Your teen passed their driver’s test and is now a new driver. Whether you want to buy them a car as a birthday gift or graduation gift, there are a few things to consider before you find them the perfect car.
As you ponder this new milestone in yours and your child’s life, you’re beginning to question which car is best. Should you buy them a new car versus a used car, or should you just give them your car, and you upgrade? These are definitely good questions, and let’s take a good look at these options before you head over to your local car dealership.
Pros and Cons of the New Car
- Low maintenance.
- The teen can concentrate on driving.
- No worries – at least not right away.
- Latest safety features.
- Depreciation – new cars lose value faster than used cars.
- HIgher Insurance Rates – New Car premiums along with new driver. (inexperienced driver) premiums.
- More wear and tear – A young teenage driver will definitely leave dents and scratches as they become more comfortable behind the wheel.
Pros and Cons of the Used Car
- Used cars are more inexpensive to purchase compared to new cars
- They will lose less value over time.
- Insurance premiums will be lower.
- You will have increased maintenance costs..
- Used cars also don’t always have all of the latest safety equipment – When purchasing any used vehicle you should always examine the safety features.
- Larger probability of car breaking down
- Dealer may have a limited warranty or may not have one at all – “As is.”
Pros and Cons of the Hand-me-down
A good solution may be to give your child a hand-me-down car. In other words: You’ve driven it for a few years, and now you hand those precious keys over to your teen.
- Being selfish isn’t as bad as it sounds – You’ve driven it, you know its working condition.
- You are aware of its maintenance history, reliability, etc.
- Insurance premiums will only go up a little to insure your teen.
- The hand-me-down can suffer from some of the same problems as a used car
- It may lack some of the newer safety features.
Before making any decision consider what safety features you are looking for, what your price range will be and how you are paying for it, (i.e is your teen going to be working for the car, helping to pay insurance, etc.) This is definitely a great milestone with many worries and new headaches to accompany it. Don’t let it take you by surprise and just use these tips to help you make the right decision for you and your teen.