I have a 16 year old daughter that is looking for a car right now. It is a very scary and stressful experience, for both of us. She has the joy of being in debt for the first time and I have the joy of worrying about her coming home in one piece. During the experience I have gleaned some useful tips to help with the process and maybe make it less stressful for you. If that is possible.
- Research- First thing to do is use the trusty internet to research what type of car your teen wants. Please be advised, teens are stupid. When I asked my daughter what was the most important thing to her was, she said a place for her iPhone. No joke. So, you may have to take the reigns on this one to insure they get a car that is going to get them to point a and b safely. Even if it means no iPhone port.
- Establish a Budget- First things first, your teen needs a job even if you are buying the car for them. It still needs gas and insurance. They should take on some of the responsibility because not only will it help them grow but help them understand a budget. It is a good lesson that will follow them all their life. Maybe even offer to pay half and they pay the other half. That will also teach them about saving.
- Financing- If you are not paying cash that means you will have a loan payment. Make sure your teen is on it and stress to them the responsibility of paying some, if not all of it. Also, don’t coddle them. If they are late, let them be late. It is an important lesson.Buying a car for your teen is a great moment to discuss the important factors that are up for consideration when taking out a loan for a big purchase like a car or house.
Read More Here