Hi everyone, we’re looking to finance/purchase a car for a teen driver. Leases seem really bad these days, and certified pre-own cars cost almost as much as a brand new car.
We’re looking for something dependable & reliable, and doesn’t cost a ton. Some of the cars we’re looking at are Honda Civic, Hyundai Elentra, and Subaru Imprezza. Any other cars we should also look at?
For those cars, what % off of MSRP should we realistically be looking at (if any). We understand the days of expecting 10-15% off of MSRP is probably gone for now.
We’ve discussed leasing a car for teen drives quite a bit, and bottomline is usually :
total cost utility over the term
risk of diminished value belongs to the bank, not you
Unless you’re looking at Frontier, nothing fits that bill
Which is why you looked at a CPO, but that has downsides:
in this market where used car prices are showing they may have hit the ceiling and bounced, you’re buying near the top
you own/finance all that downside risk
new / cpo cars plus a new driver = high insurance
As someone who bought their own 10 year old Civic at 17 and paid their own insurance:
there are still good, sub-$5k used cars (all the names mentioned), lots after 2008 that are safe
your teen will ding them up
having and using AAA builds character (and is no less embarrassing than calling to tow your brand new car in)
I wouldn’t buy my hypothetical kid a car, but if I did it’s a late model / reliable / safe used car. they can still drive it like its stolen, blast their music, use their mind altering substances of choice, and make sexy-time in the back seat.
man all those scenarios bring back memories of that Volvo, what a good car
OP: chances are your kids are gonna crash their first car at some point. Almost every teen universally has some hiccup whether it’s backing into a spot, trying to parallel park, tiktoking and driving, etc.
If this was a few years ago, we would definitely be looking at used cars. But the market for decent used cars these days are just outrageous. The $$ they’re asking for used cars is just not worth it.
And we hate to buy a really beat up car and then having to deal with spending extra $ just to fix up things here and there, and having to deal with no car while it’s in the shop.
So yes, while a new car would cost more; it just might save us some headaches.
If you think that over the course of three years, the total cost of ownership of a 10-year-old Japanese car is going to anywhere near approach the cost of a three year old one, you might as well buy them a BMW, you’ve already talked yourself out of your own premise here
1972 Corolla for $600 cash in 1982. Bondo’d top since it had rolled once. Guy I sold it to rolled it to its death in 1992 in New Hampshire. 2TC engine, had to replace wiring harness a few times, so spent time I was supposed to be studying, in pull yards looking for parts.
We seem to have a never ending stream of teens getting their license in my extended family. Our secret weapon has been that my 80 year old mother lives in a senior only complex. Every month someone there dies or can no longer drive and we’ve picked up numerous cars that way. Typically a 10 year old Honda Accord or Toyota Camry with under 35,000 miles. I will say that every teen driving those cars has hit something…mailboxes, boats, other cars, shopping cart corrals, flag poles, etc.
Listen to the really good advice you are being given in this thread. I have put 3 kids into cars in the last 5 years. It is not pretty. Bottom line is each got into minor scrapes, in some cases more than one. In a lease, or a newer car, you will be paying for those “incidents”. Get something safe, cheap and easily insured.
Am I the only person who didn’t get a car when they were a teenager? Until 21, I took the bus until I was able to buy my own care. And yes, IT WAS, a mile walk to the bus stop.
Like the other posters said, there’s plenty of reasons why you shouldn’t buy a teenager a new car. It spoils them - it really does. Insurance companies don’t charge those high premiums for nothing - teenagers get into a ton of accidents.
Have you seriously calculated the cost of Ubers compared with payments, insurance, and gas? Contrary to what your teenager might be telling you, they will not die if they take public transportation. There is a good probability that prices will stabilize near the end of this year, why can’t they wait?
If you choose to just roll your eyes at what I wrote add Kia to your list. Larger sedans aren’t selling as much as they used to and they are safer than tiny cars, so look into those too.
I worked a great deal to pay for my first car, but I also had a lot of help from my parents. I am not spoiled; to this day I treat my cars very well. To the point of annoying my family.
I have put 3 kids into cars in the last 5 years. It is not pretty. Bottom line is each got into minor scrapes, in some cases more than one. In a lease, or a newer car, you will be paying for those “incidents”. Get something safe, cheap and easily insured.