Buying Your Teen a Car
By Kristi Vaughan
When it comes to buying your teen a car what comes to mind - safety or coolness? New or used? And how about the impact of car choice on insurance rates? The desire of teens to have their own wheels has existed for as long as teens have been driving. So have parents' questions about the best car to buy.
A review of websites and magazine articles offers the following recommendations and considerations:
Safety
Every year the Insurance Institute for Highway Safety conducts crash tests on new model cars. If you have the make, model and year of the car you are considering you can view results of tests on side impact, frontal crashes, head restraints and bumper impacts on the non profit group's website. Crash test results also are available through the National Highway Transportation Safety Administration.
Popularity
As every parent knows, being cool, or perceived as such, can be all important to teens. According to a 2001 survey by Autobytel.com, an online car buying service, the most requested cars were the Honda Accord and Civic, Ford Mustang, Mitsubishi Eclipse, Toyota Camry, Ford Explorer, Volkswagen Jetta, Nissan Maxima, and Jeep Grand Cherokee and Wrangler.
Insurance
There is little a parent can do to change the experience rating of a teen driver. But buying a safer car can help to keep a lid on insurance costs. Sporty cars, fast cars and small cars may come with higher insurance premiums. The Insurance Information Institute offers advice on Shopping for a Safe Car and Teenagers & Safe Cars.
New vs. Used
As tempting as it may be to buy a used car that already has seen the dings and dents of wear, your teen might be better in a newer car. Not only will the safety features probably be better but there could be less costly maintenance.
If you do opt for a used car, look for the Buyers Guide that the Federal Trade Commissions Used Car Rule requires dealers to post with each car. This guide outlines warranty, if any, a listing of the major electrical and mechanical systems and the percentage of repair costs a dealer will pay under the warranty.