended by the posters who were good enough to answer your actual question, and at an excellent rate too! Good for you for not trying to talk her out of anything. It isn't her first car, she isn't asking bank of mum and dad to give her the money, she seems to have her head screwed on and her previous car experience means she isn't going into this blindfolded with regard to running costs or as an inexperienced driver.

Speaking from experience. I agree that in the long term some cars cost more second hand than they do new if there are special promotions running or you can haggle a decent discount.
I have just done the same and bought a new VW Tiguan (when I never believed I would ever buy new) after the arrival of our son becaused the numbers were simply better than buying a used model (forecourt price difference <£1500 on a 2 year old, 25,000 mile model!)

Some people think nothing of spending £5K on a kitchen when an old kitchen would still boil an egg, and this effectively depreciates to 0 the second it is installed and would only add marginally to the sale value of their house.

I am not an indulgent spender by nature (by intense saving and working at a job with a very average salary but paid overtime for many years I worked huge hours and managed to pay off my 300K house before I was 35), however not EVERYTHING in life should be thought of like this. When you are young and have no dependents, enjoy your life a little. That's what you go to work 5 days a week for isn't it?

Regardless of depreciation, your daughter will still own an asset after 2 years of significant value, which is more than most 20 year olds will be able to show for their respective £300/month!

I remember buying a 3 year old used car in 1998 for £14,000. I really wanted something special and borrrowed 10K from my bank to pay for it (my first and only ever loan... notice how it did not descend me into a life of debt!). I ran it into the ground over the next 10 years while I was young free and single and loved every single minute of it!

Anyway, I've been ramblng long enough, I just thought I'd show my support for the politeness and restraint you have shown to some of the posts you have recieved. I hope she gets the car she really wants, please keep us updated, and maybe post us a pic of it too!

gizmo111

vacheron wrote: »

Hi gizmo111.

Reading this thread has compelled me to get out of bed at 7.45 on a Sunday morning to respond.

When I saw your original post I read down cringing in anticipation of the first "why on earth" posts, but some of the responses to this thread have taken the usual level of opinionated dictatating of how complete strangers should live their lives to an entirely new level, with some even descending to the name calling of your daughter which I think is despicable.

There are those who believe you should never buy anything new, or never have anything to be proud of, care for and look after. When you are 25-35 you may have have a wife and kids, 35-45 your new house, 45-65 a nice lawn. and I guess when you get to 70+ you can come on MSE and preach to everyone how to live their lives!

For your daughter, or many people her age, this may very well be her car. It gives her freedom, it is something to care for and be responsible for, it will teach her the value of money as she sees the money going out for it each month and at her stage in life her car will form a far greater part of her life than it will when she gets older and other priorities take over. There will of course be a little bit of peer group pride too.

I'm happy to hear that she got her loan in the manner recommended by the posters who were good enough to answer your actual question, and at an excellent rate too! Good for you for not trying to talk her out of anything. It isn't her first car, she isn't asking bank of mum and dad to give her the money, she seems to have her head screwed on and her previous car experience means she isn't going into this blindfolded with regard to running costs or as an inexperienced driver.

Speaking from experience. I agree that in the long term some cars cost more second hand than they do new if there are special promotions running or you can haggle a decent discount.
I have just done the same and bought a new VW Tiguan (when I never believed I would ever buy new) after the arrival of our son becaused the numbers were simply better than buying a used model (forecourt price difference <£1500 on a 2 year old, 25,000 mile model!)

Some people think nothing of spending £5K on a kitchen when an old kitchen would still boil an egg, and this effectively depreciates to 0 the second it is installed and would only add marginally to the sale value of their house.

I am not an indulgent spender by nature (by intense saving and working at a job with a very average salary but paid overtime for many years I worked huge hours and managed to pay off my 300K house before I was 35), however not EVERYTHING in life should be thought of like this. When you are young and have no dependents, enjoy your life a little. That's what you go to work 5 days a week for isn't it?

Regardless of depreciation, your daughter will still own an asset after 2 years of significant value, which is more than most 20 year olds will be able to show for their respective £300/month!

I remember buying a 3 year old used car in 1998 for £14,000. I really wanted something special and borrrowed 10K from my bank to pay for it (my first and only ever loan... notice how it did not descend me into a life of debt!). I ran it into the ground over the next 10 years while I was young free and single and loved every single minute of it!

Anyway, I've been ramblng long enough, I just thought I'd show my support for the politeness and restraint you have shown to some of the posts you have recieved. I hope she gets the car she really wants, please keep us updated, and maybe post us a pic of it too!

Thankyou for putting a sensible perspective on it and for sharing your expeirence of your loan a a young age.
We went ot Ford yesterday and met the rudest salesman I have come across, who didn't know when he would have one totest drive, when he could offer a valuation for her car and just showed absolutely no interest in making a sale. We will be going to a different one today. But money is in the bank so no need to rush and buy one we'll just keep an eye out for deals over the next couple of weeks.

gizmo111

demontfort wrote: »

I don't know you or your daugther and I know HSBC are lending her the money but she still sounds like a spolit brat and you sound like you really self indulge her when what she needs is a verbal clip round the ear. :rotfl::rotfl::rotfl::rotfl:

And you sound like a complete jealous idiot. She is perfectly entitled to spend her money that she earns on anything she wants - however frivolous. I only hope you do not have any children to abuse in the manner you suggest above.

Netwizard wrote: »

Certainly hope the newer ones are better than the old ones for rust! There are loads of KA's in our works car park, covered in rust! They are not old cars either

So do I - her first car was a V reg KA and it literally fell apart with rust at MOT time!

demontfort

My parents brought me up to be responsible with money and would have no problems telling me if they thought I was doing something stupid. I don't define that as abuse, it's tough love.

As for being jealous, jealous of what a Ford Ka on finance. I'm not much older than your daughter but have just bought a secondhand (shock, horror) Lexus for £17k of my owned hard earned cash.

Anyway pointless online bickering aside good luck to your daughter with the motor, I sincerly mean that. I hope she enjoys it but doesn't overstretch herself financially in the process.

arbroath_lass

demontfort wrote: »

My parents brought me up to be responsible with money and would have no problems telling me if they thought I was doing something stupid. I don't define that as abuse, it's tough love.

:eek:

She's 20 not 12! If my parents told me I was doing something stupid at 20 it have made me more determined to do it prove them wrong. (That's being polite)

A wee bit of advice is fine but don't be offended if they don't take it (and no nagging). Telling you it is stupid is controlling.

System

What model of KA is she looking at? My younger sister just bought a brand new KA studio for 6995.

Still if she wants a better model that's fair enough - each to their own. I don't think taking a loan is a bad thing because it is all part of the lesson in handing your own finances. After all, she will have much bigger financial hurdles to come (i.e. mortgage!).

I also don't think there is anything wrong with buying new. My last 2 cars I bought new and didn't pay any more than a 1 yr old version with 12-15k on the clock - haggle hard with the dealers (esp ford)- and always insist on a free service or two!

Sometimes its false economy to buy 2nd hand when those repair bills start coming in and you've no warranty. Especially true when your salary is low/have no savings. At least with this your daughter knows where she stands with the loan and her car is covered by warranty.

System

demontfort wrote: »

My parents brought me up to be responsible with money and would have no problems telling me if they thought I was doing something stupid. I don't define that as abuse, it's tough love.

As for being jealous, jealous of what a Ford Ka on finance. I'm not much older than your daughter but have just bought a secondhand (shock, horror) Lexus for £17k of my owned hard earned cash.

Anyway pointless online bickering aside good luck to your daughter with the motor, I sincerly mean that. I hope she enjoys it but doesn't overstretch herself financially in the process.

Shame on you demontfort, spending 17k on a secondhand car. Not very financially sound when you could have had a brand new dacia sandero access for 5995 with 3 years warranty and kept the 11k to invest/pay off mortgage etc etc... :rotfl:

demontfort

teepee83 wrote: »

Shame on you demontfort, spending 17k on a secondhand car. Not very financially sound when you could have had a brand new dacia sandero access for 5995 with 3 years warranty and kept the 11k to invest/pay off mortgage etc etc... :rotfl:

What's wrong with a Dacia? The difference is after buying the Lexus I still have £230k sitting in my savings account ....capiche :A

bigadaj

I don't understand this pointless bickering, it's a forum where anyone is allowed to post an opinion, yes but opinion it is.

The correct process surely is to try and respond to the OP with an answer to the original question, and everyone is perfectly entitled to their opinion and an opportunity to point out any potential flaws, drawbacks or risks in the preferred option.

Then the individual goes off and does what they want, hopefully all goes well but as an adult people need to make their own decisions and take responsibility.

Cars are a huge waste of money but generally necessary, so long as there is no talk of mis sold loans then everyone is happy!

System

demontfort wrote: »

What's wrong with a Dacia? The difference is after buying the Lexus I still have £230k sitting in my savings account ....capiche :A

you could have had 241k left with the dacia