Buying your first car
When I turned 16, the only thing on my mind was not my sweet 16 birthday party, but getting my driver’s license. Of course, first I had to get my permit and learn to drive and then pass the driver’s test before I could get a license, but it did eventually lead up to buying a car.
It’s true, you can have a license and drive without your own car, but it gets annoying to both you and your parents when you constantly have to borrow their car. Even if you do save on gas and insurance by sharing, or maybe you won’t have to pay anything, you’re still going to want to have your own car.
Cars are not cheap. A brand new car could cost you anywhere between $12,000 and $25,000 or more. Unless you have very rich and/or generous parents or relatives, you probably won’t be getting anything fancy.
Even if you get a used car or a cheap economy car, you’ll still have to pay a substantial amount for something reliable. If you buy used, you may spend $3,000 to $10,000.
Before you decide to buy a car, you need to sort out several important issues:
Who’s paying?
Are you’re parents going to buy you the car? In this case, you don’t have much to worry about. But what if they decide you need to contribute something. You need to sort this out first. Are they going to give you a fixed amount, such as $1,000, and then you add on what you can? Maybe they’ll match whatever you can save?
When do I need it?
If you have to pay for it all, it will most likely take longer to get. Either way, you need to figure out when you’ll really need it. Do you need it to drive to work? Do you need it to drive to special school events? Could you manage taking the bus to school for the rest of high school? The longer you wait the more money you will have saved and the nicer the car will be. But if you have a set amount you want to save and anything after that will go to school, you might as well get it sooner, unless you want to save on gas and insurance.
What are your expectations?
Do you think you’re going to get a great $2,000 deal on a 2007 mustang? Don’t count on it. You’ll need to do some research beforehand and figure out what kind of car and in what condition you’ll be able to get with the amount you’re expecting to spend.
Should I finance?
A tempting choice when buying a car at any age is to take out a loan to buy a new or even a used car. You could get a lot nicer of a car, but you have to keep in mind that you’ll have to make payments. With these payments, you’ll have interest tacked on. A loan may seem much easier, but you’ll be spending more. Not only will you be spending more on interest, but you’ll be spending more than if you just bought something cheaper now. You’ll end up spending more.
Where do I buy a car?
There are many different places you can buy a car. You could go to a dealership, or you could by from a private seller such as through the newspaper. If you have no clue what to do, ask your parents to help you out. You don’t want to spend to much and I’m sure they are expecting to have some say in what you buy anyway.
How should I save for a car?
Saving for a car should be just like anything else. If you decide you want to start saving for a car early, say at age 12 or 13, you will have no problem getting what you need if you already have a job or some sort of income. At this age, you could just save most of what you make and count it as savings. When you get older, you should set aside a separate amount for a car. You could make a separate savings account for your car fund. The more you place in your car fund, the sooner you’ll get a car, assuming you’re at the right age.
Buying a car is going to be exciting. You may feel like you’re missing out if you get your dad’s old car, but I would just consider it a blessing. More money for you to save for college (replace with something you find more exciting, if necessary)!
