How to Save Money on Your Child’s First Car

Posted on Feb 21 2017 - 3:02am by Jeff Dunham

A car makes for a fantastic present for your child. Not only does it save you from picking them up and dropping them off at all hours, it gives them the sense of independence that many teenagers crave.

First Car

However, buying a car, new or second-day, does not come cheap. Making the right purchase is often all about getting a car that is safe, but that doesn’t cost the earth. The look of the car is less important (although perhaps not for your child). If you’re hoping to save money on this big purchase, then here are a few tips.

Insurance

When purchasing a car for your child, you’ll quickly discover that the car itself is not the only thing that will burn a hole in your finances. Insurance is particularly high for young drivers, where their lack of experience or prior safety record counts against them. To keep the cost of insurance down, be careful which type of car you buy – some, particularly older models, will be much cheaper than others. Avoiding modifications to your car and increasing your excess are other methods of reducing your insurance costs.

Even when you’ve got your insurance sorted, that doesn’t mean you need not worry about your child getting involved in a road incident. If an accident does occur, you may require some help from car accident lawyers to ensure that your child is not unfairly treated by the legal system or the other parties involved. Although inexperience is a major cause of car accidents, young drivers are not necessarily at fault. A more experienced driver may try to use your child’s youth against them in a legal contest, which is why professional support is sometimes advised.

Financing options

If you’re buying a new car there are likely to be a variety of financing options available to you. A personal loan could be sourced from your bank, or the dealership may offer you a selection of payment options.

Whichever option you choose, make sure you are able to meet the monthly repayments and compare the amount that you will paying against the cost of buying the car outright. You will obviously pay more for a car on finance than compared to purchasing it outright, so make sure you are getting a good deal. Of course, be sure to shop around to compare financing options – don’t just take whatever the car dealership is offering you.

Second-hand deal sounds too good to be true?

A second-hand car can provide a more affordable option for any parents purchasing a car for their child. The main concern here, is whether a second-hand car will prove reliable in the long-run. There are no guarantees with most second-hand purchases, so if the gearbox fails a week after you’ve bought it, you are going to be in for some large repair bills. You may also be more concerned about your child’s safety if you aren’t entirely convinced about the quality of your purchase. If you do your homework, however, and shop around then a second-hand car can suit your child and your own finances perfectly.