getting a loan from the parents...?

[stev0]

Is this generally a good idea?

I have been in the market for a new car, and recently realized that I am able to get close to what I paid for my truck (00' F150) if not what I paid for it. Ive been eying the new STi's at the local subaru dealership, and have a pretty decient price on a 2005 black sti with the gold bbs wheels . Only problem is I need about 8k more, maybe closer to 6k by the time the car is actually at the dealership.

The question really isn't if he has the money, it's if he will loan me the money. I would be able to pay the total amount back within 12-18 months at the very most. Have any of you done this?

 

[RossMAN]

How much are you looking to borrow?

Do you currently have a job? Part or full time? Get paid decent?

 

[Yossarian]

If you were my son I'd tell you to get a loan. If you want a new car you should pay for it yourself.

 

[alkemyst]

my father wanted to finance my next car himself. He figured he can borrow at 4%, I am looking at at least double that on a car loan.

He told me even money (4%) I told him 6%....so it's a good deal for both of us.

He has tons of equity though and cash on hand. That's really the deciding factor. Whoever lends you the money will have to be able to live without it during the repayment period.

Å

 

[sygyzy]

...or be able to live with not getting repaid at all. That's what you always have to consider when lending friends or family money.

 

[stev0]

Originally posted by: RossMAN
How much are you looking to borrow?

Do you currently have a job? Part or full time? Get paid decent?

Part time currently, full time once school is out (second week in May). The car will be at the dealership by mid-May at the earliest, but the manager there is saying first part of June for sure. The pay is very nice for a college student

He has tons of equity though and cash on hand. That's really the deciding factor. Whoever lends you the money will have to be able to live without it during the repayment period.

I don't know exactly, but I'm sure he has more than enough to be able to loan it out to me.

If you were my son I'd tell you to get a loan. If you want a new car you should pay for it yourself.

Thats plan B... I guess

 

[stev0]

Originally posted by: sygyzy
...or be able to live with not getting repaid at all. That's what you always have to consider when lending friends or family money.

I have always paid him back every time that he has borrowed me money, it has never been for this much though.

 

[alkemyst]

With a larger sum if you draft up a simple loan agreement both parties are covered from either changing terms or reneging...you would have to go to small claims court at least to settle disputes.

I wouldn't imagine not paying back my father. I gave out a few small loans to friends when I was younger and had a lot of disposible income. Never had a problem with paybacks, although at the time I was about 190lbs and less than 10% bodyfat .

MSOffice may have a loan agreement template.

Å

 

[stev0]

Originally posted by: alkemyst
With a larger sum if you draft up a simple loan agreement both parties are covered from either changing terms or reneging...you would have to go to small claims court at least to settle disputes.

I wouldn't imagine not paying back my father. I gave out a few small loans to friends when I was younger and had a lot of disposible income. Never had a problem with paybacks, although at the time I was about 190lbs and less than 10% bodyfat .

MSOffice may have a loan agreement template.

Å

I could never personally see my father getting worked up enough to take his own son to court, although I will bring it up when I talk with him about this

 

[alkemyst]

Originally posted by: stev0

I could never personally see my father getting worked up enough to take his own son to court, although I will bring it up when I talk with him about this

Me either, however my dad is a banker...when I suggested we write up a loan doc, he was impressed.

I was thinking of the time though that my brother ended up paying him back about $100 more than he borrowed for a bike....with a bank account it would be easy to figure out, but at the time my brother and I worked cash (like 10-13 years old ).

Å

 

[sygyzy]

Originally posted by: stev0

Originally posted by: sygyzy
...or be able to live with not getting repaid at all. That's what you always have to consider when lending friends or family money.

I have always paid him back every time that he has borrowed me money, it has never been for this much though.

I am not going to be a grammar nazi here but I have to point this out. because I am seeing it more often lately. When you use the word borrow, it's from the receiving end. As I understand it, your dad cannot borrow you money. He lent you money.

It's the same mistake as when people say "The teacher learned the students"

As for you paying it back, you said so yourself that it wasn't for this much. It would be so easy for you or your dad to say "ah we are family, let's forget about this debt." The question is how much pride do you have in yourself, as a man?

 

[stev0]

Originally posted by: sygyzy

Originally posted by: stev0

Originally posted by: sygyzy
...or be able to live with not getting repaid at all. That's what you always have to consider when lending friends or family money.

I have always paid him back every time that he has borrowed me money, it has never been for this much though.

I am not going to be a grammar nazi here but I have to point this out. because I am seeing it more often lately. When you use the word borrow, it's from the receiving end. As I understand it, your dad cannot borrow you money. He lent you money.

It's the same mistake as when people say "The teacher learned the students"

As for you paying it back, you said so yourself that it wasn't for this much. It would be so easy for you or your dad to say "ah we are family, let's forget about this debt." The question is how much pride do you have in yourself, as a man?

Me saying 'lets forget about 10k' probably wouldn't fly. I have enough pride in myself to hold true to my word.

 

[sygyzy]

stev0 - If that's the case, borrow the money man. You just answered your own question