Your teen is turning 16. Maybe you’re seriously considering buying your teen a car but can’t decide which route to go. Do you get a new car or a used car? Maybe they passed their drivers license test and you’re ready for them to start driving themselves so you can get some of your free time back. Here’s some financial aspects to consider when making your decision.
It’s not a secret that insuring a teen is EXPENSIVE. The reasons for that are pretty obvious: lack of driving experience, maturity, and statistics. Now I don’t want to scare you (I’m sure you’re already a little nervous) but the fact is teens are more likely to be in a fender bender than those 20 years of age or older. According to the CDC website that rate of accidents is at it’s highest within the first 30 days of licensure. Being a higher risk means higher rates.
The next thing to consider is what kind of car. Again, the insurance factors in. You might think a cheaper car equates to cheaper insurance. Not necessarily according to a report done by CNBC. It turns out SUVs and trucks are usually cheaper to insurance than coupes and sedans. Why? Because a larger SUV is less likely to sustain as much damage in an accident when compared to a smaller car. At the top of the list for vehicles that are cheaper to insure are the Ford Explorer, GMC Sierra and Toyota RAV4. In fact, some of the worst cars to insure are the Ford Focus, Chevy Cruze, and Hyundai Elantra.
You can contact your insurance agent before buying a car your teen has their eyes on and have them run the numbers.
Since driving a car is a big responsibility consider having your teen help with the car payments and/or insurance payments. Make sure they know how to change tires, what to do if they are in an accident, and have them learn how to do some of the basic maintenance of the vehicle like changing the oil, topping off fluids, and changing bulbs. It’s a good way for your teen to know the cost of driving and take more ownership of their own ride.
This post is sponsored by CF Search Marketing.
