Car shopping for your teen? Prices are easing slightly

The used car market is still pretty bumpy, but if you’re looking for something safe and barely dinged up for your teenager this summer, there could be a buying opportunity.

Used car prices have been out of this world for the past year because of heavy demand and short supplies. Blame the shortage of computer chips, which has stalled the supply of new cars coming off assembly lines and prompted buyers to think used.

But there are signs that used car prices may have peaked — welcome news for potential buyers kicking the tires.

“Prices have started to plateau and even begun to come down,” said Brian Moody, executive editor at Autotrader, an online automotive research and sales company. Going forward, he added, “on the whole, used cars are going to be less expensive and still under the price of a new car.”

The Manheim Used Vehicle Value report, which tracks prices of used vehicles sold at auctions, fell 1% in April, marking the third straight month of declines since a record high in January.

There are even reports of car dealers stocking more higher-mileage used cars on their lots to appeal to people looking for more affordable options, Moody said.

Given that news, what should parents do if shopping for a vehicle for a teen?

Whether buying from a dealer or the neighbor down the street, the best strategy is to look for a car that is reliable, safe and relatively clean of dents and rust, Moody said.

In addition, he said, be willing to accept a higher-mileage vehicle, especially if the price tag is more modest.

Shoppers may also want to consider a certified, pre-owned vehicle — typically one that’s accident-free with low mileage, warranties and other extras.

If you’re in need of a vehicle for your teen and are feeling overwhelmed, here are some additional shopping tips:

„ Set some basic parameters before scouting the market, including a price range and the inclusion of necessary safety features, such as anti-lock brakes and front and side air bags.

„ Don’t be afraid to walk away from a deal that strains your budget.

„ Get your young driver involved in the research and shopping process as much as possible. “When their own skin is in the game, kids tend to care more” about making affordable decisions, Moody said.

„ Make clear who will be responsible for paying for gas and insurance, and covering any maintenance. Maybe start with your teen covering gas fill-ups, while working toward handing over the insurance payments.

„ Don’t lock in on SUVs and trucks. While they may be your kids’ dream car, they are generally more expensive and may not be the safest match for inexperienced drivers.

„ Still thinking new? Scan automotive websites such as Kelley Blue Book (www. kbb.com), Autotrader (www.autotrader. com) and others for recommendations. Autotrader, for example, released a new list of its 10 best new vehicles for recent college graduates. All have prices below $30,000, and offer strong reputations for reliability, safety and fuel economy.

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DREAMSTIME Set some basic parameters before scouting the market, including a price range and necessary safety features.