What to know about buying a car for your teenager
Key takeaways
- Setting expectations with your teen during the car-buying process can help to eliminate disappointment and reduce stress.
- Shop based on your budget and vehicle safety. Consider costs beyond the purchase price of the car, like fuel and repairs.
- Look for ways to save, like car insurance discounts if your teen takes a drivers’ ed course.
You likely remember the excitement of buying your first car. But now that you’re the parent of a new driver, your focus will be less on the vehicle’s sound system and more on its safety, reliability and affordability.
Whether you purchase a new or used vehicle, there are some things to know about buying a car for your teenager. These tips will help you balance safety, reliability, affordability and your new driver’s excitement when car shopping.
1. Set expectations in advance
Buying your teen’s first car is an exciting occasion for both parties, but before heading to the lot, set and communicate expectations for the vehicle and the buying process, including:
- Vehicle budget. If you have $10,000 to spend, you don’t want your teen looking at $30,000 vehicles. Discuss this as early as possible to avoid disappointment.
- Vehicle type. If you have determined you want your teen to drive a sedan instead of a sports car, let them know upfront.
- Responsibilities for owning a vehicle. Let your teen know what you expect them to take care of, from vehicle maintenance to keeping track of important documentation.
- Responsibilities for operating a vehicle. This includes following laws about speeding and mobile device use while driving. As your teen takes to the road, make them aware of the consequences of violating these laws.
This conversation doesn’t need to be a lecture. Focus on having a dialogue outlining the responsibilities of owning and operating a vehicle.
2. Invest in driving school
Drivers’ education classes are mandatory for young drivers in 37 states, but even if the classes are not required in your state, consider having your teen complete one before getting behind the wheel. This will help to ensure your teen knows the rules of the road and understands driver safety. As a bonus, you may also get a car insurance discount if your teen completes a course.
3. Shop for safety
Getting a safe car is essential. Teen drivers between the ages of 16 and 19 are three times more likely to crash per mile driven than older drivers, according to the Centers for Disease Control and Prevention.
- Avoid V-6 engines with faster speeds.
- Don’t assume bigger is better. A larger vehicle may be more difficult to handle and is more likely to seriously injure or kill pedestrians.
- Look for safety features like airbags, anti-lock brakes and electronic stability control.
- Review vehicle safety ratings on the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety’s websites.
4. Choose between new and used
When deciding the best car to purchase for your teen, consider the cost, safety and insurance options available.
| Buying used | Buying new | |
|---|---|---|
| Cost | Used cars sold for just over $25,000 on average in January 2025 (KBB). | New cars sold for $48,641 on average in January 2025 (KBB). |
| Safety | Depending on the model year of the used vehicle, it may not have the safety features you want. Aim to purchase a vehicle made after 2018, as most will have a backup camera. | Many newer vehicles boast advanced safety features such as lane assist or blind spot monitoring. |
| Insurance | Insurance is less expensive for a used car, even with a teen driver. | New vehicles tend to carry higher insurance premiums than their used counterparts. |
Also, consider purchasing a certified pre-owned (CPO) car. These vehicles are typically returned leased vehicles or new trade-ins. CPO vehicles come with factory-backed warranties and the inspection of a reputable dealership. They are usually less expensive than a brand new vehicle, but higher priced than a typical used car.
5. Check used cars for quality
Used car prices are typically significantly less expensive than new car prices. However, putting a teen in a car that has not been well-maintained can lead to disastrous results.
If you opt for a used car, check it over thoroughly before buying. Go for a certified pre-owned car (CPO) or ask a mechanic certified by the National Institute for Automotive Service Excellence to do a thorough used car inspection to confirm it’s in good condition before you buy.
6. Share the costs
It may not be possible for your teen to contribute much towards the purchase price, but there are other ways to split the cost of owning the vehicle. This approach should give your teen a greater sense of responsibility and pride for the vehicle, as they now have a financial stake.
Before you buy, work out what your teen will cover. This can include maintenance costs, gas, and insurance. Make it clear whether your teen will be partially or wholly responsible for any expenses, and keep communication open. If your teen is covering the purchase price and is over the age of majority, they might qualify for a first-time car buying program.
Bankrate staff insights
7. Opt for teen-friendly features
Some cars offer safety features specifically geared toward teen drivers, like backup cameras. Visit the National Highway Traffic Safety Administration’s website to view safety ratings on cars you’re considering.
Also, look for a fuel-efficient car to reduce the cost at the pump. If your child needs a car for school, sporting events and visiting potential colleges, fuel costs can add up fast. When college time rolls around, your child will likely thank you for helping them select a fuel-efficient ride.
Other considerations before buying a car for a teenager
While setting up expectations with your teen is an important step, there are some financial aspects you should consider before you and your teen start shopping. Determining how much you should spend and calculating the costs beyond the purchase price
Determine how much you want to spend
The right amount to spend on a car for your teen will be different for you than for someone else. Experts recommend that your car expenses not exceed 20 percent of your take-home pay. That includes monthly payments, insurance, gas and maintenance.
If you already have one or more car payments, the amount you can afford for an additional car shrinks.
First, determine how much car you can afford for your teen. If the out-the-door price of the car you’re considering is at or below budget, use a cost-to-own tool to estimate expected costs.
Research costs beyond the purchase price
You want the best deal on your teenager’s first car to maximize your dollar. But you need to factor in costs beyond the purchase price to avoid surprises later down the line.
Here are some other costs to be mindful of:
- Car loan fees and interest rates. Ask your lender about car loan interest rates and other fees that you’ll be responsible for paying.
- Fuel costs. Fuel costs vary by location, but you can view estimated annual potential costs by year, make and model on the U.S. Department of Energy’s fuel economy site.
- Maintenance and repairs. Use Edmunds car maintenance calculator to estimate maintenance costs on the vehicle you’re considering.
- Car insurance. Speak with your insurance agent to understand how much it’ll cost to cover your teenager under your policy. And don’t hesitate to shop around if the number they give seems too high.
Bottom line
Buying your teen’s first car doesn’t have to be stressful. Consider involving your teen when it’s time to shop so they understand the purchase process and the costs associated with owning a car. They’ll gain knowledge that can help them when it’s time to buy a car on their own.
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