Getting a driver's license is a rite of passage for every new or soon to be sixteen-year-old. However, many of these kids do not realize that getting their license, does not guarantee them a car. The natural excitement that builds up surrounding becoming legally able to be behind the wheel can overshadow the fact that a brand-new car in the driveway with a huge red bow on it is probably not happening. It can be a wonderful life lesion and bonding experience as a parent though to help them through the process of buying their first car. Giving them the help and encouragement they need to do this on their own, while also having the safety net of your guidance and experience sets them up for success and develops a set of soft skills that will serve them in other areas of their life down the road.
Precautions and Resale
As a buyer, especially a first time one, you are extremely vulnerable and if you are not armed with knowledge you leave yourself open to have a seller take advantage of your naivety. Test drives, Kelly Blue Book values, and sale prices that fall in the comparable range with other like vehicles are all ways to protect yourself as a buyer. Resale consideration is also important. It seems counterproductive to think about selling a vehicle you have not yet purchased, but one day you are going to want to offload this vehicle so thinking about the market ahead of time is smart. Reading a how to guide for each step of selling your car and understanding that selling your car yourself might yield more value will help outline your projected ROI going into this purchase.
Budget and Criteria
A child of this age probably has a very elementary understanding about the value of a dollar, and how to distinguish between wants and needs. Mapping out the bare minimum criteria for what type of vehicle they will need is a good place to start and an even better way to manage expectations for when it comes time to talk budget. Once established, researching within set criteria and budget will narrow down the options significantly. Helping your child understand that aesthetics is not the most important thing is important because especially from the perspective of a parent, reliability is much more important. Compare criteria other than values across each of these services and teach your child that a car is a big investment and warn them of the dangers of buying a money pit vehicle.
Deciding on New or Used
Even if a new car is out of reach for your child, this is a good opportunity to show them the differences between purchasing new vs. purchasing used. Giving them this insight now will give them a frame of reference for when the next purchase opportunity arises, and they are more independent from you. If you are not helping your child financially, or by putting the vehicle in your own name, a lease is not a viable option so this is also the time to let your child know what, if any help you plan to give. Comparing associated costs such as insurance and estimated gas expenses should also be highlighted to your child. They need to understand that is costs more to drive a car than simply the purchase price.
