Family member wants to get me a lease
Discussion
Long story short - I've recently had a newborn and my family hate that I'm shuttling him around in a 2007 VW Polo.
My wife is beginning to hate the car (our first big purchase together!) and now a very generous family member has swooped in and offered to lease me a new vehicle for two years up to around £350 - £400 p/m. Everybody is telling me to take the offer - but I'm a little wary as there is talk of taking out an 'accommodation deal' which doesn't sit right with me.
Either that, or I get the car in my name and said family member transfers me the monthly. But I'm concerned - because I'll be remortgaging in around 12 months so not sure what the Bank will make of my little arrangement and how it'll affect my affordability (eventhough someone else is paying for the car)
I'm looking at the 2019 Golf GTD and we've found one for around the budgeted price.
Is there anything I should think about before taking up this offer from a family member e.g insurance, mortgage? It's just an unusual offer and so I want to make sure all my bases covered.
I'm also a little nervous as I've never leased before, and owning the Polo outright for 6 years has afforded me the ability to be a little less forgiving when, for example, curbing the alloys. My wife is a terrible driver also.
Friendly guidance (or harsh criticism!) and advice is very welcome!
My wife is beginning to hate the car (our first big purchase together!) and now a very generous family member has swooped in and offered to lease me a new vehicle for two years up to around £350 - £400 p/m. Everybody is telling me to take the offer - but I'm a little wary as there is talk of taking out an 'accommodation deal' which doesn't sit right with me.
Either that, or I get the car in my name and said family member transfers me the monthly. But I'm concerned - because I'll be remortgaging in around 12 months so not sure what the Bank will make of my little arrangement and how it'll affect my affordability (eventhough someone else is paying for the car)
I'm looking at the 2019 Golf GTD and we've found one for around the budgeted price.
Is there anything I should think about before taking up this offer from a family member e.g insurance, mortgage? It's just an unusual offer and so I want to make sure all my bases covered.
I'm also a little nervous as I've never leased before, and owning the Polo outright for 6 years has afforded me the ability to be a little less forgiving when, for example, curbing the alloys. My wife is a terrible driver also.
Friendly guidance (or harsh criticism!) and advice is very welcome!
Accommodation deal? Meaning what exactly?!
You take a lease in your name, they transfer you the money each month?! What if they change their mind at month 2? You are then stuck with a 2/3 year lease that YOU will pay for.
You must be off your head.
Insurance will be higher. You will pay for it.
Services will be more. You will pay for it.
It will affect a mortgage affordability inquiry as the lease and debt is your name.
If you are happy with your own car then tell others to sod off. You must be a soppy pushover if you are leasing a new car because others tell you to do so.
Time to grow a pair.
Absolutely staggering if this true/genuine.
You take a lease in your name, they transfer you the money each month?! What if they change their mind at month 2? You are then stuck with a 2/3 year lease that YOU will pay for.
You must be off your head.
Insurance will be higher. You will pay for it.
Services will be more. You will pay for it.
It will affect a mortgage affordability inquiry as the lease and debt is your name.
If you are happy with your own car then tell others to sod off. You must be a soppy pushover if you are leasing a new car because others tell you to do so.
Time to grow a pair.
Absolutely staggering if this true/genuine.
Edited by DuraAce on Wednesday 15th May 05:46
Why do they hate that you're using a 2007 polo, what's so bad about it?
As said above, and without knowing your family and their reliability etc, I'd be wary of getting in debt on the basis of promises. If they've got some $ and want to gift it to help you why not buy you a decent 3-5 year old car outright, which if I'm reading things right would probably be more use to you.
As said above, and without knowing your family and their reliability etc, I'd be wary of getting in debt on the basis of promises. If they've got some $ and want to gift it to help you why not buy you a decent 3-5 year old car outright, which if I'm reading things right would probably be more use to you.
DuraAce said:
Insurance will be higher. You will pay for it.
I agree with the rest of your post but this bit isn't usually true.My insurance is 25% cheaper on my leased car and that is more powerful and worth 4x more than my other car.
The growing a pair is the most accurate advice though!
My father in law is fairly generous and also taking the view that he can give us things now when we need it most (we have young kids), rather than hang on to it all intil he dies.
Great, but it does create little problems as strings seem to get attached. Nothing bad at all; he is a good man and just wants the best for us but he makes little comments about money decisions we make and we feel under pressure to do certain things. Its first world problems, and with him it really isn't much of an issue for us, but just be careful that you are not going to become indebted to the family member for the car, either financially or emotionally.
Great, but it does create little problems as strings seem to get attached. Nothing bad at all; he is a good man and just wants the best for us but he makes little comments about money decisions we make and we feel under pressure to do certain things. Its first world problems, and with him it really isn't much of an issue for us, but just be careful that you are not going to become indebted to the family member for the car, either financially or emotionally.
DuraAce said:
Accommodation deal? Meaning what exactly?!
https://www.nationwidevehiclecontracts.co.uk/guides/ask-nvc/accommodation-deals-and-car-leasingSo what happens at the end of the lease, does this family member continue to pony up the money or are you left to sort and fund a replacement yourself.
Personally I don't see an issue with a 2007 Polo, also £350 over 24m, amounts up to £8400; you can pick up a very good used car for that sort of money.
Queue the story of being transported as a baby in a carry cot strapped in the back of my parents A40 van with bungy cords while my sister sat on a cushion next to me :-)
OP, nothing wrong with a 2007 Polo.
Just gratefully decline stating the concerns that you detailed in your post.
They may then just gift you £5k to buy a newer/larger car and you're a winner.
OP, nothing wrong with a 2007 Polo.
Just gratefully decline stating the concerns that you detailed in your post.
They may then just gift you £5k to buy a newer/larger car and you're a winner.
Wot the previous posters said basically - I'd only rely on the family member promising to be good for the money each month if I was reasonably happy to enter into the lease agreement myself without any help. If this family member is uncle moneybags then I don't really understand why they don't offer to buy you a used car for the £8-10k they'd spend on the lease - you could get all sorts that's much newer and bigger than the Polo and at least then you're not stuck after two years. If they don't actually have that sort of money to give away then I'd be a bit concerned that they'd be good for the lease money tbh.
My view on this is doubtless be coloured by a dispute that has arisen in my wife's family - short version is that money was lent in the clear expectation that it would be paid back as soon as an inheritance was sorted out. Inheritance came, borrower spunked the money up the wall, now seems to think that he's doing the lender (who could do with the money) a favour by paying it back very slowly in dribs and drabs. Everybody was happy and rubbed along perfectly well before this transaction - that didn't actually involve all that much money - now there's resentment aplenty. Could easily see something similar happening here - benefactor decides that actually £350 a month is rather a lot, asks if you'd mind making the payments after a year or so. Kind of difficult to say no if they plead hardship of some sort, and after all they've paid for your car for a year, you should be grateful etc etc.
My view on this is doubtless be coloured by a dispute that has arisen in my wife's family - short version is that money was lent in the clear expectation that it would be paid back as soon as an inheritance was sorted out. Inheritance came, borrower spunked the money up the wall, now seems to think that he's doing the lender (who could do with the money) a favour by paying it back very slowly in dribs and drabs. Everybody was happy and rubbed along perfectly well before this transaction - that didn't actually involve all that much money - now there's resentment aplenty. Could easily see something similar happening here - benefactor decides that actually £350 a month is rather a lot, asks if you'd mind making the payments after a year or so. Kind of difficult to say no if they plead hardship of some sort, and after all they've paid for your car for a year, you should be grateful etc etc.
Bloody heck, I knew I'd get flamed. But nonetheless some great advice in some of these posts also.
The problem, from my wife's perspective, with the Polo is that it's a 2dr and has very limited bootspace - and one of the seats doesn't move forward. So the little one can only go in one way and with a little difficulty at that.
Maybe I've come across as a "soppy pushover", I'd disagree, personally I would be happy to wait for a little while to save some cash up to buy a used vehicle outright. But my wife is keen to get something before her mat leave ends. Nonetheless nothing has been signed or agreed just yet - thought I'd come here for some lovely advice.
This family member has been trying to convince me for the last few months. And I've known them for double digit years - they are trustworthy etc. etc. my due diligence on that end is relatively sound.
Nonetheless, really grateful for all of the advice - I really do think I should seriously consider the used route now....
The problem, from my wife's perspective, with the Polo is that it's a 2dr and has very limited bootspace - and one of the seats doesn't move forward. So the little one can only go in one way and with a little difficulty at that.
Maybe I've come across as a "soppy pushover", I'd disagree, personally I would be happy to wait for a little while to save some cash up to buy a used vehicle outright. But my wife is keen to get something before her mat leave ends. Nonetheless nothing has been signed or agreed just yet - thought I'd come here for some lovely advice.
This family member has been trying to convince me for the last few months. And I've known them for double digit years - they are trustworthy etc. etc. my due diligence on that end is relatively sound.
Nonetheless, really grateful for all of the advice - I really do think I should seriously consider the used route now....
Edited by RacingGreen0001 on Wednesday 15th May 10:06
I'd see what you can get for the Polo and then have a look for a decent used car, it's surprising what's actually out there for not too much money, especially if you look at bigger premium (but still reasonably reliable) cars such as Lexus GS models. Perhaps when you've found something you can see if they'd be willing to help with the difference?
ninjag said:
I'd see what you can get for the Polo and then have a look for a decent used car, it's surprising what's actually out there for not too much money, especially if you look at bigger premium (but still reasonably reliable) cars such as Lexus GS models. Perhaps when you've found something you can see if they'd be willing to help with the difference?
Exactly this. Small cars with desirable badges like the Polo are always worth something. Yours must be worth a couple of grand. Sell it privately and buy the best 5-door Ford Focus you can find for the money you get for it.My advice from observational experience is never to enter into financial arrangements with any family members, because it can turn poisonous very quickly. Seen it too many times in my parents' generation, we've become estranged from several relatives over s
t like this. Wouldn't touch with a bargepole.As others have said, WTF is wrong with a 2007 Polo??? My 18 month old bin-lid gets ferried around by mum in a 2003 mini cooper (would have to pry the keys from her cold dead hands to change it ... 
)
If your SWIMBO doesn't like the polo, cant you flog it / part-ex and top up for something a few years newer / seen as safer / SWIMBO wont hate / Family will approve of whilst not going on the never never?
) If your SWIMBO doesn't like the polo, cant you flog it / part-ex and top up for something a few years newer / seen as safer / SWIMBO wont hate / Family will approve of whilst not going on the never never?
Sounds like a role reversal... it's usually parents pleading with their offspring to stick with a paid outright, sensible and safe car and not opt into an extravagant lease!
My parents had a slew of Polos (ok, four) between 2000 - 2008, and they're great cars for a family. You're right to be weary - unless you FIL is happy to give you the full cost of the lease up-front, and let you keep any equity from selling your Polo?
My parents had a slew of Polos (ok, four) between 2000 - 2008, and they're great cars for a family. You're right to be weary - unless you FIL is happy to give you the full cost of the lease up-front, and let you keep any equity from selling your Polo?
The other thing perhaps worth considering is that if this family member is paying the lease then they may feel that they have rights on the car as well, such as to borrow it or they may start becoming very critical of how you are driving or using it?
The Polo you have has 4/5 NCAP stars so other than the inconvenience side of things I'd keep it or if the family member want to help then it's a gift payment or nothing at all. No come backs, no interference.
The Polo you have has 4/5 NCAP stars so other than the inconvenience side of things I'd keep it or if the family member want to help then it's a gift payment or nothing at all. No come backs, no interference.
This sounds like the classic paranoia that is driving The Jones' to buy ever-larger, brand new 'SUVs', because anything smaller or older is apparently like gaffa-taping your child to the bonnet and waiting for something bad to happen 
The Polo should be perfectly safe if it is, as mentioned above, a 4/5 star NCAP-rated car.
If perceived safety concerns are driving the pressure, perhaps you and your wife could enroll on IAM and/or RoSPA advanced driving courses - then you can be safer whatever you are driving, rather than relying only on the box you are travelling in to save you from harm,
If 2-doors is a PITA, then that seems a reasonable justification to seek something different, but it doesn't mean you have to spend £400/month to get something suitable.
If a relative is happy to give you £400/month over two years, perhaps they'd like to get a loan for £10k and give you the cash, then they can pay back the loan directly?
And if they want you to have a new car, because apparently new=safe, use that £10k to get a brand new Dacia:
https://www.dacia.co.uk/vehicles/our-range.html
The Polo should be perfectly safe if it is, as mentioned above, a 4/5 star NCAP-rated car.
If perceived safety concerns are driving the pressure, perhaps you and your wife could enroll on IAM and/or RoSPA advanced driving courses - then you can be safer whatever you are driving, rather than relying only on the box you are travelling in to save you from harm,
If 2-doors is a PITA, then that seems a reasonable justification to seek something different, but it doesn't mean you have to spend £400/month to get something suitable.
If a relative is happy to give you £400/month over two years, perhaps they'd like to get a loan for £10k and give you the cash, then they can pay back the loan directly?
And if they want you to have a new car, because apparently new=safe, use that £10k to get a brand new Dacia:
https://www.dacia.co.uk/vehicles/our-range.html
Get a private plate for the polo and some plasti dip.
A quick plate and colour change £500, then tell them its a new one. Actually, scrap that idea. the car is probably only worth £500 anyway. (nothing wrong with that either)
Family and finances should never mix, you will be in for a world of hurt.
A quick plate and colour change £500, then tell them its a new one. Actually, scrap that idea. the car is probably only worth £500 anyway. (nothing wrong with that either)
Family and finances should never mix, you will be in for a world of hurt.
Family member offering to spend £9,600 on a two year lease, that's pretty generous.
I'd be thanking them for their generosity, politely declining as it will affect your credit rating, and suggesting that if they really wanted to help they could help you fund a safe, reliable used family car for £4-5k which will still be worth a decent amount in two years' time.
We've run a 54 plate Honda FR-V from 60k to 120k miles over the last 7 years with maintenance coming in at an average of £400/yr. It was immaculate when we got it but is now looking battle scarred from the aforementioned wifely driving - she is really not a car person - such that when I took it to the local Wickes and found that someone had allowed a large trolley to run into the door and dent it without leaving a note I just shrugged, got in and drove off.
Likewise when she kerbed all the alloys, smashed the rear bumper and light by reversing into a wall, all of which were blamed on the stressful business of being a busy mum with a child to look after I just went "ah well, so what!" These kind of things would have sent me apoplectic with rage if she had done them on my own car or a leased vehicle that someone else was paying for, it is somewhat cathartic to run a shed like this and not care about the battlescars it picks up along the way.
I'd be thanking them for their generosity, politely declining as it will affect your credit rating, and suggesting that if they really wanted to help they could help you fund a safe, reliable used family car for £4-5k which will still be worth a decent amount in two years' time.
We've run a 54 plate Honda FR-V from 60k to 120k miles over the last 7 years with maintenance coming in at an average of £400/yr. It was immaculate when we got it but is now looking battle scarred from the aforementioned wifely driving - she is really not a car person - such that when I took it to the local Wickes and found that someone had allowed a large trolley to run into the door and dent it without leaving a note I just shrugged, got in and drove off.
Likewise when she kerbed all the alloys, smashed the rear bumper and light by reversing into a wall, all of which were blamed on the stressful business of being a busy mum with a child to look after I just went "ah well, so what!" These kind of things would have sent me apoplectic with rage if she had done them on my own car or a leased vehicle that someone else was paying for, it is somewhat cathartic to run a shed like this and not care about the battlescars it picks up along the way.
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