Your teenager just got a driver’s license. Congratulations! Now it’s time to go car shopping. Choosing a vehicle for a new driver can leave you wondering what options are best. Should you buy a new, dependable car that is less likely to break down? Should you choose an older model that may be less expensive? What kind of vehicle is best? Here are answers to these questions and more.
Decide Who Pays for Car Expenses
Before you head to the car lot, discuss financial responsibility. Your child needs to understand your expectations about who covers the costs.
The costs you’ll need to consider include:
- The car itself
- License and registration
- Insurance
- Maintenance and repairs
- Gas
Dividing the expenses may depend on whether your child has a job. Most teenagers don’t have the funds to purchase a car and insurance, so those costs may fall on you. However you decide to divide the expenses, make sure your teenager understands the responsibility.
Teens might not be aware of the maintenance costs that go into owning a vehicle. Aside from regular oil and fluid changes, other parts need occasional replacing. Tires, wipers, belts, hoses and filters are just a few. Also, the chances are that your teenager will experience an unexpected breakdown at some point, so setting aside repair money can help.
Decide on a Car
Buying a vehicle for a teenaged driver is challenging. New drivers are statistically more likely to get in wrecks than experienced drivers. On one hand, that news can make you want to buy a newer car with the latest safety features. On the other hand, it can also make you want to buy an older car in case it gets wrecked.
Safety is an essential consideration. It’s a good idea to find the newest car you can afford so that your teenager is as protected as possible in a crash. If you haven’t purchased a car in a few years, you can use an auto loan calculator to estimate car payments for various makes and models.
While your child may dream of a sporty vehicle, a high-performance car isn’t the best choice for new drivers. Opt for something practical that’s easy to handle. You may want to consider a model with good gas mileage — especially if you’re footing the fuel bill.
Calculate Auto Insurance
Car insurance for a new driver is pricey. Because teenagers are much more likely to get into accidents than other age groups, their chances of filing a claim are higher. Therefore, the insurance companies charge higher premiums.
While you want to get a relatively new vehicle for safety, insuring a brand-new car for a teenager may be way too expensive. You can get a lower rate by purchasing something that’s a few years old. A not-so-new car can also save you money on license plates. The Insurance Information Institute recommends purchasing a bigger vehicle that’s easy to steer and has electronic stability control. This vehicle type keeps your teen safer and saves you some money on insurance.
Your teenager’s insurance costs will vary according to other factors. The driving record, parking location and residence area can affect premiums. Some insurance companies give discounts for:
- Full-time students with good grades
- Students away at college
- Low mileage
You may also save money if you install a telematics device on your teen’s vehicle. This instrument measures driving habits, such as rapid acceleration, hard cornering, hard braking, driving location, airbag deployment and time of day. If your teen has good habits and drives mostly during the day, you may get a discount.
Keep Communicating With Your Teen
Once your child starts driving, talk about your expectations. Is going to school and work all that’s permitted? What time is curfew? Is driving with friends allowed? (Your state may have laws regarding driving non-family members.) As your teen gets more experience behind the wheel, you can reevaluate your rules as you see fit.
Getting a driver’s license is an exciting time for your teen and family. Do some financial planning and keep the communication lines open so that you can all enjoy this step toward independence.