Everyone looks forward to their 16th birthday so they can take their license test and hit the open road. But with great freedom comes great responsibility – many of which kids don’t often consider when buying a car.
According to recent surveys, 41 percent of parents said they bought their child’s first car, with just 17 percent saying their child purchased their first car for themselves. While the number of kids footing the bill for the car may be down, there are still important lessons for kids buying their first car:
- Establish a budget. Knowing how much you can afford monthly will determine what cars you can choose from. And don’t forget gas, insurance, maintenance, and taxes! Because cars depreciate quickly, the best way to save money on a first car is to buy used.
- Create a list of vehicles that fit within your budget. Typically, small sedans and hatchbacks are the best bang for your buck with lower costs for maintenance, fuel, and insurance.
- Test drive. Now comes the fun part! Particularly with used cars, it’s important to inspect and test drive. All cars have been treated differently, and it’s important to ensure the car is in the condition the seller is claiming. It’s useful to bring an experienced adult along to help you with this process. No matter what type of car you buy, it’s important to look for several features including antilock brakes, electronic stability control, and head-protecting side airbags.
- Again, it’s a good idea to bring an adult to this stage. It’s important to get a good deal on your first car, but the seller still has to make a profit. Negotiating can be intimidating, but knowing how high you are willing to go and if you are willing to walk away makes it much easier.
If you’re not old enough yet to purchase your first car, it’s never too early to start thinking about it! Saving money years before you turn 16 will make the car buying process much easier and will give you more options when looking to buy.
