Return to Finance Blog 
Purchasing Cars for Teenagers
It is quite a scary moment when parents come to the realization that their child has reached the age to drive. For many, the thought of their son or daughter suddenly being on the highway alone traveling back and forth to school, navigating through busy intersections and being faced with life and death driving decisions can be very emotional. So, it is of the utmost importance that you send them out in the safest car possible for your budget.
Your First Decision
The very first decision you need to consider before the big purchase for your teenager is deciding your goal for the vehicle. Will it simply be a vehicle they will drive for a few months to determine the driver’s level of responsibility or will it be the car they plan to keep for several years and possibly take off to college?
If the vehicle is only going to be used for a fairly short amount of time, then you will want a low initial cost. Carrying liability insurance only will save several hundred dollars during the first year. Large, older body styles often present a good buying opportunity. The adolescent will not be as excited, but it will provide a better value for the small amount invested. If it is explained to the teenager that this vehicle is a test of their responsibility for the care, condition and cleanliness of the vehicle then they will be more likely to be responsible for their actions behind the wheel knowing a newer model is on the horizon.
Proven Responsibility
Once they have demonstrated their ability to drive and take care of the car responsibly then you can consider moving them up to a newer model. This can even present an opportunity for them to be involved in the next purchasing process. One way they can learn financial responsibility is to be totally or partially responsible for the monthly insurance payment.
Should you have a child that you feel you can trust with a newer model initially, then you might consider purchasing them one that they can have for several years after graduation. Fuel costs are always a consideration, as well as insurance costs. For example, a 4 door vehicle will cost less to insure than a 2 door model. Four wheel drive, off-road, sports cars and high theft vehicles all come with added insurance expenses. You will need to contact your insurance company for a quote before purchasing a vehicle.
Proper Maintenance Will Result In...
With proper maintenance and care any of the major car company vehicles should last in excess of 120,000 miles. I would suggest refraining for purchasing a vehicle from a manufacturer that has not been producing vehicles for at least 5 years. I also would not purchase a vehicle from a company that is going out of business (i.e. Daewood) as parts become hard to find.
A SAFE Vehicle!
Safety should always be your first concern. Driver and passenger air bags are a must, as well as anti-lock brakes. Anti-lock brakes can help overcome some of the driver’s inexperience on wet roads and sudden stops. With the advent of cell phones and texting, I would not recommend a standard transmission that requires both hands for driving. Four cylinder engines provide good gas mileage and far less power than an eight cylinder engine. The less power also means less temptation to use that power in a dangerous way.
Once you find a vehicle that you are considering purchasing, take it to a trusted mechanic for an inspection. This will be the best $150 you will ever spend on a used vehicle. If the seller is not willing to let you take the vehicle to a mechanic then you need not make the purchase.
Communication
With good communication between you and your child, the purchasing of their first vehicle can be a fun and valuable learning experience. Your job should be to walk them through the entire process and help them separate their needs from wants in a vehicle. Good luck and happy motoring!
Gene Cole
Gene has been General Sales Manager at Jim McNatt for the past 4 years. He has 28 years in the automobile industry and ran the largest Used Car operation in Denton County for 15 years. He is a husband and father of 3 and served in the U.S. Navy for 5 and a half years. Along with his wife of 16 years, Jennifer Cole, I have owned and operated Sanger Conoco Truckstop, Cole's Automall and Babies-n-Bells. My goal in life is to live a Christ centered life.
