It’s an important milestone when a teen is ready to buy his or her first car. While it can be an exciting experience, it can also be nerve-racking for the teen’s parents since driving and owning a vehicle is a huge responsibility. Plus, there’s the matter of finding a car that’s safe and reliable. Here are several tips to follow when it comes time to purchase your teen’s first vehicle.
Get Your Teen Involved
Let the teen be involved in the research and decision-making process. This can help teach him or her about responsibility and the financial aspects of owning a vehicle. Moreover, it can help set up your daughter or son for positive buying experiences in the future.
Set a Budget
Purchasing an automobile is a serious investment. This is why it’s crucial to discuss the budget with the teen so she or he can understand how much to spend. The biggest factor when it comes to price is buying new or used. Be sure to keep in mind all costs, including the price of the vehicle, insurance, maintenance and upkeep.
Share the Cost
Help your teen learn the financial responsibilities of owning the vehicle by letting him or her contribute, even if it’s in a small way. For example, you could make a deal with your teen that she or he must pay for gas or cover the car insurance.
Explore a variety of outlets (including dealerships, auto auctions and private sellers) to find the right car for your teen. Aim for a high-quality, reliable vehicle that emphasizes practicality and safety. You can even purchase a car with features suitable for a teenager, such as backup cameras. Additionally, test drive the car — especially on the highway — to ensure it runs properly.
For more tips on purchasing a teen’s first car, see the accompanying resource.
Infographic created by Capital Auto Auction