The excitement of getting their license causes many teens to want a car of their own. However, parents and teens must consider all the options before heading to the dealership for this purchase, the Milford Daily News reports.
Researching the safety and reliability of cars is key, the news source reports. Then, families must determine how they will finance it. Teens may be able to take out a small, bad credit auto loan and make timely payments to build their credit score. The news source says this is one of the best ways for a teen to build credit.
However, auto loans will not pay for the down payment, which teens must save for. The news source also reminds families to be prepared for sales tax and insurance costs, as it can be very expensive for a teen driver. Teens paying their own insurance should be prepared to make large payments each month.
Other families may decide to split the costs of owning a car between parents and child, Cars.com reports. Who pays for what should be mapped out clearly before any papers are signed, the news source suggests.