People say that money doesn't make you happy, but from experience, I can tell you that not having enough money is not fun either. Sometimes getting a quick loan can be just the trick to get you back on your feet. This site is all about how to get loans and financing for small amounts of money and a short time when you just need a little more cash to tide you over and pay some bills. I like to be able to feel confident that all of my bills are paid and be able to put food in the fridge, without putting my family's finances in crisis.
When your child reaches the legal driving age, it's pretty much certain that they'll be pestering you for their first car. After all, they can't borrow yours forever – if you let them drive it at all – and they're pretty unlikely to be able to afford to buy their own vehicle while still young.
Unfortunately, not everyone has piles of cash lying around in savings, leaving them unable to just go out and pay for their child's first car in full. The next best option is to take out a car loan, which lets you pay in installments so it's more easily manageable. If you're going to apply for a car loan on someone else's behalf, however, there are a few things you should think about first.
You should agree on conditions with your child
You might be happy to take out the loan, pay it back in full yourself, and leave your child to enjoy their new mobility. On the other hand, you might not. Perhaps you'll make the repayments yourself until your son or daughter gets a job, finishes university, reaches a certain age or some other condition.
Whatever you decide, make sure you give some thought to the consequences of the arrangement, and discuss it with your child so they're clear on the deal.
You'll always be legally responsible
It's important not to forget that, no matter what you agree with your child, you'll remain responsible for repayments in the eyes of the loan provider. Hopefully, you have enough trust between the two of you that you can rely on your child to stick to whatever agreement you make. However, you should consider what will happen if they don't or they're not able to and whether you'll be able to cover repayments yourself in the meantime.
Don't forget the extra costs
Running a car can be expensive, with the cost of fuel, insurance and repairs adding to the monthly outgoing associated with the vehicle. If your child won't be able to pay for these things on their own when they're not earning, make sure you can comfortably handle it all yourself on top of the loan repayments.
Other children
If you have other, younger children who will eventually want cars as well, you should think about what you'll do when they reach driving age. Taking out additional loans can get expensive, so decide if you'll be able to afford it when the time comes. You should also think about your credit rating and if you're likely to be eligible for further loans if the first one is still active.
Share27 September 2017
