5 Car Buying Tips for Teens

It's the time all parents dread - your teen gets the license and is now begging for a car. Before you say "No", consider some of these tips to buying. And, remember, after they buy it, they'll need a good auto mechanic!

 

1.                  Start on the used lot! 

It’s often easier to finance a used car, and you’ll likely get much more car for the same money as used.  Some manufactures are offering warranties that last as long as 10 years and 100,000 miles and you can often find a used car that is still under warranty

2.                  Safety first!

SafeCar.gov has a handy tool that will show you the crash test ratings for cars going all the way back to 1990.  Check the list before you buy.  Also, consider a device that keeps an eye on your teen’s driving habits.  Phone apps exist such as the Android based “Speedbump,” and insurance companies like Allstate, Progressive, and State Farm offer lower rates when their monitoring devices are installed.

3.                  Credit issues

It can be tough getting your first car when you haven’t established credit, however many dealerships have in-house financing that can help establish credit, and work with people in unique situations.  If this still doesn’t work, consider a cosigner.

4.                  Share the cost

Sometimes having a little “skin in the game” helps young buyers appreciate the value of a dollar.  While getting in over their heads is not advisable, perhaps come up with an agreement for them to pay the fuel or insurance costs.  Also, some insurance companies will offer a discount if kids keep their grades at a certain level.

5.                  Be realistic!

Now is the best time to learn that you don’t need the flashiest car on the lot.  Pick one that will keep them safe, hold up on the road, and get good gas mileage.  You’ll help your teen build great financial habits now that will stay with them for many years to come.