By Gretchen Yoder
I have a teenager (or two) who is looking for her first car. We want to buy something reliable – but not too expensive. I made a deal with her several years ago that if she earned money toward her car I would match it up to a certain point. (I have a budget too). She has been working diligently and we have finally decided to buy her a new to her-used car. Neither of us know much about cars. I tend to buy a car and keep it for 10+ years, so it has been a while since I shopped for cars. I asked for a little help. Here are the tips that a couple wise friends gave us.
Step One: Know what your budget is. Initially understanding the cost of the vehicle and what you can afford is important. Do your homework on the type of car you want. KBB (Kelly Blue Book) and Consumer Reports are great reputable organizations to do this research. Think about the total cost of the car – not just how much you can afford on monthly payments. The budget framework will also help you decide which kind of car you can get. (ie. You may be able to get a newer sedan than SUV). If you can, try to pre-arrange financing through your bank or credit union. Teens don’t typically have a credit score yet, so a parent may need to help or (even better) be prepared to pay the car off in full.
Step 1a. Don’t forget about other associated costs. Knowing the cost of the car is one thing, but also try to determine gas mileage and figure in regular oil changes (or learn on your own).
Step 1b. Insurance! It is a state law in Colorado that we have auto insurance. While this does not have to be expensive (insurance is also rated on the cost of the vehicle so the less expensive the vehicle the less expensive the insurance).
Step 1c. Also, think about the cost of tires. While a SUV may be a cool car – when it comes to tires you will have to replace all four at once versus a front wheel drive where you can replace just two at a time.
Step Two: Shopping! Just like any shopping task, don’t get hung up on one particular car. Keep an open mind and consider several different vehicles and sellers. This will put you in a better position to negotiate the best price. Check places like CarGurus.com, Craigslist.com, autotrader.com or Edmunds.com. Typically, you can find better deals when you buy from an individual – but it may take a bit more work. You will have to file the paperwork with the state; you may have to go to different places to see/test drive cars, and you really to need to make sure you don’t skip step three!
Step Three: You think you’ve found the right car. You’re still not done with your homework! Ask for a Carfax report. Using the vehicle’s VIN number (found on the dash or on the door), you can find out the car’s history. Has it been in an accident? Has the car been stolen? Are there regular maintenance records? We also recommend you have a mechanic check it out (especially if you are buying it from a private party). A mechanic will typically charge around $100 to do this quick inspection – but it may save you a whole lot more in repairs later.
Congratulations! You are now equipped to help your teen (or you) find a fantastic car.
