Take the stress out of buying your teen a car
Choosing a safe car for your teen is a big milestone but it doesn’t have to be a stressful one. From safety features to financing, find out how to make the shopping experience easier for you and your teen.
Even though car prices have not yet levelled off following a spike due to supply chain issues and increased demand, that doesn’t mean you can’t find a great option out there now.
The time has come: Your child is preparing to get their driver’s license and get behind the wheel of their own vehicle. For many teens, this moment is an eagerly awaited rite of passage, a day they have looked forward to for years.
Parents of teen drivers, on the other hand, are concerned with practical questions surrounding the purchase. Navigating the vehicle options, safety features, ratings and financing options can be more stressful than parallel parking an SUV. But if you shop smart — and safe — you can go a long way toward alleviating stress.
Here we answer some of the most common questions and concerns parents of teen drivers have when shopping for a vehicle for the teen driver in their family.
How can I find a safe vehicle for a young driver?
Many parents have lost sleep worrying about the day their child trades in a learner’s permit for a full license. Thinking about your teen behind the wheel might cause jitters, but there are many robust safety features that come standard in today's cars, and that should help put you at ease. Even used cars are equipped with tried-and-true features like driver- and passenger-side airbags.
To help you make a smart decision about safety check the National Highway Traffic Safety Administration’s safety ratings and crash test results. Limit your search to vehicles with four- or five-star safety ratings. Another great idea is to look at reliability ratings from a trusted source, such as Consumer Reports or J.D. Power and Associates.
New vs used: What are the do’s and don’ts when buying used?
Now that you’re up to speed on the most important safety features of your teen’s vehicle, it’s time to think about what car to buy. And that means asking yourself an important question to start: Should I buy new or used?
For many parents, buying a used car as a first vehicle for their teen driver is the most common option.
What does that mean with the price of used cars remaining high? If you have $10,000 to spend on a car, you can still buy one, but it might be an older car for the same money. There is a silver lining though, if you have a trade in, it might be worth more today and you can factor that into your purchase.
Here are some do’s and don’ts to help ease the stress of the buying process.
Ultimately, don’t be afraid to walk away. If you’re not satisfied with the test drive or the deal being offered, remember that it’s OK to pass on the purchase. Remember, too, that this is a business transaction, so there’s nothing personal in telling the dealer you’re not prepared to sign on the dotted line.
According to Consumer Reports, if you can wait to buy a car, it might be a good idea. With interest rates going up prices may start levelling off soon.
What are the options for financing a vehicle for a young driver?
You've shopped around for a safe vehicle, you’ve decided on the right car, and you’re ready to make the purchase. Now it’s time to decide how to pay for the vehicle. Even if you’re buying a used car, this will be a significant purchase. Research your financing options and determine the best one for you before you settle on a car.
If you choose to finance a car, you may want to stop into a bank and get pre-approved before you visit car lots, that way you know exactly what your buying options are. Although car dealerships are eager to offer in-house financing, it is wise to speak with additional lenders before deciding on the financing option that is right for you.
Other considerations when choosing a financing option include low interest rates, flexible payments and down payment requirements, and for leased cars, mileage caps.
Be prepared when you are ready to apply for a car loan by bringing:
Depending upon the amount you need to finance or the year of the car, a car loan may not be available, and an unsecured personal loan might be a better option.
Picking out a car for your teenager and handing them the keys is an important milestone. It doesn’t have to be a stressful one.
For more information on buying a new vehicle, visit these additional resources to help as you navigate the process. And visit the U.S. Bank Vehicle Marketplace where you can shop for vehicles, calculate payments to see what you can afford, get pre-approved, and locate a dealership.