Got a new driver in the family this year? We’re here to help you navigate the ins-and-outs of car buying for new teen drivers. We’re bringing back our post from last year’s Back to School New Driver post with some helpful updates and pointers!
School is starting and many young drivers are taking their first steps to independence by driving to their classes and after school jobs, social events, sports games, etc. If you’ve got multiple teens in your household, the car swap shuffle can get a bit tiring and hectic! As a result, you may be considering buying an additional vehicle for the family, or for your young driver to have to themselves.
We’re here to help break it down into several easy-to-digest steps for wading through the waters of purchasing a first car for your teens. Check it out and let us know if there are any other helpful hints and tricks your family has used, and we may include it in an updated column in the future!
A Helpful First Time Car Buying Guide for Teens & Their Families
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First, decide on a budget.
Many families will share cars with new drivers, or will pass down an older model as parents upgrade their ride. Regardless of your choice, you’ll need to find the price point that works for you and your budgetary needs!-
Shop around and test-drive multiple models, and see what type of vehicle that suits your needs is available at different price points.
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If you need a loan, younger drivers will require a co-signer due to lack of credit history and less stable employment history. Be sure to talk this out as a family, and decide the best course of action ahead of loan applications. Many loans also come with title fees, a down payment requirement, and other costs, so be sure to do your research on that.
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Paying for a car up front can save you a lot of money in the long run. Set a budget that you can comfortably afford to pay via cash or check, and avoid costly interest fees on loans. Remember to include title fees/transfers, registration costs, and initial insurance payments in that budget.
Figure out your daily mileage (home to school and back, school to work and back, average weekend visits with friends) and determine your average gas costs. Choose a car that fits your monthly budget with good gas mileage or higher electric charge mileage. -
Also be sure to factor in insurance coverage costs and related payment plan options for the make/model of cars you’re looking at, and best coverage that ensures your safety and fits within your budget. This may be a monthly, quarterly, or yearly expense.
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Decide whether you’re going for a new or used car. Most new drivers opt for budget-friendly used cars, but there are pros and cons to each. Weigh both as a family and decide which you prefer.
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Bear in Mind: Pandemic related supply chain issues are affecting all major industries in regards to manufacturing and delivery. Both New and Used vehicle sales have been impacted, so plan ahead for potential wait times on specific models and features, and consider a flexible shopping plan with multiple selections in case your first choice is out of stock or has a delivery wait-time outside of your required window.
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Newer cars are the most advanced options, and have lower associated repair costs, but they do require financing or leasing and more expensive insurance. Older used cars can be a more economical option up front, you’ll have a wider variety of makes/models to choose from, but there is always a higher risk for repairs and maintenance.
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Used cars from 2013 and higher will fit most any budget and will have ideal safety features such as Anti-Lock Brakes, Traction control, and stability control. Newer cars within the last 3-5 years may also be equipped with Forward-Collision warning, Blind-spot monitoring, Heads-Up Displays, voice activated infotainment systems, and other driver-assist technologies.
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Do thorough research on your options. After you’ve reached a budget plan, it’s time to consider a few things, such as what will be your daily usage, what features do you need, are you the sole driver or sharing, etc.
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Think about what kind of car you’ll need: will it be comfortable for long distances, a vehicle with room for multiple passengers, lots of room for athletic equipment, etc. Make sure all of your car searches factor in the following: safety features, reliability and longevity, fuel economy, tech and digital features, vehicle resale value.
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Choose a vehicle that has a Good Crash-Test Rating via Kelley Blue Book verified sources (IIHS and NHTSA); these test for roof strength, head restraints and seats, front and side impact damage, roller damage, etc.
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Read all financial paperwork and sales agreements very carefully. If you’re a younger driver, be sure to bring along a parent or guardian who can help you navigate the agreements and negotiate your best deals.
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Decide what features are must-haves and what you can do without. Each make and model year of car has different features and amenities. It’s up to you and your lifestyle to find the right match of indispensable electronic and convenience features.
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Already have a car for your teen driver, but want to makes sure they’re well equipped for emergencies and stay on top of upkeep? Here’s a helpful list of items that should be included in your new driver’s car maintenance and safety kit:
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A Membership to AAA or other Roadside Emergency Services Program
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Physical Map of your Local Area (State, County, Town)