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A major milestone for many households comes when their teenagers begin driving. Some families will make arrangements to purchase or finance their teens’ first cars.

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Amid the uncertainties of the current economic climate, however, families may be reconsidering whether they should take on this financial responsibility in 2023.

parents should consider when they decide to purchase cars for their teenagers.” class=”link rapid-noclick-resp”Here’s what parents should consider when they decide to purchase cars for their teenagers.

Consider Purchasing a Used Car

Robert Tomkinson is the VP of marketing at CoPilot, a free app for car shopping that ranks every car from every dealer. Tomkinson said a teen’s first vehicle usually should be a carefully selected used car.

New cars tend to cost more in repairs and insurance for new drivers. The price of new cars also has increased over the last two years.

On the other hand, used car prices have fallen by 10% on average, Tomkinson said. An older model may be where the best bargains are, especially since tax refund season is beginning and putting more money into buyer’s pockets.

“We see a lot of people choosing compact SUV or crossover, like a used RAV4 or CR-V,” Tomkinson said. “These cars are safe, reliable and practical for high-schoolers and college kids. They also hold their value when it’s time to trade up.”

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Look at It as an Investment

Parents who feel hesitant about spending a significant amount of money on a car for their teen may be well advised to view this purchase as an investment.

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