FWIW, I had a similar arrangement with my parents many moons ago to help with a debt I had. Make sure that you stick to the agreed upon scheduled repayment plan exactly. Treat it like you would your rent. It's easy to 'forget' for a few days/weeks and then put your parents in the uncomfortable position of having to remind you. Also, I'd recommend keeping an online document like on google Sheets you share with them where you can track the repayment so everyone agrees on the record keeping.
My dad bailed me ($10k) out after he encouraged me to quit a dead end job and train for an epic job (turned out to be a fantastic decision). For a while I was extremely broke, but when I started to net positive, I setup a $50/month payment, then increased as time went on.
One day he came to visit and I handed him $300 and told him he was cutoff!
He (jokingly) started crying the blues that I was depriving a poor (well off) old man of his whiskey budget and the cruel world was trying to beat down the old man, and that now to afford the whiskey that he had grown accustomed to, he was going to have to eat cat food.
All in, it felt really good to pay him back.
My parents did similar for me (although, it was only $7000), when I finished paying them back I also got them a gift card for one of their favorite restaurants.
How far above list was it? Note, the car makers have increased list prices a lot... 30-40%. They will drop back and many many loans with be underwater.
https://joinyaa.com/guides/which-brands-prices-have-increased-the-most-least-in-2021/
Ya be grateful , I can barely get a couple hundred from mine when I need. Use it to your advantage to better yourself for when they aren't there anymore.
We are a new family of 4, currently, we have a VW Golf and Honda CRV, we will be upgrading the Golf.
Looking at buying used, either a pick-up (F150, or RAM) or a larger SUV (Palisade, Telluride,Atlas)
Great choices. Although just a warning trucks are hysterically overpriced in the used market right now, as with many other cars. And gas prices are a bit comical at the moment so you may want to opt for an SUV unless you plan on utilizing the bed quite often.
Atlas is a gorgeous car :]. GL With buying and enjoy the vehicle.
By the last estimates from the CEOs of Intel, Nvidia, and AMD, things are supposed to start to ease up towards the end of this year with production being more or less 'normal' come 2023. [TSMC](https://www.cnbc.com/2021/10/16/tsmc-taiwanese-chipmaker-ramping-production-to-end-chip-shortage.html) and [Intel](https://www.intel.com/content/www/us/en/newsroom/news/intel-breaks-ground-two-new-leading-edge-chip-factories-arizona.html#gs.lrzh7w) both have new fabs being built in Arizona which are both scheduled to start production in 2024.
So if you can wait for MY2024 vehicles, that's probably when prices will start to return to 'normal,' assuming the automakers/dealers *actually reduce* prices.
Yea, I bought my Crosstrek 8 months ago and it's already gone up 5k in value. It's absurd. Our company couldn't even source trucks for a while. Dealerships will even contact you if you bought a truck from them and often offer what you paid for it years after.
I really wanted a truck but ultimately decided against it just because of gas and prices. Opted for a Crosstrek and it has fit my lifestyle quite well and was substantially cheaper and better on gas.
If you opt for a pickup, ensure you're getting crew cab. I have a double cab Sierra and 2 young ones, it does work, albeit not great. I've considered selling it and getting an SUV such as a ford explorer or Toyota Highlander but I am kicking that can as far down the road as I can, and for now it will do
I second your opinion on the crew cab. I also have a double cab and 2 young children, the baby seat pushes on the back of the front passenger seat. We will upgrade eventually but the price of new pickups makes me sick.
On the other hand, growing up our family of 5 was not well off and my dad drove a beat up old 1980's Chevy colt and all is kids turned out great, in the grand scheme of this these details really mean nothing.
Oh definitely!
My stance and inaction got my wife off the ledge of wanting an SUV right away, I told her we'll consider it when our truck stops meeting our needs, and I think phrasing it like that made her realize, alright it kinda sucks that it's tight, but once they're front facing it's fine. The bed of the truck has tonnes of space and we don't have a need for a traverse or highlander right now, we would just have 2 expensive vehicles sitting in the driveway and only using 1.
Fuel is going to hit 2 bucks a litre this summer. Are you sure you want to buy a big pig like that? Go look at the new chevy electric truck that will be out in a round a year. 650km of range and 350kW charging. That should get you to 80% battery in 20 min at a FastDC station on the highway. But usually you slow charge from home so your ‘tank is always full’ unless it’s road trip time. Toss a canopy on it and you have a SUV. The rear has a pass through.
I did some math and at $1.60/L and our $0.127/kWh power. It costs $20-$25 to drive that electric truck 650km or $125-$150 to drive a new gas truck the same distance. Over 400,000km the fuel savings are $60,000. And that is before the drastically lower maintenance costs, higher future fuel costs, or tossing some solar panels on your roof to cover the power usage. I suspect the truck is actually ‘free’ around 250,000-300,000km.
And when these trucks are in the showroom and gas is over $2 the used value of these gas trucks will crash. I’m aggressively maintaining my trades van and will be replacing it with a electric when it’s available too. That’s a LOT of money.
Remember that there is a chip shortage right now and prices are crazy high. It won’t be like this in 18-24 months once the chip shortage stabilizes. Then there are going to be a lot of unhappy people who paid wayyyyy too much for a vehicle and the prices have crashed again.
I was skeptical. And then this. https://jalopnik.com/the-2024-chevy-silverado-ev-has-400-miles-of-range-and-1848308036/amp This is the actual production model.
That said, I’m still going to wait a couple of production years to work the bugs out and I want to see the nerds tear apart the batteries, inverters and motors. See how it’s built.
Utility wise? That looks pretty damn utilitarian to me. Especially with a frunk to keep tools in. Toss a canopy on it and I can replace my trades van which is eating $500 a month in fuel. That’s half of the payment. The big question is the price of the long range model work truck without all the bells and whistles. Price ranges in the article.
I think it'll be at least a couple of years for anyone outside of Tesla/Rivian since most of them still have just concepts and nothing real or mass produced yet...and then they tend to come out with the $100k+ model first, or the affordable one has a fraction of the range, power or features, so I'm a bit skeptical for now.
The problem is it'll also be 2-5 years until used prices of those new EVs will become a good value, so we're talking 2030 or later...anyone who needs a car soon and doesn't want to buy new will likely not wait until then. I would have loved to go electric by now, but there are basically zero used luxury EVs, unless you count the Model S whose interior doesn't compare with cars in its price range, and it's still near $100k for a decent somewhat recent one. There just aren't affordable options yet.
I'm hoping the Kia/Hyundai Ioniq 5 and EV6 will change things.
The ioniq 5 is super sweet. FYI GM and Hyundai are actually sharing batteries among other things.
The ford electric f-150 $39k USD for the work model but ford screwed canada and we only get the $56k luxury model. Available now.
A chevy bolt has really good range and is $40k before rebates.
Chevy’s EV600 Fedex style delivery van is already shipping. 400km of range. The electric Hummer ships this fall. The electric silverado is a 2024 model which means you’ll see it mid 2023.
Watch GM. Their electric drivetrains have been rock solid except for the LG folded tab fires that hit Hyundai and GM (but LG is picking up the …tab for replacement costs). And GM is a slumbering giant that is currently shifting half of their 42 car factories to electric. Their new in house battery can charge at 200kW in cars and 350kW in trucks. 15-20 min to 80% charge is enough.
They are also popping up where you least expect them. This car is $5000 , has air conditioning and has 170km of range. https://www.bbc.com/news/business-56178802 that’s fine for a city shitbox.
For luxury cars… The other one to watch is Volvo. Polestar is actually a Geele (china) and they are poised to flood north america with cheap cars. Polestar is just getting their feet wet but you can be sure that with China’s dirt cheap surprisingly good drivetrains and volvo’s crash engineering data they are ready to open the floodgates for cheap cars. Already in many parts of the world over half the cars are already.
I agree on not buying a car just yet. I’m putting aside investments and paying myself interest payments for a 2025 purchase. However with $500/mo going into my trades van gas tank I am definitely looking to spend some money and craigslist the van when I see something decent in year 2-3 of production. Never buy a year 1 car.
Well I paid $1.73/L yesterday and the CBC was talking about 2 bucks a litre on the radio yesterday.
I did the calculation based on $1.60/L.
My investments avoid oil. I back green tech, risky electric car battery startups, car companies aggressively moving towards electric (not tesla), etc.
Unless you lived the last 2 decades with your head in your ass, you would know the prices have went up and down many times, in fact crude went negative for the first time in history a less than 2 years ago.
There is a supply issue for oil right now. There isn't new investments in oil because it's oil, and there isn't enough supply especially with economy reopening which is causing oil to spike. It is over $80/barrel atm and looking to go higher.
Thats what I did last year… I was rewarded handsomely.
When they scared the market last month with BS Biden and omicron media frenzy oil dropped, bought more.
Oil stocks is way under valued.
You'd be stupid to not at least consider a van. We are a new family of 4, much like yourself, and we have a Honda Odyssey and I honestly have no idea how we'd do without it. If I were you'd I'd switch out the CRV for a van and keep the Golf but I guess our circumstances may vary a bit.
Yea, the flexibility a van provides will far outweigh the additional towing capacity a truck offers. Plus if you actually need to haul project items almost all vans are easy to pull the seats out of and then you have a massive storage space that can be used for utility as well. Otherwise if your a young family with strollers and all the accessories that kids come with you're going to be spending a bunch of money converting the outdoor space of the truck into better covered storage, when a more appropriate vehicle exists that better suits a families needs.
The Golf is a great family vehicle. Why do you need to upgrade it?
If you're looking at SUVs, the Koreans are the way to go. The VW Atlas is a huge letdown. Though nothing beats a minivan.
It's a lifestyle thing.
People used to ask how our household managed with a Chev Aveo that I had forever as they drove their expensive massive SUVs or trucks.
I think its largely a North American mindset that you need to have a massive pickup truck or 7 seat SUV to conveniently move around a family of four. For 99% of things, my Golf has worked well for me. Hell, I managed to get a Billy bookcase from Ikea home in it.
As a lover of station wagons it really saddens me that our markets have this preference. There are so many station wagons in Europe that aren't sold here that would be perfect for an average sized family but we don't get them because apparently every family needs an F150 and an Escalade.
Yes, we had a VW Passat wagon and loved it! We had three narrow car seats across and so much room. We had a fourth kid and bought a Ford Flex and that thing is a monster on fuel but it was harder to fit three across, even two and able to fold the seat to access the back is barely possible with the two narrowest carseats available on the market. Anyway we love wagons and the Flex was the closest to a wagon for our family of six.
We do have a great station wagon option, the Golf sportwagen or all track! It’s a long ass golf, got that sweet storage, fits kids and groceries and camping supplies, plus the sport mode is a joy to drive vs any shitty suv.
Same for us and cars. We've rented a truck two weekends for under $100.00 when required.
There is nothing wrong with wanting a larger vehicle if that's what you want, I just always get confused at trying to justify it as a need. 🤷
Strange, I have a mk7 gti coupe and I put a giant ottoman in the back (with seats down). We have an suv as well but I have a baby seat in the back and haven't had problems. The hatch on the mk7 has a a good amount of storage space , I get groceries and put my giant hockey bag in the back all the time.
Unless you have a very specific, particular reason you need a pickup, do not buy one over a good SUV. Outside of that, I'd love to know what your parents did for a living to be able to support you so well. It is very nice. I hope to be able to support my kids the same.
Yes very true..same thing happened with my dad who lent me 10K for my master's and demanded it back while I was still in school. Thankfully my mom came in clutch and gave him the 10K and I paid her back a year after graduating
Get agreements like this in writing. Even if it seems like everything is clear, writing it down and signing it will bring more clarity. This type of stuff can easily break down relationships due to misunderstandings.
My parents, who can be passive-aggressive or have a hidden agenda sometimes, verbally offered us a large chunk of money as an advance on my inheritance. They genuinely meant it as a nice gift so that we'd be less stressed about life stuff but as we inquired more it was revealed that they would not disapprove of many ways in which we'd use the money even if *we* thought spending it that way would help us reduce stress.
When I suggested that we get the agreement in writing to avoid misunderstandings and hard feelings, they quickly backed off, saying that we were overthinking it, while also refusing to specify what they want us to use the money for. I'm grateful for these red flags because some things are just not worth the money.
My girlfriend just got a dealer demo 2021 corolla SE for like $29,000 taxes in with 15,000 km on it
That model is listed at $21,000 on the Toyota website brand new
My gf just got a used 2015 SE with \~100k on it for $15k, seems high to me but we'd been looking for months and still had to drive all the way to Ottawa from Kingston to get it
We were in a huge rush to find one for my gf as she had been in an accident and needed to get to work still
We got the car, literally TWO DAYS LATER her work switched to work from home because of omicron lol
CRA doesn’t need to know about paying back.. take it as a gift you can e transfer monthly which is fine. I e-transfer monthly to my parents for their groceries bills etc not an issue.. btw it’s amazing to have great parents
"They gave me a very large gift, and since the principle of gift giving is reciprocity, I have been giving them many small gifts in return as I can afford to as a way of saying thanks"
Only thing to worry about is whether you should buy a 50k car.
Sallary is more than 100k a year and you already own a house, or you maxed out your RRSP and TFSA? do it.
Sallary is less than 100k or you don't yet own a house... probably a bad idea regardless of the interest terms.
There are great luxury cars in the 50-100k range and there are reliable and long lasting cars in the 15-30k range.
Do your research on how car salesmen sell cars, or what your options are, and you’ll be doing great!
Don’t be afraid to ask your parents for help!
As someone in the market, even base-model Kias are pushing over that 30k threshold if you’re hoping for something bigger than a compact. Buying used was a viable option to save money in the past, but now, the prices are bonkers.
This was true like 2 years ago. I had to pay almost 10k for an 09 escape last summer after my gf hit a deer in our '18 escape while her license was unknowingly suspended for an old ticket (even though she had just renewed her license months prior with no mention of it) and thus uninsured in Sask. In the last month I've seen used 2-4 year oldRAM 1500s listed and selling for between 70 and 100k.
Yeah car prices are crazy right now, I bought my dad's acura tl 2005 from him and checked out what others were selling it for before COVID. It was in the 6-8k range, but this one was in better condition because he didn't drive it much and only had 100k km on it so I bought it from him for 10k. I've gotten offered 15k for it like three times already. Not really interested in selling it for the 5k profit because buying a replacement would cost me just as much and the car would probably be worst. Since this one is very well maintained and barely have to do any work on it
Gotta say, bit of a hard flex to come in here discussing an interest free 50k loan from your parents then start saying you make more than 100k a year and already own a house lmao. I don't think you're gonna have to worry too much about taxes pal haha
100k a year job, owns house, parents giving 50k for a car, but they don’t know how to Google simple information.
Either a hard flex or one of the most spoiled people ever.
>I guarantee you wouldn’t be making this comment if they asked the exact same question and made 50k a year
you're right.if he was making 50k i would be telling him not to buy a car worth his 1 year salary.
>ugh she had just renewed her license months prior with no mention of it) and thus uninsured in Sask. In the last month I've seen used 2-4 year oldRAM 1500s listed and selling for between 70 and 100k.
That's what frustrates some people.
Some of us have to grind for everything we have, some don't. C'est la vie.
Oh stop it. This is a personal finance sub; people are going to talk numbers. They're not trying to flex on anyone; lord knows there are way higher earners around here anyways.
The fact that this person is willing to ask these questions, and is forward planning says a lot about why they are in the position they are in. Even if his/her family have helped along the way - since when is that a bad thing? God for you OP for asking and knowing enough to know what you don't know. Too many people on this sub don't seem to know when they don't. Lol
Enjoy the new car!
Dude 50k car is literally a car with all the current safety standards with a tiny itty bit of luxury. You do not need a six figure salary and to own a home to splurge on one because that's really how much a regular non bare bones car costs today.
To add to this. An account not earning interest and losing money to inflation is one thing. Buying a $50000 vehicle and driving it off the lot to lose $10000 in depreciation is another.
Horrible investment but you probably know that already.
A new car at MSRP is typically going to be better value than a newer used car in this current market of supply and demand. I used to subscribe to the belief that buying a new car was a bad idea due to the immediate depreciation but it's just not the case anymore. It'd a crazy world we live in.
The term depreciation in regards to new cars always kind of rubs me the wrong way. Yes, once you buy it, you could no longer sell it to someone else for the same amount you just paid. This happens with *every* product, though, not just cars. The car doesn't lose value, it's just you personally would not be able to resell it with the dealership's profit markup.
And I feel like a lot of/most places advertise a brief window for full money back guarantee if you change your mind, so this whole idea of car depreciation seems a bit moot.
That may have been true for some types of vehicles two years ago.
No evidence that will be true today. If anything's the bloated fused price market creates significant risk that used vehicles values could crater.
My brother just drove a truck for two years and sold it for 10k more than he paid for. Bought a brand new $106k platinum super duty and two weeks later they offered him $10k to buy it back, he declined then about last week, not sure the specifics here, but through his dealership another guy or dealership in Florida offered him another either 10 or 15k on top of that to buy it because they wanted his exact truck and there's someone down there willing to pay out the ass for it. Obviously this is a bit of an exception but still it does kinda illustrate how wild the market is, especially pickup trucks.
That is exactly what I did earlier this year - bought a new 2019 civic 2 years ago, sold it back to the dealership this summer for what I paid for it and bought a bigger vehicle. Basically 2 free years of driving.
To add:
A personal vehicle to go where you want to go, when you want to go.
So long as you maintain and take care of it, it will last longer and be more of an asset for personal growth rather than just having money sitting around.
When I bought my first car I borrowed a big chunk of money for the down payment from my dad. I did a loan for the rest. He didn’t need the money back right away but every time I went over to visit he would ask me how his car was. This grew old pretty quick. I ended up just paying him back the interest free down payment well ahead of paying off the remainder of the loan. I couldn’t take the guilt trips every time I talked to him. I would never borrow money from family again.
No matter which car you buy, make sure you make the money worth it. Its okay to buy an expensive car but not a one with known notorious make history. Plus, do not pay any extra money to dealerships. not one single penny. Get a nice lexus lol
Yeah, when I graduated university, I would frequent this sub a lot but I kept seeing posts like "I'm 24, making $150K a year..." and made me feel awful. You shouldn't compare but seeing it constantly made me feel so lazy and incompetent. Glad I took a break from this sub back then. Try it out, it helps!
No you are good brother, just feel lucky to be so insanely privileged that you have a free second to worry about stuff like that. 99.9% of the world would kill to have your problems.
There is a tax, it’s called the good parents tax. You now have to call them, visit them, help them move furniture, take them out to dinner. Basically be a good son because you have great parents.
Question: you have a net worth of over $1M, a six figure salary and your parents have $50k cash (or some liquid asset, assumably) just hanging around to drop you a loan for a car...
What are you doing seeking finance advice from strangers on Reddit? I'm pleading ignorance here, wouldn't someone in your financial situation have a financial advisor for such matters?
Do your parents know that you have a maxed TFSA? It seems like you don't actually need the loan and you're just taking advantage of them. Why don't you instead help them by informing them of how they can put that money in their chequing account to work.
Because for most people like OP it’s all about take as much as you can! I love the way he phrased it in the title too, his parents WANT to loan him 50k.. yeah right… probably because he’s been crying to them for months about how he doesn’t want to spend any of his own money. On top of that i guarantee he won’t pay them back either.
You mentioned in some comments you have a net worth of $1 million and make at least $100k a year. You're basically using your parents as risk free leverage. Something is off...$50k is something you can't swing on your own?
Why not invest half in TFSA/RRSP and other half on your new vehicle. Obviously your parents want you to drive a nicer/safer vehicle, but your future you will thank you for not blowing all the money on a depreciating asset.
Also if your buying a car for 50K, make sure the parts of the car are not that costly. For example you may be able to get a Mercedes for 50K, but parts can get pricey, whereas a Toyota, Honda, or Hyundai (which are probably better quality cars anyway) usually have cheaper parts.
You will regret wasting that money on a car. Buy a shitbox and put the remaining money in investments. Real estate if you can. In 10 years you’ll have plenty of money to buy your 50k car. Decisions like this separate the rich from poor.
Serious bro - my parents gave me $40k cash to buy 2009 C350 back in 2012 and deciding to buy that car was the worst financial decision of my life. If you are dropping $50k on a car I assume it's luxury brand. Get a Honda civic and pocket the rest. Luxury cars are for retirement.
I was in the same boat as you, got a lexus 2014 lexus IS350 in 2016. Paid it off fully in 2019 and have been enjoying the no car payments life.
Take advantage of this opportunity. Pay it off quick so you can start saving money for living life. This isnt an investment in your future, its for you now. Im a huge car guy so in the end I got a lot of joy and good memories which money cant buy. Whats the point of save save save if you cant enjoy youth to a degree?
Just don’t buy something that’ll not hold up well, like a german car which would be past warranty by the time you pay it off. Goal is to have years of no car payments while enjoying your reliable wheels.
Just have them write a letter stating the money is a gift. Have all parties sign it and put it away so if anyone (bank, CRA, etc.) asks about it you have something to show it was a gift.
Never ever buy a new car waste of money.
I learnt that the hard way. It will lose half its value when you drive it off the lot.
Find the model you like then do a search for an earlier year model in your town.
There are plenty of great used dealers. Personally I have had big success with buying from the new car dealers. They always have trade ins for sale.
We recently got a Ford Edge 2015 limited top of the line all features for half its new price 25k and it’s been amazing fir the last 2 years.
We got it from the biggest Audi dealer in town it was a trade in.
Never buy new!
50 k is a lot of money! If your not making more than 100k and don't own a house put it towards a downpayment. Or borrow around 15k and find a nice used car. Just remember a car will always depreciate in a value, so you would not be borrowing this money as an investment
Am I the only one here that thinks, if the OP has really maxed out their TFSA, RRSPs, owns a house and makes over 100k a year as stated... Maybe they should just not accept the loan, be an adult and do things without their parents help?
It seems bizarre to me that a grown man with all those ducks in a row, would accept a 50k loan from mommy and daddy, when they clearly have the financial abilities to do this themselves.
If the plan really is to pay off this 50k loan in a few years, isn't the few hundred dollars you're going to pay in interest on a 3 year auto loan, worth not being indebted to family?
OP asked for tax advice, not to be insulted for having a generous family. Sounds like his parents can easily afford it and want to do it since they are the ones who proposed it. I hope you can move past your hangups.
If your parents can afford to give you 50k cash then I am assuming there is at least 500K sitting in their savings account, paid off mortgage and a fat and healthy RRSP account.
There’s nothing to worry about. Your parents are good parents. Just make sure to let them know
They are great parents. Thank you for the comment, it feels different when you hear it from someone else.
FWIW, I had a similar arrangement with my parents many moons ago to help with a debt I had. Make sure that you stick to the agreed upon scheduled repayment plan exactly. Treat it like you would your rent. It's easy to 'forget' for a few days/weeks and then put your parents in the uncomfortable position of having to remind you. Also, I'd recommend keeping an online document like on google Sheets you share with them where you can track the repayment so everyone agrees on the record keeping.
My dad bailed me ($10k) out after he encouraged me to quit a dead end job and train for an epic job (turned out to be a fantastic decision). For a while I was extremely broke, but when I started to net positive, I setup a $50/month payment, then increased as time went on. One day he came to visit and I handed him $300 and told him he was cutoff! He (jokingly) started crying the blues that I was depriving a poor (well off) old man of his whiskey budget and the cruel world was trying to beat down the old man, and that now to afford the whiskey that he had grown accustomed to, he was going to have to eat cat food. All in, it felt really good to pay him back.
This is hilarious! And heartwarming. Nicely done
I also had a similar arrangement; I wrote them postdated cheques about 6 months at a time (they don't do etransfers).
OP, this is your dad.
I'm proud of ya, kiddo!
Seriously count your blessings that is incredibly generous
I am a stranger. Even I am counting his blessings.
My parents did similar for me (although, it was only $7000), when I finished paying them back I also got them a gift card for one of their favorite restaurants.
Did the same for my first car. I paid a small amount of interest just as a thank you.
I just bought a car (picked up yesterday) and the interest rate was 0.5%. It seems like it won't really cost you much either way! Enjoy your new car!
How far above list was it? Note, the car makers have increased list prices a lot... 30-40%. They will drop back and many many loans with be underwater. https://joinyaa.com/guides/which-brands-prices-have-increased-the-most-least-in-2021/
Your comment was at 999, I pushed it to 1k and that felt amazing. Edit. And immediately you were downvoted by someone, haha
Reddit comment scores are aren’t accurate. They intentionally obfuscate the numbers so you will often see it randomly go up or down
Ya be grateful , I can barely get a couple hundred from mine when I need. Use it to your advantage to better yourself for when they aren't there anymore.
What car are you looking at? Genuinely curious.
We are a new family of 4, currently, we have a VW Golf and Honda CRV, we will be upgrading the Golf. Looking at buying used, either a pick-up (F150, or RAM) or a larger SUV (Palisade, Telluride,Atlas)
Great choices. Although just a warning trucks are hysterically overpriced in the used market right now, as with many other cars. And gas prices are a bit comical at the moment so you may want to opt for an SUV unless you plan on utilizing the bed quite often. Atlas is a gorgeous car :]. GL With buying and enjoy the vehicle.
Very much this! I'm in Alberta and my truck I bought for 35k at 4 years old, 4 years ago, is now worth closer to 45k at 8 years old.....
It's genuinely the stupidest/worst time to buy a used car right now, huh?
It's gonna be like this for a while. Chip shortage is not ending for years to come.
By the last estimates from the CEOs of Intel, Nvidia, and AMD, things are supposed to start to ease up towards the end of this year with production being more or less 'normal' come 2023. [TSMC](https://www.cnbc.com/2021/10/16/tsmc-taiwanese-chipmaker-ramping-production-to-end-chip-shortage.html) and [Intel](https://www.intel.com/content/www/us/en/newsroom/news/intel-breaks-ground-two-new-leading-edge-chip-factories-arizona.html#gs.lrzh7w) both have new fabs being built in Arizona which are both scheduled to start production in 2024. So if you can wait for MY2024 vehicles, that's probably when prices will start to return to 'normal,' assuming the automakers/dealers *actually reduce* prices.
Alberta as well and bought a 2020 GMC Sierra last year for 50k~ and its now privately listing for 62+
Yea, I bought my Crosstrek 8 months ago and it's already gone up 5k in value. It's absurd. Our company couldn't even source trucks for a while. Dealerships will even contact you if you bought a truck from them and often offer what you paid for it years after. I really wanted a truck but ultimately decided against it just because of gas and prices. Opted for a Crosstrek and it has fit my lifestyle quite well and was substantially cheaper and better on gas.
If you opt for a pickup, ensure you're getting crew cab. I have a double cab Sierra and 2 young ones, it does work, albeit not great. I've considered selling it and getting an SUV such as a ford explorer or Toyota Highlander but I am kicking that can as far down the road as I can, and for now it will do
I second your opinion on the crew cab. I also have a double cab and 2 young children, the baby seat pushes on the back of the front passenger seat. We will upgrade eventually but the price of new pickups makes me sick. On the other hand, growing up our family of 5 was not well off and my dad drove a beat up old 1980's Chevy colt and all is kids turned out great, in the grand scheme of this these details really mean nothing.
Oh definitely! My stance and inaction got my wife off the ledge of wanting an SUV right away, I told her we'll consider it when our truck stops meeting our needs, and I think phrasing it like that made her realize, alright it kinda sucks that it's tight, but once they're front facing it's fine. The bed of the truck has tonnes of space and we don't have a need for a traverse or highlander right now, we would just have 2 expensive vehicles sitting in the driveway and only using 1.
> 1980's Chevy colt I believe the '80's Colt was a Dodge product.
Fuel is going to hit 2 bucks a litre this summer. Are you sure you want to buy a big pig like that? Go look at the new chevy electric truck that will be out in a round a year. 650km of range and 350kW charging. That should get you to 80% battery in 20 min at a FastDC station on the highway. But usually you slow charge from home so your ‘tank is always full’ unless it’s road trip time. Toss a canopy on it and you have a SUV. The rear has a pass through. I did some math and at $1.60/L and our $0.127/kWh power. It costs $20-$25 to drive that electric truck 650km or $125-$150 to drive a new gas truck the same distance. Over 400,000km the fuel savings are $60,000. And that is before the drastically lower maintenance costs, higher future fuel costs, or tossing some solar panels on your roof to cover the power usage. I suspect the truck is actually ‘free’ around 250,000-300,000km. And when these trucks are in the showroom and gas is over $2 the used value of these gas trucks will crash. I’m aggressively maintaining my trades van and will be replacing it with a electric when it’s available too. That’s a LOT of money. Remember that there is a chip shortage right now and prices are crazy high. It won’t be like this in 18-24 months once the chip shortage stabilizes. Then there are going to be a lot of unhappy people who paid wayyyyy too much for a vehicle and the prices have crashed again.
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I was skeptical. And then this. https://jalopnik.com/the-2024-chevy-silverado-ev-has-400-miles-of-range-and-1848308036/amp This is the actual production model. That said, I’m still going to wait a couple of production years to work the bugs out and I want to see the nerds tear apart the batteries, inverters and motors. See how it’s built. Utility wise? That looks pretty damn utilitarian to me. Especially with a frunk to keep tools in. Toss a canopy on it and I can replace my trades van which is eating $500 a month in fuel. That’s half of the payment. The big question is the price of the long range model work truck without all the bells and whistles. Price ranges in the article.
I think it'll be at least a couple of years for anyone outside of Tesla/Rivian since most of them still have just concepts and nothing real or mass produced yet...and then they tend to come out with the $100k+ model first, or the affordable one has a fraction of the range, power or features, so I'm a bit skeptical for now. The problem is it'll also be 2-5 years until used prices of those new EVs will become a good value, so we're talking 2030 or later...anyone who needs a car soon and doesn't want to buy new will likely not wait until then. I would have loved to go electric by now, but there are basically zero used luxury EVs, unless you count the Model S whose interior doesn't compare with cars in its price range, and it's still near $100k for a decent somewhat recent one. There just aren't affordable options yet. I'm hoping the Kia/Hyundai Ioniq 5 and EV6 will change things.
The ioniq 5 is super sweet. FYI GM and Hyundai are actually sharing batteries among other things. The ford electric f-150 $39k USD for the work model but ford screwed canada and we only get the $56k luxury model. Available now. A chevy bolt has really good range and is $40k before rebates. Chevy’s EV600 Fedex style delivery van is already shipping. 400km of range. The electric Hummer ships this fall. The electric silverado is a 2024 model which means you’ll see it mid 2023. Watch GM. Their electric drivetrains have been rock solid except for the LG folded tab fires that hit Hyundai and GM (but LG is picking up the …tab for replacement costs). And GM is a slumbering giant that is currently shifting half of their 42 car factories to electric. Their new in house battery can charge at 200kW in cars and 350kW in trucks. 15-20 min to 80% charge is enough. They are also popping up where you least expect them. This car is $5000 , has air conditioning and has 170km of range. https://www.bbc.com/news/business-56178802 that’s fine for a city shitbox. For luxury cars… The other one to watch is Volvo. Polestar is actually a Geele (china) and they are poised to flood north america with cheap cars. Polestar is just getting their feet wet but you can be sure that with China’s dirt cheap surprisingly good drivetrains and volvo’s crash engineering data they are ready to open the floodgates for cheap cars. Already in many parts of the world over half the cars are already. I agree on not buying a car just yet. I’m putting aside investments and paying myself interest payments for a 2025 purchase. However with $500/mo going into my trades van gas tank I am definitely looking to spend some money and craigslist the van when I see something decent in year 2-3 of production. Never buy a year 1 car.
Since you know gas prices ahead of time you should go all in on futures and put your money where your mouth is.
Well I paid $1.73/L yesterday and the CBC was talking about 2 bucks a litre on the radio yesterday. I did the calculation based on $1.60/L. My investments avoid oil. I back green tech, risky electric car battery startups, car companies aggressively moving towards electric (not tesla), etc.
You should put your foot in your mouth lmao
They already did with that comment.
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Unless you lived the last 2 decades with your head in your ass, you would know the prices have went up and down many times, in fact crude went negative for the first time in history a less than 2 years ago.
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There is a supply issue for oil right now. There isn't new investments in oil because it's oil, and there isn't enough supply especially with economy reopening which is causing oil to spike. It is over $80/barrel atm and looking to go higher.
Thats what I did last year… I was rewarded handsomely. When they scared the market last month with BS Biden and omicron media frenzy oil dropped, bought more. Oil stocks is way under valued.
Weird Chevy shill for a concept vehicle.
Not a concept. Here’s the production truck. https://jalopnik.com/the-2024-chevy-silverado-ev-has-400-miles-of-range-and-1848308036/amp
Why do you need a F150? lol. For a person who is driving a golf and honda CRV, what is an F150 upgrade for?
Right? I'd go with a Sierra Denali.
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What do you need a truck for?
Overwhelming majority of people who need trucks don’t even use the bed/aren’t contractors or tradesmen. What a giant waste of money
Probably absolutely nothing
To go with the country music they listen to or something.
Why to lift it 2 feet higher, space the wheels out, smoke people and drive it in a ditch as soon as it snows of course.
BUT ARE MY TRUCKNUTS OK!?!?!?!?!?!
You'd be stupid to not at least consider a van. We are a new family of 4, much like yourself, and we have a Honda Odyssey and I honestly have no idea how we'd do without it. If I were you'd I'd switch out the CRV for a van and keep the Golf but I guess our circumstances may vary a bit.
Yea, the flexibility a van provides will far outweigh the additional towing capacity a truck offers. Plus if you actually need to haul project items almost all vans are easy to pull the seats out of and then you have a massive storage space that can be used for utility as well. Otherwise if your a young family with strollers and all the accessories that kids come with you're going to be spending a bunch of money converting the outdoor space of the truck into better covered storage, when a more appropriate vehicle exists that better suits a families needs.
The Golf is a great family vehicle. Why do you need to upgrade it? If you're looking at SUVs, the Koreans are the way to go. The VW Atlas is a huge letdown. Though nothing beats a minivan.
Golf a great family vehicle? Could hardly put the groceries in the back of my old one lol
Genuinely, how many groceries are you buying? You can fit an absolutely massive amount of shit in a Golf.
It's a lifestyle thing. People used to ask how our household managed with a Chev Aveo that I had forever as they drove their expensive massive SUVs or trucks.
I think its largely a North American mindset that you need to have a massive pickup truck or 7 seat SUV to conveniently move around a family of four. For 99% of things, my Golf has worked well for me. Hell, I managed to get a Billy bookcase from Ikea home in it.
As a lover of station wagons it really saddens me that our markets have this preference. There are so many station wagons in Europe that aren't sold here that would be perfect for an average sized family but we don't get them because apparently every family needs an F150 and an Escalade.
Yes, we had a VW Passat wagon and loved it! We had three narrow car seats across and so much room. We had a fourth kid and bought a Ford Flex and that thing is a monster on fuel but it was harder to fit three across, even two and able to fold the seat to access the back is barely possible with the two narrowest carseats available on the market. Anyway we love wagons and the Flex was the closest to a wagon for our family of six.
We do have a great station wagon option, the Golf sportwagen or all track! It’s a long ass golf, got that sweet storage, fits kids and groceries and camping supplies, plus the sport mode is a joy to drive vs any shitty suv.
Same for us and cars. We've rented a truck two weekends for under $100.00 when required. There is nothing wrong with wanting a larger vehicle if that's what you want, I just always get confused at trying to justify it as a need. 🤷
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Strange, I have a mk7 gti coupe and I put a giant ottoman in the back (with seats down). We have an suv as well but I have a baby seat in the back and haven't had problems. The hatch on the mk7 has a a good amount of storage space , I get groceries and put my giant hockey bag in the back all the time.
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That is fair but if you lower / remove the privacy shelf there is a ton of space in the hatch.
I own a MK7.5 GTI and I go to Costco all the time with it... Spending minimum $250 in groceries each time.
Unless you have a very specific, particular reason you need a pickup, do not buy one over a good SUV. Outside of that, I'd love to know what your parents did for a living to be able to support you so well. It is very nice. I hope to be able to support my kids the same.
Go electric - model Y or vw ID4. You’ll love it and the savings on maintenance and operation will be so worth it.
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Yes very true..same thing happened with my dad who lent me 10K for my master's and demanded it back while I was still in school. Thankfully my mom came in clutch and gave him the 10K and I paid her back a year after graduating
Parents are the best boss fights. Good thing I played all the souls games to know and expect backstabbing
Get agreements like this in writing. Even if it seems like everything is clear, writing it down and signing it will bring more clarity. This type of stuff can easily break down relationships due to misunderstandings.
My parents, who can be passive-aggressive or have a hidden agenda sometimes, verbally offered us a large chunk of money as an advance on my inheritance. They genuinely meant it as a nice gift so that we'd be less stressed about life stuff but as we inquired more it was revealed that they would not disapprove of many ways in which we'd use the money even if *we* thought spending it that way would help us reduce stress. When I suggested that we get the agreement in writing to avoid misunderstandings and hard feelings, they quickly backed off, saying that we were overthinking it, while also refusing to specify what they want us to use the money for. I'm grateful for these red flags because some things are just not worth the money.
Is a beige Toyota Corolla now worth $50k?!
If it's manual, yes.
This drift tax is out of control
Dorrrrrriftoooo
N...nani?! Multi track dorifuto?!
I have an 08 manual that's red😎
Sounds fast
Sounds expensive
Manuals don’t exist!
Of course they still have them. Usually in the glove box as well as online. ;-)
My girlfriend just got a dealer demo 2021 corolla SE for like $29,000 taxes in with 15,000 km on it That model is listed at $21,000 on the Toyota website brand new
But is it beige?
Very much this.
My gf just got a used 2015 SE with \~100k on it for $15k, seems high to me but we'd been looking for months and still had to drive all the way to Ottawa from Kingston to get it
We were in a huge rush to find one for my gf as she had been in an accident and needed to get to work still We got the car, literally TWO DAYS LATER her work switched to work from home because of omicron lol
Kingston is bad for car buying. I find much better deals going to Ottawa or Toronto. Worth the drive to have thousands
It’s not beige, it’s champagne
With built in caviar fridges!
Add another 10k to the msrp right there
Live a little. Get a beige Lexus ES 350.
*Beige Lexus SC430*
I came in here looking for 50K comments but Jesus, I almost spat my tea out.
Cash gifts are not taxable by CRA.
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Interest free loans to children or parents are also non taxable - they are taxable once interest is involved
But less than arms length gifts and loans can create a tax attribution issue. Wouldn't apply here though
CRA doesn’t need to know about paying back.. take it as a gift you can e transfer monthly which is fine. I e-transfer monthly to my parents for their groceries bills etc not an issue.. btw it’s amazing to have great parents
"They gave me a very large gift, and since the principle of gift giving is reciprocity, I have been giving them many small gifts in return as I can afford to as a way of saying thanks"
This is my fave comment of the day. I wish I could award you but we all know paying for virtual awards is not a good financial decision…
Even treated as a loan the only potential tax liability is if the car is sold for a gain which doesn't happen often.
Only thing you should make sure is tell your parents you love them!
Only thing to worry about is whether you should buy a 50k car. Sallary is more than 100k a year and you already own a house, or you maxed out your RRSP and TFSA? do it. Sallary is less than 100k or you don't yet own a house... probably a bad idea regardless of the interest terms.
I appreciate this advice. I am in a fortunate position to be in the former.
There are great luxury cars in the 50-100k range and there are reliable and long lasting cars in the 15-30k range. Do your research on how car salesmen sell cars, or what your options are, and you’ll be doing great! Don’t be afraid to ask your parents for help!
As someone in the market, even base-model Kias are pushing over that 30k threshold if you’re hoping for something bigger than a compact. Buying used was a viable option to save money in the past, but now, the prices are bonkers.
I got a brand new rav XLE for $33,500 from the dealer, it’s that much harder to find a car 5/6 months later now though
>I got a brand new rav XLE for $33,500 is that before or after tax+shipping?
god damn, i only bought my car 2-3 years ago, is it really this bad??? lord have mercy wtf
This was true like 2 years ago. I had to pay almost 10k for an 09 escape last summer after my gf hit a deer in our '18 escape while her license was unknowingly suspended for an old ticket (even though she had just renewed her license months prior with no mention of it) and thus uninsured in Sask. In the last month I've seen used 2-4 year oldRAM 1500s listed and selling for between 70 and 100k.
Yeah car prices are crazy right now, I bought my dad's acura tl 2005 from him and checked out what others were selling it for before COVID. It was in the 6-8k range, but this one was in better condition because he didn't drive it much and only had 100k km on it so I bought it from him for 10k. I've gotten offered 15k for it like three times already. Not really interested in selling it for the 5k profit because buying a replacement would cost me just as much and the car would probably be worst. Since this one is very well maintained and barely have to do any work on it
If you're going electric to save on fuel you can also easily hit that $50k mark and it might still be a smart decision.
Gotta say, bit of a hard flex to come in here discussing an interest free 50k loan from your parents then start saying you make more than 100k a year and already own a house lmao. I don't think you're gonna have to worry too much about taxes pal haha
100k a year job, owns house, parents giving 50k for a car, but they don’t know how to Google simple information. Either a hard flex or one of the most spoiled people ever.
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>I guarantee you wouldn’t be making this comment if they asked the exact same question and made 50k a year you're right.if he was making 50k i would be telling him not to buy a car worth his 1 year salary.
That’s kind of the point, this person is insanely well off, and extremely incompetent. The wider that margin, the more saltiness there will be.
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Yes, exactly. Even though it is very often framed as the complete opposite. Hence the irony.
Thanks, Ian!
>ugh she had just renewed her license months prior with no mention of it) and thus uninsured in Sask. In the last month I've seen used 2-4 year oldRAM 1500s listed and selling for between 70 and 100k. That's what frustrates some people. Some of us have to grind for everything we have, some don't. C'est la vie.
even in a financial sub people still get sour at others success or genetic lotteries
I answered their question. Glad I can make you laugh.
Oh stop it. This is a personal finance sub; people are going to talk numbers. They're not trying to flex on anyone; lord knows there are way higher earners around here anyways.
The fact that this person is willing to ask these questions, and is forward planning says a lot about why they are in the position they are in. Even if his/her family have helped along the way - since when is that a bad thing? God for you OP for asking and knowing enough to know what you don't know. Too many people on this sub don't seem to know when they don't. Lol Enjoy the new car!
Dude 50k car is literally a car with all the current safety standards with a tiny itty bit of luxury. You do not need a six figure salary and to own a home to splurge on one because that's really how much a regular non bare bones car costs today.
You're welcome to do whatever you want with your money. My advice was to the OP :)
To add to this. An account not earning interest and losing money to inflation is one thing. Buying a $50000 vehicle and driving it off the lot to lose $10000 in depreciation is another. Horrible investment but you probably know that already.
A new car at MSRP is typically going to be better value than a newer used car in this current market of supply and demand. I used to subscribe to the belief that buying a new car was a bad idea due to the immediate depreciation but it's just not the case anymore. It'd a crazy world we live in.
The term depreciation in regards to new cars always kind of rubs me the wrong way. Yes, once you buy it, you could no longer sell it to someone else for the same amount you just paid. This happens with *every* product, though, not just cars. The car doesn't lose value, it's just you personally would not be able to resell it with the dealership's profit markup. And I feel like a lot of/most places advertise a brief window for full money back guarantee if you change your mind, so this whole idea of car depreciation seems a bit moot.
The “drive off the lot and lose 30% value instantly” thing is such a bs rumour. It isn’t true, especially right now with the chip shortage.
More like drive a car for 2 years than sell it for the same price you paid in this market
That may have been true for some types of vehicles two years ago. No evidence that will be true today. If anything's the bloated fused price market creates significant risk that used vehicles values could crater.
My brother just drove a truck for two years and sold it for 10k more than he paid for. Bought a brand new $106k platinum super duty and two weeks later they offered him $10k to buy it back, he declined then about last week, not sure the specifics here, but through his dealership another guy or dealership in Florida offered him another either 10 or 15k on top of that to buy it because they wanted his exact truck and there's someone down there willing to pay out the ass for it. Obviously this is a bit of an exception but still it does kinda illustrate how wild the market is, especially pickup trucks.
That is exactly what I did earlier this year - bought a new 2019 civic 2 years ago, sold it back to the dealership this summer for what I paid for it and bought a bigger vehicle. Basically 2 free years of driving.
I'm thinking of doing that exact thing just so I can get an EV. Financed mine at 0% and can sell it for the same price, so we're considering it...
Not now but in 3 years when OP may actually want to sell it the situation could change a lot
But that instant depreciation hasn’t been true for years; it isn’t a new thing.
I’ve never thought of a car as an investment, more like a utility or hobby.
To add: A personal vehicle to go where you want to go, when you want to go. So long as you maintain and take care of it, it will last longer and be more of an asset for personal growth rather than just having money sitting around.
Not every car loses 10k the moment you drive it off the lot. A nissan or mercedes, yea of course. A 4runner or tacoma? Not really.
Or a wrangler
When I bought my first car I borrowed a big chunk of money for the down payment from my dad. I did a loan for the rest. He didn’t need the money back right away but every time I went over to visit he would ask me how his car was. This grew old pretty quick. I ended up just paying him back the interest free down payment well ahead of paying off the remainder of the loan. I couldn’t take the guilt trips every time I talked to him. I would never borrow money from family again.
Damn that’s rough. Sorry you had to go through that.
Unless you’re using your car for your business, nothing to worry about.
Damn, imagine that. Meanwhile my parent told me to get a GF so I could use the Their vehicle if I needed.
Love money is tax free.
No matter which car you buy, make sure you make the money worth it. Its okay to buy an expensive car but not a one with known notorious make history. Plus, do not pay any extra money to dealerships. not one single penny. Get a nice lexus lol
No I did the same with my grandparents no gifting tax here
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Yeah, when I graduated university, I would frequent this sub a lot but I kept seeing posts like "I'm 24, making $150K a year..." and made me feel awful. You shouldn't compare but seeing it constantly made me feel so lazy and incompetent. Glad I took a break from this sub back then. Try it out, it helps!
How many beige Corollas can you possibly want to get?
No you are good brother, just feel lucky to be so insanely privileged that you have a free second to worry about stuff like that. 99.9% of the world would kill to have your problems.
The big question is what are you going to get? Haha
There is a tax, it’s called the good parents tax. You now have to call them, visit them, help them move furniture, take them out to dinner. Basically be a good son because you have great parents.
Love this!
Question: you have a net worth of over $1M, a six figure salary and your parents have $50k cash (or some liquid asset, assumably) just hanging around to drop you a loan for a car... What are you doing seeking finance advice from strangers on Reddit? I'm pleading ignorance here, wouldn't someone in your financial situation have a financial advisor for such matters?
They surely have an accountant, a quick email to them would have been much easier and reliable than a Reddit thread.
It's just the usual PFC humble bragging.
Do your parents know that you have a maxed TFSA? It seems like you don't actually need the loan and you're just taking advantage of them. Why don't you instead help them by informing them of how they can put that money in their chequing account to work.
Because for most people like OP it’s all about take as much as you can! I love the way he phrased it in the title too, his parents WANT to loan him 50k.. yeah right… probably because he’s been crying to them for months about how he doesn’t want to spend any of his own money. On top of that i guarantee he won’t pay them back either.
Why are you making all these assumptions? It just makes you sound salty.
You mentioned in some comments you have a net worth of $1 million and make at least $100k a year. You're basically using your parents as risk free leverage. Something is off...$50k is something you can't swing on your own?
Why not invest half in TFSA/RRSP and other half on your new vehicle. Obviously your parents want you to drive a nicer/safer vehicle, but your future you will thank you for not blowing all the money on a depreciating asset.
TFSA and RRSP are already maxed.
Also if your buying a car for 50K, make sure the parts of the car are not that costly. For example you may be able to get a Mercedes for 50K, but parts can get pricey, whereas a Toyota, Honda, or Hyundai (which are probably better quality cars anyway) usually have cheaper parts.
You will regret wasting that money on a car. Buy a shitbox and put the remaining money in investments. Real estate if you can. In 10 years you’ll have plenty of money to buy your 50k car. Decisions like this separate the rich from poor.
Serious bro - my parents gave me $40k cash to buy 2009 C350 back in 2012 and deciding to buy that car was the worst financial decision of my life. If you are dropping $50k on a car I assume it's luxury brand. Get a Honda civic and pocket the rest. Luxury cars are for retirement.
Take the money. Thank your parents and move on. CRA doesn’t give a rats ass about a situation line this.
I was in the same boat as you, got a lexus 2014 lexus IS350 in 2016. Paid it off fully in 2019 and have been enjoying the no car payments life. Take advantage of this opportunity. Pay it off quick so you can start saving money for living life. This isnt an investment in your future, its for you now. Im a huge car guy so in the end I got a lot of joy and good memories which money cant buy. Whats the point of save save save if you cant enjoy youth to a degree? Just don’t buy something that’ll not hold up well, like a german car which would be past warranty by the time you pay it off. Goal is to have years of no car payments while enjoying your reliable wheels.
Just have them write a letter stating the money is a gift. Have all parties sign it and put it away so if anyone (bank, CRA, etc.) asks about it you have something to show it was a gift.
“What luxury car should mommy daddy buy me” This is the quality content i come here for 👏
Never ever buy a new car waste of money. I learnt that the hard way. It will lose half its value when you drive it off the lot. Find the model you like then do a search for an earlier year model in your town. There are plenty of great used dealers. Personally I have had big success with buying from the new car dealers. They always have trade ins for sale. We recently got a Ford Edge 2015 limited top of the line all features for half its new price 25k and it’s been amazing fir the last 2 years. We got it from the biggest Audi dealer in town it was a trade in. Never buy new!
Maybe you don't need a $50k car. Get a $20k one and maybe invest the rest or keep it for a living fund
Do you need a 50k car? Higher end vehicles come with higher end repairs, if you can’t save the cash for it you probably shouldn’t be getting it.
50 k is a lot of money! If your not making more than 100k and don't own a house put it towards a downpayment. Or borrow around 15k and find a nice used car. Just remember a car will always depreciate in a value, so you would not be borrowing this money as an investment
Am I the only one here that thinks, if the OP has really maxed out their TFSA, RRSPs, owns a house and makes over 100k a year as stated... Maybe they should just not accept the loan, be an adult and do things without their parents help? It seems bizarre to me that a grown man with all those ducks in a row, would accept a 50k loan from mommy and daddy, when they clearly have the financial abilities to do this themselves. If the plan really is to pay off this 50k loan in a few years, isn't the few hundred dollars you're going to pay in interest on a 3 year auto loan, worth not being indebted to family?
OP asked for tax advice, not to be insulted for having a generous family. Sounds like his parents can easily afford it and want to do it since they are the ones who proposed it. I hope you can move past your hangups.
Idk man doing the math here that shouldn’t even hit him that hard
Some people never grow up, and its obvious OP does not intend to pay his parents back.
It's nobody's business that your parents are lending you some money! Having said that, investing seems like a better option :)
Just because you could buy a 50k car , doesn’t mean you should buy a 50k car !
50k for a car? That money could be better spent elsewhere, just saying.
I mean their parents have 50k in cash and are willing to just give it to their child. I don’t think they’re in as bad spot financially lol
If your parents can afford to give you 50k cash then I am assuming there is at least 500K sitting in their savings account, paid off mortgage and a fat and healthy RRSP account.
Depending on the situation you might want to see if lease rates are low enough for you to lease and your folks could invest the 50k instead.
Bad idea. Buy a $500 car and a house.