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Whether your teen is just learning to drive or ready to hit the road, we’re here to help you find a ride that’s safe and affordable. From establishing your budget to shopping around, learn how you – and your teen – can take the wheel with confidence.
Key Considerations When Buying Your Teen a Car:
Buying your teen’s first car is an exciting milestone. But it often comes with lots of questions. Deciding how much to spend, comparing auto loan terms and determining how the purchase fits into your family’s budget can feel overwhelming at first. However, taking the time to find the right car for your teen and your budget will help you feel confident about your decision and help your teen feel confident behind the wheel.
Know your budget
Before you start shopping, connect with a personal lender. They will help you determine how much you can spend and what your monthly payments will look like. You can also use our free auto loan calculator as a starting point to estimate your payment.
In addition to the purchase price, remember to factor in costs like insurance, gas, maintenance and registration. This is also a great time to talk with your teen about financial responsibility. For example, decide who will pay for gas and whether they’ll contribute toward monthly payments or maintenance costs.
Insurance rates can vary depending on the make, model and safety features of the vehicle. Getting a quote on the estimated monthly insurance cost will help you see the full picture of what your monthly payment might look like.
Shop around
When it comes to finding the right car, comparing options can help you find the best deal. Look at both new and used vehicles, and review safety ratings, fuel efficiency and reliability. Many dealerships also offer a vehicle history report at no charge, or you can typically look up a car’s history online using its vehicle identification number (VIN). Checking for open recalls for particular models and years may be worthwhile, too.
Shopping around also gives you a clearer idea of average prices for different makes and models, which will come in handy if you decide to negotiate.
Test drive together
Take your teen along for the ride, and let them sit in the driver’s seat. This is a great opportunity for you to see how they feel behind the wheel, ensuring the car you choose will meet their needs and help them feel comfortable.
During this time with your teen, take a moment to review your expectations. Clear communication helps keep them safe as they begin driving on their own. Topics to cover may include no texting while driving, always wearing a seatbelt and following curfews.
Negotiate with confidence
Once you’ve found a car that fits your priorities and budget, it’s time to talk price. Do your research ahead of time by checking the vehicle’s value through trusted sources like Kelley Blue Book, and compare vehicle pricing with similar models from other dealerships. Now, negotiate with confidence!
Remember: If the number doesn’t feel right, don’t be afraid to walk away.
Enjoy the ride
After the paperwork is signed and the keys are in hand, take a moment to celebrate this milestone. This is an exciting time for both you and your teen, and we are honored to be a part of it. Hit the open road, and enjoy the ride!
Ready to get rolling? Talk with a lender today! Ask about how you can get a 1% rate discount, just by setting up automatic payments from your Gate City Bank checking account.
Cruise toward better auto loan rates! When you buy or refinance a vehicle with us, you’ll enjoy low rates and a simple process. Time to get started with us, and hit the open road!
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