Tips on Buying Your Teenager a Car
Most teens look forward to getting their driver’s license and buying their first car. Having their own vehicle may be exciting, but it can also be a big responsibility. Teens need to be ready for huge expenses, including monthly payments, insurance, gas, and maintenance.
Below are some strategies for buying the perfect car for your teen.
Buy What You Can Afford
Before you pick out a car, it’s essential to establish a reasonable budget. Deciding how much you can put as a down payment and make monthly installments will determine your budget.
One thing to consider is whether the car is something to drive locally for a few years or see your teen through high school, college, or beyond. That will determine how new and reliable the vehicle needs to be.
Because a new car loses almost half of its value within the first five years, buying used is the best way to save money. Get one that is a few years old but still has current safety features and many more useful years.
If you are not paying cash outright, financing is an option, but it may be challenging for your teen. Lenders usually look for a good credit score, steady job, and sizable financial assets. This means you will have to co-sign for your teen in most cases.
Many loan companies have special programs for college students and graduates that offer rebates and ease credit requirements.
Do Your Research
Once you have a budget, you can start on the fun part. First, create a list of practical vehicles that minimize costs and suit your teen’s needs.
The Insurance Institute for Highway Safety provides a list of new and used vehicles that balance crash protection, accident avoidance, reliability, and performance. These vehicle recommendations are ideal for teens, but they can also serve anyone looking for a vehicle that excels in these areas.
Resist the temptation to get your teen a luxury, sporty, or oversized vehicle. Not only does auto insurance cost more for young drivers with sporty cars, but vehicles with big engines are costly to maintain and fuel.
If you plan to refinance, most banks require full-coverage insurance before leaving the car lot. You should get an insurance quote in advance to get a complete picture of the total costs.
To reduce the risk of buying a lemon, identify cars with a good reliability record. You can check CR.org/reliability for insights that can steer you to vehicles that can hold up well over time.
Test-Drive and Inspect the Car
Sit down with your teen and go online to read reviews of vehicles you may be interested in test driving. Pay attention to areas you are most concerned about. For example, ride quality or seat comfort complaints can be checked out during your test drive.
Each used car has a unique history. While some may have been pampered, others may have been abused. The best-used cars are owned by a family member or friend who can explain details of the car’s history.
Carefully inspect the car inside and out, from top to bottom. Always check it out during the day to see any flaws that might indicate repairs or other issues. Basically, you are looking to make sure the vehicle is in the condition the seller claimed it is in.
Must-Have Safety Features
These features are standard on all new vehicles and are available on used cars. When considering a 2012 or earlier model, check the car’s features. These safety features are must-haves for inexperienced drivers:
- Anti-lock brake system
- Backup camera
- Electronic stability control
- Head-protecting side airbags
If your budget permits, consider these advanced features. They are available on new and late-model used cars and can help reduce injuries and fatalities.
- Automatic emergency braking
- Blindspot warning
- Forward collision warning
Watch YouTube Video: First Car for Your Teen | Consumer Reports. The following video below explains what to look for when shopping for your teen’s first vehicle.
Sacramento Car Accident Lawyer
I’m Ed Smith, a car accident lawyer in Sacramento. If you or a family member has sustained serious injuries in a traffic collision, our experienced legal team can help you recover full compensation for your medical bills, lost wages, and pain and suffering. Call us today at (916) 921-6400 or (800) 404-5400 to receive free and friendly advice.
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