3 Tips to Buying Your Teen's First Car

Everyone remembers their first automobile. Loving the freedom of the open road, getting your driver's license, feeling in control, being behind the wheel by yourself for the first time. It is a thrilling feeling for the teenager in your life, but how much ought to you spend on an automobile for your inexperienced driver? Here are some reasons to think time before going out & purchasing your 16-year-old a brand spanking new automobile:

1. new cars depreciate quickly. Purchasing a used automobile could be a better option. According to Dave Ramsey, most vehicles lose about 60% of their value in the first years. Purchasing a used automobile is simpler on your budget & will help save for more important things (i.e. college) for the future. Also, the type of automobile you buy will have a direct impact on the cost of insurance. That chilled red Trans-Am may not net the best rates from the insurance company. Think about that blue Civic. May not be the hippest automobile around, but will save a bundle in insurance & serves the purpose of getting from point A to point B.

2. Teach responsibility & work ethic by having the teenager pay for or help pay for the automobile, the insurance, or the gas. Or a combination of all. Because the cost of insuring teenagers is so high, it is a giant motivator for your teenagers to understand the costs along with ways to help reduce the cost. Maintaining a high GPA is an example of a way to reduce their insurance costs. When your teen has personally invested in their own vehicle, they are going to be more likely to take better care of it. This also teaches teenagers about the importance of budgeting for high-ticket items like an automobile.

3. Teenagers are at a much higher rate for automobile crashes. In 2008, about, 500 teenagers in the United States aged 15-19 were killed & over 350,000 were treated in emergency departments for injuries suffered in motor-vehicle crashes. Young people ages 15-24 represent only 14% of the U.S. population, but they account for 30% ($19 billion) of the total costs of motor vehicle injuries among males & 28% ($7 billion) of the total costs of motor vehicle injuries among females (Centers for Disease Control & Prevention). Even minor accidents may cause insurance rates to skyrocket, so make positive your teen practices safe driving.

Whichever automobile you buy, make positive it is a safe. A properly inspected used automobile can still be safe, make positive that the airbags & seatbelts still work. Have a used automobile inspected by a reputable dealer or mechanic to make positive it is in proper working order.

 Times you have found "the" automobile, look for discounts on automobile insurance & teach your teen ways to save fuel costs. & above all, remind your teenagers to keep their eyes on the road & safe travels!