Many teenagers have dreamt of their first car long before they stepped into their first drivers education class. From make to color, teenagers know exactly what they want, but dreams are not always attainable. There are several factors both the teenager and parents need to consider. While the brand new Lexus ES 350 seems ideal, luxury is not always the best choice. Here are a few considerations before making that big purchase. After reading over, A Teenagers Guide to Purchasing Your First Car, give us a call and let us figure out how to get you the best rate for your teenage driver
Cost- When purchasing your vehicle; keep in mind the additional expenses, such as gas, maintenance, and new jersey auto insurance. According to Autoblog, the annual cost of a car averages $8,946 per car, with costs including monthly payment, fuel, maintenance and insurance.
Finances- First, decipher who will be purchasing the car. In order to be cost effective, obtain the Credit History and Credit Score (FICO) prior to visiting your first dealership. Then consider the quantitative elements; the amount you are able to put down (the more you put down, the less interest you will incur), the amount you can afford to pay monthly, and the length of time it is going to take you to pay off your vehicle.
- Used or New– Although it is lovely to smell the new car scent every day for the next month, it is not always realistic or attainable. However, if you do decide to purchase a new car, consider these cost effective factors.
- During the end of summer and early fall, many car dealerships introduce next year’s model and need to replace current inventory with the new models. They considerably discount current models.
- Quotas- Automotive companies either have a yearly or a monthly quota that needs to be met. Take advantage of their deductions.
- Inquire about dealer incentives or rebates.
- Negotiate- The sticker price is simply the manufactures suggested retail price (MSRP). Discuss factors that might reduce the cost, such as how often you purchase cars from that dealership and the near perfection of your FICO score.
If a new car is not in your price range, consider purchasing a used car. However, there are a few factors to consider.
- Research and inquire the car’s history. Has it been in an accident? Is it stolen? Did the previous owner pay on time?
- Safety- Have a qualified mechanic thoroughly inspect the automobile.
- Public resources like the Better Business Bureau provide information regarding a dealership’s reputation and possible legal problems.
What is the car used for? – Decipher the vehicle’s primary purpose. If a college freshman is commuting 40 plus miles to their university, consider buying a hybrid. The inventory for hybrids has considerably grown throughout the past years. However, if a high school student is simply driving to their school, and making the occasional trips to the local mall, then spending a little extra on a hybrid may not be necessary.
- Gas and Maintenance- Is the city and highway mpg affordable? Usually, the manufacturer will educate the owner on the car’s maintenance needs. Generally an oil change occurs every 3,000 miles and a wheel rotation occurs every 6,000 miles. Later down the road, realignment, installment of new brake pads and tires will need to be done. Consult your owners manual for exact mileage.
- New Jersey Auto Insurance- Unfortunately a teenager’s insurance costs more than an experienced driver. However, there are ways to decrease your insurance fee such as, good student discounts and clean driving records. Insurance regulations vary for every state and by carrier, so do some research to see if you qualify.
At Vreeland Insurance, we tailor your New Jersey auto insurance policy based on your specific situation, the vehicles you own. We can help provide you with the basic coverages you need – such as Liability Insurance, Uninsured and Underinsured Motorists Coverage, Medical Payments, Comprehensive and Collision. Give us a call today – (877) 755-3767
*additional note – for those teenage drivers who have trouble with their parallel parking skills, check out this guerrilla marketing case study about cars with active park assistance, The world’s worst parallel parker.