Hi all, thanks for reading, hopefully you guys can help me get a clear idea of what to do in this situation.
So I'm based in Aus, if that changes anything.
Basically my Dad's car is about to go kaput, he's looking into getting a replacement for the next phase of his life (he's mid 50's if that helps).
Throughout his life, he's made some bad business decisions and as a result has terrible credit and has in fact gone bankrupt in the past, he's still on his way out but has around $30k outstanding which he is not wanting to pay out (communication issues between him and my mother - still have a business assett unreturned - not sure if this is an option to help clear the debt). Basically he is unable to get a loan for a new vehicle.
He has asked me if I'd be interested in taking out a loan and buying a vehicle in my name, which he would use. The car would likely be $60k at least (not sure he wants to budge on this, as it will likely be his retirement/last vehicle, and personally I think this is an okay amount to spend).
My credit is okay, and if I'm able to secure this amount, what kind of risk am I taking on? Is this legal?
I do trust him to be able to pay off the amount within 2 - 3 years, and have told him I will need a 10% deposit on the loan that I will hold before and while the loan is taken out, along with number proof that he can and will be able to pay (full budget plan for the loan term).
Is this a bad idea? Should I tell him he'll need to save for 3 years and buy his car then? And just buy a beater in the meantime?
He does deserve a nice car, and I want to be able to help him, i just really want to know what kind of risk I'd be taking on this?
Also might be worth noting - I've already done a small $5k loan for a health issue for him within the last 2 years, and he was able to pay as agreed then, but I didn't really consider the risk of that at the time, so hoping to be a bit more thought out this time.
Submitted April 06, 2019 at 09:14AM by yellowblueman http://bit.ly/2FRWBOK
