5 tips for buying a teen’s first vehicle

Adolescence is an exciting time in a young person’s life, but one specific development may eclipse all others in the level of excitement it generates: getting a driver’s license. The ability to legally drive affords teenagers, long dependent on family or friends to get around, much more freedom.

While most teenagers hone their driving skills by borrowing the family car, over time teens may need a car of their own. Buying a car is an important financial decision. Whether a teen is purchasing a new or preowned vehicle, there are some tips to consider to secure a vehicle that is safe, affordable and reliable.

Is the time right? Everyone in the household may be anxious to add an extra car to the mix because it may alleviate trying to juggle use of one of the other family cars. However, do not rush into the transaction. In recent years, a lack of inventory related to the pandemic drove up the prices of both new and pre-owned vehicles. Families may need to wait until inventory increases and prices drop.

Establish expectations. Parents and teens should have frank conversations about responsibilities regarding buying cars. Talk about who will be paying for the vehicle as well as insurance, maintenance and all of the other expenses that go into vehicle ownership.

Financing may not be an option. Teenagers typically have no credit history, so it’s unlikely they will secure automotive loans without a co-signer. Furthermore, teens under the age of 18 may find they are not legally able to sign contracts or have a vehicle title in their name. In such instances, an adult will have to hold the title and ownership until the teen turns 18.

Prioritize safety. According to Honda, motor vehicles are the leading cause of teenage death, so it is vital to find a reliable and safe car or truck. Vehicle size, crash test performance and safety features are the most important factors to consider when looking at cars for teens. A car with a high safety rating also may translate to discounted auto insurance, which can be a big help considering teens typically pay more out of pocket for insurance.

Opt for a used vehicle. While a shiny new car parked in the driveway is appealing, preowned vehicles are more affordable. The insurance premiums on new cars are higher, and teens don’t have as much driving experience, so dings and dents may be par for the course. It can be more costly to repair a new vehicle than an older one.

Families must consider a host of factors when looking for a teenager’s first car.