Your Teen's First Car: Assessing Your Teen's Needs and Budget

Taking the time to do it right

Our Two Cents

New or used? Encourage your teenager to do some homework: Kelley Blue Book and Consumer Reports are two great resources to help decide whether a new or used car is the way to go. Both of these are also available online.

As with any large purchase, buying a car shouldn't be done hastily. Your teen should take the time to calculate how much money he or she can comfortably spend, factoring in hidden costs and extra features.

Pricing a vehicle

There are several different ways to look at the price of a vehicle. Some people feel the overall cost is important, while others are more concerned with monthly payments.

If your teen is more focused on monthly payments, be sure to factor in other fixed monthly costs as well, including:

• Insurance
• Registration
• Maintenance
• Repairs
• Gas

This is a great opportunity to put our monthly budget planner to good use!