For many teenagers, a first car is a rite of passage. Driving gives your kid more freedom, independence, and, of course, more responsibility. However, helping your teenager attain their first car may feel bittersweet or overwhelming as a parent. 

Of course, your child’s safety on the road is paramount, but you also have to consider financial factors, like the overall cost and whether you’ll take out a personal loan to buy a car, lease a newer model, or buy a used car outright. Fortunately, the following steps could help you and your child work together and find the best first car for them. 

1. Discuss Costs and Ground Rules

Before you and your teenager begin shopping around for a car, it’s important to have a conversation about expectations, rules, and financial responsibilities. Determine whether your kid will contribute to the cost and establish a budget that works for both of you. 

This discussion also presents a good opportunity to set some ground rules about behaviors on the road, including texting, speeding, driving friends around, and returning home by a particular hour when they’re out. Responsible driving behaviors protect their safety, the safety of others on the road, and keep your insurance costs from skyrocketing.

2. Research

After setting expectations, you can begin looking for the best fit. These days, cars come with many optional features. Not only can you pick between gas, electric, or hybrid models, but also choose entertainment, GPS, safety features, and more. To find some options that may work well, try to find the features that mean the most to them while prioritizing their safety. 

Consider how your teenager plans on using the car—will they mostly travel locally to school and work or take longer trips? Do they have to haul sports equipment? If your teen will quickly rack up miles, you may want to focus on fuel efficiency, for instance. 

3. Compare New and Used Cars 

New and used cars each have their own unique benefits and drawbacks as options for your child. A new vehicle could come with the latest safety features and save you some money on repairs. However, new cars tend to come at a higher cost, and insuring a brand-new car for a teenager could get pricey. 

On the other hand, a used car could be a more affordable and practical choice, especially if it has updated safety features like a backup camera and blind spot monitoring. If you do decide to buy a used car, make sure to have it inspected by a trustworthy mechanic and ask for the vehicle’s history report. 

4. Decide How to Pay 

Once you agree on the right car, make sure you have a plan to pay for it. That could mean buying it outright, leasing, or taking out a loan. Whether your teenager covers part of the expense or not, including them in financing conversations could teach them about managing money. 

If you’re taking out a loan, make sure you understand the terms and fees involved. Moreover, educate your teenager about credit scores and interest rates so they can take control of their financial future.

The Bottom Line

Your teenager’s first car is a financially and emotionally meaningful purchase. With proper research and planning, you and your teenager can make an informed decision together on a vehicle that’ll keep them safe and happy. Before long, they could hit the road safely in a car you both feel great about.

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of anationofmoms.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.