For most parents, buying their teen their first car is an important milestone. It’s an exciting transition for your child as well because they’re finally getting the freedom and independence they’ve wanted for so long. Buy your teen their first car can be a little daunting for parents, however. It’s a big step and brings about all sorts of questions and safety and expenses. There are difficult decisions to make along the way. Here’s how to help your teen buy their first car.
How much should you contribute?
This really depends on you. If you’ve decided to pay the full price for the car, then try to present as a reward for good behavior, such as an academic achievement or getting their first job. If your child has the means, encouraging them to save up for their car can teach them a valuable lesson.
Come to an agreement. Set them an amount to save that you will meet when they’ve reached this number. If you see that they are working hard to save money, you can chip in early and pay off the rest. If you’re looking for more ways to negotiate the price you can find advice online.
Explain the operating costs
Buying the car is just the first step. Explain to your child that cars cost money to run. They need to understand the costs of insurance and making claims, maintenance, parking, and fuel. If you need to help them with insurance claims, accidents, and consequences seek advice from attorney Javier Villarreal about this.
It’s a good idea to go over a little refresher lesson in maintenance and road safety as well. Explain the inevitable costs of when a car breaks down, or you have a minor accident. Give them an accurate lowdown of local parking and gas prices too.
How much should you spend?
When deciding which model to go for, you don’t want to spend too much on the car. Experts say you shouldn’t spend more than 10-12% of your income on a new car. If your teen has a part-time job they probably won’t be earning that much. Create a realistic budget including operating costs, and help them out with the overall price of the car.
Which is the best car for teens?
If you’re buying your teen’s first car it’s often better to go used. They’ll just be happy to have their own wheels, and you’ll save a lot of money. Check out this list of the best used cars for teens. Used cars these days are up to date with modern safety and economic standards. You will be getting a modern vehicle at a cheaper price.
The benefits of owning your first car
Owning your first car will teach your teen valuable economic principles. Although you’ll be giving them more freedom and independence, there’s a lot of responsibility that comes with it. Give them space to manage their own vehicle. Ensure they learn to budget for fuel and maintenance. They’ll learn more this way.