Should I cosign for daughter's new-car loan?

[linter]

my daughter just got her first job as a nurse practitioner, making 100K a year, and wants to treat herself to a new VW Golf GTI.  Best rate by far is .99% for 36 mo at Penfed.  Unfortunately, she got turned down.  Maybe because she's lived in her new place for only two months or she has 8k outstanding in student loans.  In any event, I have no doubt she will be able to pay the monthly loan amount, but now the question is: should I cosign for her to make it happen?
   part of me thinks, she's 31, she should do this on her own.
   another part of me thinks, she's my only daughter!  and i'm so proud of her for sticking to her guns and becoming a NP!
   what do y'all think?

[PonoBill]

She should handle it herself, but the credit issue is kind of bullshit. I'd certainly consider it, but I imagine she has wheels now and this is a luxury. She can and should straighten her credit out and get her life rolling before she treats herself to a new car that she can only just now afford. Sounds like she doesn't have much in the bank (I'd bet next to nothing) and that makes more sense than new wheels. A lot of kids today consider work an unpleasant option. As the father of a "failure to launch" daughter who is only now starting a career (ten years later than your daughter) I'd say tread carefully. Rewards are earned, and if they're earned, they happen. And it's not because Dad steps up.

[Seafarer]

I would suggest that she shop around for a better loan rate. Try credit unions. If she cant get a decent rate she may have to settle for something a little more practical and affordable than a GTI.
I have provided cars for both of my daughters in high school and college- "beaters" but dependable.  I think that once they are working on their own I would not co-sign for anything.

[standuped]

I don't know what kind of father you are but when MY daughter turned 16 she opened a box and found this...

[supsurf-tw]

I'd steer her in the direction of being debt free before taking on more debt. A 100k job should be able to get the old stuff paid off first fairly quickly. Kids get in the habit of accumulating debt and then they have a mess on their hands. Sit her down and explain these things as a rational father. Instant gratification has become a problem with the current generation, unfortunately.

[linter]

  great advice, all, and stuff i knew in my heart of hearts. 

[supsurf-tw]

The problem we have is it's so hard to say no to our kids because we love 'em so damn much and want them to be happy. As parents our job is to do what we know will be a benefit in the big picture. A conversation to this is always a good idea so as not to just come off as a mean dad that said "No".

[supthecreek]

Daddies and daughters. A special relationship that makes decisions like this one particularly emotional. We want everything for our little girls.

Funny to see this right now.....considering what I just stepped out of..... my 21 year old daughters brand new 2015  Toyota Corolla... amazingly beautiful, economical car, with all the bells and whistles. Well researched... well chosen.
She bought it, as she has always bought everything.... 100% by herself. Always worked hard, has money in the bank and a sizable downpayment in cash.... plus she gave her 1st car to my older daughter (she paid cash for that car when she was 17)

She reaped the rewards of hard work since she was 12, good savings in the bank and carefully planned use of a credit card to build credit.

I told both my daughters that I would not sign for them, and I took them off my phone plan after  graduation.... as pono said.... appreciation and good spending habits are born from a little suffering, and hard work.

All that said.... I'm sure there are LOTS of car companies that would jump at the chance to finance another new car off the lot.
and Sheesh... at $100,000 a year,  she could pay cash for a really nice used car, every 3 to 4 weeks

People say your home is the biggest purchase you will ever make. Hogwash.... it's a new car every 3 years. Cars depreciate at an insane rate.... houses appreciate over time and can save you money on taxes.

Add up the amount of money you have lost on cars during your life, and compare that, to the capital gain on your home.
A great life lesson.... the earlier learned... the better.

I just saw an add for a top of the line 2005 Mercedes.... with only 25,000 miles on it.... elderly owned and pristine.... for $13,000.
Holy crap I still freak about that... thats years of luxury and reliability on a beer budget!

Good luck my friend.... you'll do the right thing!

[SUPcheat]

I only had one car loan in my life.  Just out of residency, close to homeless and fund-less, but headed to L.A. for my first job in an Plymouth Arrow with failing brakes. Got my first pay  stub and paycheck just before my money ran out, went to a dealer and got a Datsun 280z on credit with the paystub. I HAD to have a good car in L.A. to run around all the hospitals and do my job.

 The car dealer ran a check on me and couldn't believe I didn't exist because I had been in school so long.

I paid the loan off in five months and have  since paid cash for every car.  No cashee, no car-ee.

[Tom]

I just saw an add for a top of the line 2005 Mercedes.... with only 25,000 miles on it.... elderly owned and pristine.... for $13,000.
Holy crap I still freak about that... thats years of luxury and reliability on a beer budget!

Mercedes  resale  has  gone  backwards . They  use  to  have  great  resale , but  now a 2 ,  3 year  old Benz  is cheaper  than  a Toyota .

[SUPcheat]

I just saw an add for a top of the line 2005 Mercedes.... with only 25,000 miles on it.... elderly owned and pristine.... for $13,000.
Holy crap I still freak about that... thats years of luxury and reliability on a beer budget!

Mercedes  resale  has  gone  backwards . They  use  to  have  great  resale , but  now a 2 ,  3 year  old Benz  is cheaper  than  a Toyota .

That's for sure.  I am amazed at the BMW and Mercedes sporty models, even some Porsches, beautiful cars still, with low prices on the used car lots.  I wonder if it isn't because they are just so expensive to keep up when they are out of warranty and the new car status image is used up.

[Darryn]

No, never go into debt for a car.

[linter]

  i've never owned a car that i didn't pay for outright.  and i've never carried a balance on my credit cards.  and i paid off my mortgage the first second i could.  and my daughter is pretty frugal in most ways.  but this car does seem to have gotten its hooks into her.  which i can understand.  heck, at one point, i just had to have an old porsche.  which i sold eight months after i got it.  but then again it didn't cost nearly as much as a GTI.  and i knew i'd never lose money on it.
   in any event, i explained the situation to her yesterday.  she took it pretty well.  and then said she'd go find a loan she could get, even if the rate was worse, thank you very much, dad.
   darn kids.

[Darryn]

I have three myself, 23 year old daughter is the most work by far but still very amusing,  we have a standing joke around here, goes along the lines off " pack your bags, we are going on a guilt trip ".
Good for a laugh anyway,
Cheers,
DK

[eastbound]

love that line, darryn.

i spoil the crap out of my girls, so ignore any tough love advice from me. and, come to think of it, didnt get much recognition yretserday, even. but that's anohter story.

bottom line: debt is bad. esspecially that which is used to buy depreciating, negative carry assets.

i have never had a car loan. i bought what i could afford cash used when younger. i have never had a credit card balance. only debt has been a small mortgage. if anything i shd have levered more with my real estate, but minimal debt is something i am stybborn about.

that's the lesson for your daughter, linter. In a year or two she can buy the gti cash.

I just bought a new golf (gas) for my household. Great car, plenty peppy and <20k. I would have bought a gti, but no point in that with an automatic, and household cars (all I have at this point) must be automatic.

"credit is another form of slavery" malcom x