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Car Buying Tips for Teens


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If you are a teenager, buying a car (whether it is new or used) will be a little bit difficult to handle. The first thing to hold is of course the finances. This is where most teens find it hard to buy a car because they do not have the money. Here in TopSpeed.com, we give advises not only to adults but also to teens.

Many teenagers have a small amount of credit history or none at all. If you are a teen wanting to buy your dream car, it is suitable to pay within four years or less. Never go more than that period because the payment(s) will suck you down. As a down payment, it is recommended that you will pay at least the 20 percent total amount of the car. Through this, it will be easy for you to compensate in the long run. If you can not follow the two tips mentioned above then you better not purchase a car.

You should also go for cheaper cars because this is the only way you can pay them unless you are daddy’s little girl or boy. Let’s face it, you do not have a permanent work and the money you have now is only good for your schooling, allowance, and/or food. As a first time car buyer, it is advisable to make a list of all your car payments such as loan expenses and insurance. You should also make a list on some fees for the car’s maintenance – oil change, tires, and battery.

Remember that you are very prone to scams and other misfits because you are a first time car buyer with no knowledge and experience in purchasing a car. When you buy a car, there is no such thing as “grace period”. In other words, no return no exchange unless there is something wrong with it as covered in the manufacturer’s warranty. So you better think twice if you are buying a car.

Car Buying Tips for Teens

When you are a teenager, most certainly, problems and difficulties will arise when you buy your first ever car. First of all, you will have a trouble in getting a car loan. Never submit an application for a car loan if you first did not go through with your credit report and credit score. There are many available tools in the internet that can determine your credit score. These include TrueCredit and Experian. If you have a 550 or less credit score, then we advise you to not yet submit an application for a car loan. Always keep in mind that if you have a bad credit you will pay the loan’s interest rate at a higher amount. If you are rejected in a car loan application, do not despair. You should also not submit many applications anywhere for a car loan. This method will only keep your credit score low. In addition, your credit history will affect your job hunting if you apply for a work right after college.

Getting a car loan with a low credit history is difficult, but what if you have no credit history at all? This situation will pose a problem. The first thing you should do is to start a credit. After starting your own credit line, always remember not to pay late and be a dependable credit owner. You should also practice frugality. If you can do this for more than six months, then you will have a nice credit report.

If your car loans are still getting discarded, then why not try to have a co-sign loan with your parents. With this system, you and your parents are the car loan’s signatories. This method also works in instituting your credit report. If you perform well in your first co-sign loan, then you can have a personal car loan in the future. However, if you fail to pay your co-sign car loan, your parents will have to pay for it. 

Car Buying Tips for Teens

It is not just car loans that first time teenage car buyers will have difficulties. Other complexities include:

  • You will become easily confused with all the finances and the car in general; as a result, you can be mislead by most car dealers
  • You are not qualified to get a car loan for a 5 year old used car 
  • Your auto insurance is much higher as compared to ordinary car owners. This is true especially to unmarried men 25 years old and below. Typically, insurance companies charge teenagers with more or less US $5,000. This is because young persons are more prone to accidents and any other disasters such a drag racing upsets. Moreover, if you will buy a two-door car, chances are, you will have a higher insurance payment as compared to a four-door car. There are many available websites in the internet that cater to teenage car insurance. These include GEICO and Comparison Market.


If you want to buy a used car, Cars.com has listed different vehicle models as the best used car units for teenagers.

The most suited used small cars (2004 – 2005) for teens are the Lexus IS 300, Volvo S40, Honda Civic, 2004 Toyota Corolla, and the 2005 Toyota Corolla.

For mid-size cars (2004 – 2005) the list includes the Ford Taurus, Toyota Camry, Acura TL, Mercury Sable, Acura TSX, 2004 Honda Accord, and the 2005 Honda Accord.

For full-size cars (2004 – 2005), it has the Lincoln Town Car, Ford Crown Victoria, Mercury Grand Marquis, Chevy Impala, 2004 Toyota Avalon, and the 2005 Toyota Avalon.

For Sports Utility Vehicles (SUVs) and Hatchbacks (2004 – 2005) it listed the Toyota 4Runner, Toyota RAV4, Subaru Forester, Toyota Highlander, and the Honda Pilot.
  
On the other hand, Cars.com also recommended some best new cars for teenagers. These are the Mazda3, Subaru Impreza Subaru Impreza , Mini Mini Cooper, Volvo Volvo S40, and the Honda Civic. For brand new SUVs, vehicle models like the Subaru Forester Subaru Forester , Toyota Toyota RAV4, and the Hyundai Hyundai Tucson are apt for teenage driving. Meanwhile, the Toyota Tacoma Double Cab and the Nissan Frontier Crew Cab are the most suitable pickups for teenagers.



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