Please begin typing, and select your location from the list
Recently Searched locations
- or -
Trending Articles in Your Area
List: Posted: 12/10/10
Financing a car for yourself is intimidating enough. Now it's your child's turn to drive, and you don't even know where to start. Your best starting point is this question: Do I finance a new car for my child? The answer is no. Financing a new car for a teenager is just a bad idea.
Although your teen may be a good driver, accidents happen and they're much more likely to happen to a teenager. Don't get caught financing an expensive car that he or she might wreck in a few months.
Additionally, financing a new car costs a lot of money. If you're going to be financing a car for your child, look at cars that aren't very expensive. Hondas and Toyotas are great, reliable vehicles regardless of the year. Buy your child something that they like, but not something that you can't afford.
New cars lose twenty percent of their value within the first year. If you're financing a car for your daughter but you can't make a twenty percent down payment, you'll be upside down in your loan. You still have to pay for college, so financing an over-priced new BMW will only worsen your financial situation.
If you are concerned about maintenance on a used car, look into financing a car that is like-new. People trade in newer cars all the time, and sometimes you can find them at really great prices.
The material in this article is for informational purposes only. The views expressed in this article are those of the author and do not necessarily reflect the views or opinions of Local.com. See Additional Information