Daughter is 23 and lives at home for the foreseeable future. She has a decent part time job with a private business related to her college major that pays $22/hr. She loves it and plans on going full time with them this August when she graduates.
Her car is 10 years old and has just had a major $2,100 repair with 144,000 miles on it. The car has been reliable up to this point however being a Hyundai the trade in value is presently around $5,000 on a good day. This car has long since been paid off.
Over the past few weeks she and my wife have felt they now cannot trust the car for some reason and want to trade it in on a new truck for her. The car drives fine today but she is using this 'opportunity' to ask for a truck.
She is an adult however we are attempting to guide her in financial decisions as a young adult. My wife wants her to use $8,000 down along with the $5,000 trade in (estimated if nothing else breaks) then finance the rest. They are looking at $30,000 small trucks.
My daughter has some credit built up and, theoretically could afford a $400/month payment however I argue why would she want a payment like that at this point in her life.
I have expressed my sentiment and waffle between drive it longer and save money to let's trade it now while it still has some value and is in good running condition.
Although we have not checked with the bank yet I would imagine the wife and I would have to cosign for my daughter's loan. I suggested she look at a smaller less expensive newer vehicle with less than 10,000 miles and warranty left on it if she is going to do this. Say one year old used around the $20-$25,000 bracket OTD.
My wife argues let her get what she wants, $30-$32,000 truck, yolo.
I argue even though my daughter has close to 20k in savings right now she should hold onto the money to assist her when she decides to move out in the next two years or so.
Bitogers, what would you do? Anyone run into a similar conundrum with their family?
Her car is 10 years old and has just had a major $2,100 repair with 144,000 miles on it. The car has been reliable up to this point however being a Hyundai the trade in value is presently around $5,000 on a good day. This car has long since been paid off.
Over the past few weeks she and my wife have felt they now cannot trust the car for some reason and want to trade it in on a new truck for her. The car drives fine today but she is using this 'opportunity' to ask for a truck.
She is an adult however we are attempting to guide her in financial decisions as a young adult. My wife wants her to use $8,000 down along with the $5,000 trade in (estimated if nothing else breaks) then finance the rest. They are looking at $30,000 small trucks.
My daughter has some credit built up and, theoretically could afford a $400/month payment however I argue why would she want a payment like that at this point in her life.
I have expressed my sentiment and waffle between drive it longer and save money to let's trade it now while it still has some value and is in good running condition.
Although we have not checked with the bank yet I would imagine the wife and I would have to cosign for my daughter's loan. I suggested she look at a smaller less expensive newer vehicle with less than 10,000 miles and warranty left on it if she is going to do this. Say one year old used around the $20-$25,000 bracket OTD.
My wife argues let her get what she wants, $30-$32,000 truck, yolo.
I argue even though my daughter has close to 20k in savings right now she should hold onto the money to assist her when she decides to move out in the next two years or so.
Bitogers, what would you do? Anyone run into a similar conundrum with their family?
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