Your Teenager’s First Car: A Guide for Anxious Parents

The time has come to buy your teen their first car. We share some insights and expectations to ease the pain.

This guide covers:

  1. Expect high insurance rates.
  2. Buying used or new: the pros and cons of each.
  3. Two things to consider when buying your teen’s first car.
  4. Draw up a contract.

Helping your son or daughter get a driver’s license is significant. Between studying for the written test, taking driver ed/driving lessons, and practicing for hours in the car out in abandoned parking lots and local streets, it’s definitely a cause for celebration when your teen finally earns the privilege of driving independently.

There are many reasons why you might be thinking of getting your teen driver his/her own car. Maybe you want to reward your son or daughter for putting in the work to earn a license, or it could be a practical benefit if they drive to school or run errands. Whatever the reasons, it’s essential to keep some vital things in mind when searching for a vehicle for your new driver.

Whether you’re planning on adding your teen to your insurance plan or getting him/her an individual policy, be prepared to run into high rates. 

Teenagers don’t have the experience that seasoned drivers have, and they’re also generally known for being impulsive (let’s be honest). Because of these two factors, the risk of getting into a collision, getting ticketed for violations, and filing an insurance claim is higher among adolescents, so insurance companies charge higher premiums. 

Drivers aged 16 or 17 are nine times more likely to cause an accident than a 45-year-old driver.

According to a Huffington Post article on securing cheaper auto insurance for teens, “Drivers aged 16 or 17 are nine times more likely to cause an accident than a 45-year-old driver. That’s why car insurance companies charge them three to four times more than they would typically charge people from safer categories.”

Families who add their children to their insurance policies can see premiums more than double, while individual teen policies tend to cost even more. It’s crucial to compare rates so that you can factor this into your budget when searching for a car. 

The good news is that there are specific ways to save on car insurance. For example, companies sometimes offer discounts for students who complete certain driver’s ed courses, earn good grades, or agree to monitor their driving by telematics software to prove they’re demonstrating safe habits. Talk to different insurance companies to see what savings you can secure. 

Is the best first car or vehicle for teenage drivers an old model or a glossy new one with a warranty? Here, we outline the pros and cons for each.

When choosing a vehicle for your son or daughter, there are pros and cons to buying both new and preowned, and you’ll need to weigh the positives and negatives of each to decide what is right for you. Here are some of the main points to keep in mind.

Buying Used: The Pros and Cons

Pros:

Going with a used vehicle can help you save on your teen’s insurance: While many factors are considered when determining how much a vehicle costs to insure, older models tend to have lower premiums because they’re less valuable than newer cars. Typically, this means they’re less expensive to repair or replace.

Used vehicles cost less: This is an obvious advantage if you’re working with a limited budget. 

Many previously owned cars are still in great shape: You don’t have to sacrifice safety to get an affordable vehicle with modern features. 

Cons:

You’ll need to be extremely thorough when shopping: Because used vehicles have a past you don’t know about, there are many steps you should take before committing to buying one, which can significantly extend the length of your vehicle search. Ensuring the vehicle has a clean title, having a third-party mechanic inspect the vehicle, and reviewing the service history are all necessary to help you avoid buying a lemon. 

There may not be a warranty: Unless a car is still under warranty from the manufacturer or a dealership has its own warranty system, mechanical failings generally aren’t covered. 

Related – Buying a Used Vehicle: 3 Powerful Tips To Remember

Buying New: The Pros and Cons

Pros:

You won’t have to worry about mechanical issues: New cars won’t have the wear and tear and mileage that older ones do and are generally covered by warranty. This can give you peace of mind that the vehicle will be reliable, and in the rare case that something malfunctions, you won’t have to pay for an expensive repair. 

New cars have advanced safety features: Modern technology has helped create vehicles that better protect drivers, which can significantly contribute to your main goal of helping your teen stay safe on the road.  

Newer models are generally more fuel-efficient: This can help you and your teen save on gas costs down the line. 

Cons:

You’ll pay higher costs: New cars can be pretty expensive. Most people can’t afford to buy a brand-new vehicle upfront and out-of-pocket, and while loans are an option, interest rates can be high. 

The value depreciates quickly: Newer vehicles not only cost more, but their value depreciates as soon as you drive them home. A car will be worth significantly less than you paid within a few years. 

1. Prioritize Safety

While your teen may be more concerned with the appearance of the car they drive, it’s essential to prioritize the safety of the vehicle above all else. If you’re wondering how to pick an option that’s the most practical in keeping your son or daughter safe, the following tips could help:

Research the model’s collision-test rating: Both NHTSA and IIHS issue safety ratings on specific makes and models. 

Mid-size vehicles tend to be better for inexperienced drivers: Large vehicles like trucks or big SUVs can be problematic for new drivers to maneuver. At the same time, smaller, compact options don’t provide as much protection during collisions. If you’re researching a new or used car or crossover SUV, consider these segments with our reviews and model options:

Limit speed: V6 engines produce more power than four-cylinders, and this enhanced power can make it easy to accelerate rapidly. Teenagers are inexperienced drivers and more prone to riskier behavior at their age (but not your kid, we know). Because of this, limiting the power by opting for a four-cylinder engine may be a safer bet. As a bonus, they’re also more fuel-efficient. 

Look for advanced safety features: If your budget allows, try to find your teen a vehicle that has a few modern security advances in place, such as an anti-lock braking system, electronic stability control, blind spot detection, and/or a rear-vision camera. 

2. Prioritize Comfort

Since your son or daughter will drive the vehicle, include them in the car search. Ideally, they could test drive the vehicle before buying to ensure it fits their everyday needs comfortably.

While some sellers and dealerships allow teenagers under 18 to do this as long as a parent or guardian supervises, others won’t. Whatever the case, learning what features would help your teen feel the most confident and comfortable on the road will help you select the best option. 

Before handing over the keys, ensure a teen driver contract is in place. Here are six simple things to consider in your agreement.

Before handing your adolescent the keys and setting them loose on the road, set boundaries by creating a driving contract, like this PDF prepared by the Colorado Department of Transportation.

A driving contract is an agreement between you and your child that establishes rules and expectations they will abide by to keep the privilege of being allowed to drive. This will help hold your novice driver accountable and allow you to cement further what habits a cautious driver should practice. 

Six terms to consider in your contract:

  1. All parties in the car will wear their seatbelts at all times. 
  2. Graduated licensing laws will be followed (if applicable). 
  3. Curfews will be respected. 
  4. No distractions (using the phone, eating, changing radio stations, grooming, etc.) will occur. 
  5. No driving if tired or intoxicated. 
  6. All traffic laws will be followed. 

Picking out your teen’s first vehicle is an exciting moment, though it can also be overwhelming (for both parties). Dealing with high insurance rates, searching for a vehicle that is both affordable and safe, and making sure your son or daughter is responsible enough to have their own car can certainly be taxing. 

We hope this information helps highlight how you can make this process go as smoothly as possible so that you can focus on the joy and enthusiasm your teen will feel when they get to take the car for a first-ever solo drive. Perhaps the best part for you, the parent? Free rides anywhere, anytime.

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