Car Loan - To help or not to help

BaileyMoselle

Pixie5740 wrote: »

I assume you're replying to me with that one...?

I thought there would be a balloon payment as £1,900 + (48 * £200) wouldn't buy you a brand new Nissan even if the interest was at 0%.

How will she make the balloon payment? If she can't pay then her options will be to hand back a car after shelling out £11.5k (ouch) or trading it in for another new car and starting the whole cycle again.

I think it's a daft idea and that your gf needs to be more realistic about what she can afford. No way would I purchase a depreciating asset over a 4 year period.

Agreed. Unfortunately some people are simply daft when it comes to their money.

DCFC79

Have you managed to sway her away from this idea yet ?

Pixie5740

BaileyMoselle wrote: »

Agreed. Unfortunately some people are simply daft when it comes to their money.

If i were in your position, I wouldn't be lending her the £1,900.

leespot

It isn't their money though....£1900 of it is yours. You could suggest to her that she saves the money herself then buy (rent) herself the car? That way you'll know how serious she is about wanting it.

ReadingTim

So, she can just about afford the repayments, but can't afford the deposit, and is unlikely to afford the balloon payment at the end to buy the car, which means you're unlikely to get your original deposit back. She might be able to use the equity in the current Nissan as a deposit against a new car, but something tells me that'll come up short, so may need another few thousand from you in 48 months time.

So really the question is do you want to give your girlfriend two grand now, and in all likelihood, several more thousands in the future? Only you can answer that one OP...

BaileyMoselle

ReadingTim wrote: »

So, she can just about afford the repayments, but can't afford the deposit, and is unlikely to afford the balloon payment at the end to buy the car, which means you're unlikely to get your original deposit back. She might be able to use the equity in the current Nissan as a deposit against a new car, but something tells me that'll come up short, so may need another few thousand from you in 48 months time.

So really the question is do you want to give your girlfriend two grand now, and in all likelihood, several more thousands in the future? Only you can answer that one OP...

Yes this sums it up. The money could be put to a deposit on her council flat since she qualifies for a massive discount. This would be sensible

Jenniefour

"Should I assist with the deposit - or risk the inevitable wrath following denial?".

There's no "should" or "shouldn't about it, it's entirely up to you. However, this does indicate that it might not be OK for you to say "no" in your relationship and that would concern me if I were in your shoes.

Check your figures for the Nissan - you say the other car was cheaper so there's some payment missing on the Nissan somewhere, figures you've posted only add up to £11,500.

BaileyMoselle

DCFC79 wrote: »

Have you managed to sway her away from this idea yet ?

I will speak to her tonight. She is due a decision about the finance tomorrow. Hopefully it will be denied due to past defaults and this debate becomes irrelevant. Otherwise I will be feeling like Mr Miser for withholding the deposit. (probably).

leespot

Past defaults = alarm bells. Very difficult to come across as helpful online sometimes, but you would be wise to say no to her. If she needed a new car them it would be a different discussion - but she doesn't need a new one, she wants a new one, and that is totally different.

Jenniefour

BaileyMoselle wrote: »

Yes this sums it up. The money could be put to a deposit on her council flat since she qualifies for a massive discount. This would be sensible

Does she plan/want to buy her council flat? If so, buying a brand new car on finance is the equivalent of shooting herself in the foot - it's going to seriously reduce how much a mortgage lender would be willing to offer.