Best Cars for Teenager - Teen Drivers
Good Cars for Teenagers - Safest Cars for Teens and Young Drivers
Deciding on the best car for teenage drivers depends on who is doing the deciding — the teen or their parents.
Teenagers and their parents tend to have different objectives and priorities when it comes to cars, although it's often not difficult for the two parties to come to a mutually agreeable decision, especially when each party is willing to compromise a little. In this article, we'll try to look at the subject from both points of view.
What Teens Want
Teenagers place importance on style, appearance, performance, size (not too large but enough room for friends), and accessories. An automobile is a projection of a teen's personality, sense of freedom, and desire for peer approval — as well as possibly serving a practical need for getting back and forth to school and job.
What Parents Want
Parents want safe cars for their teens. Parents also place importance on economy (low purchase cost, low operation cost, and low maintenance cost), reliability/dependability, and low insurance cost. Teens who are expected to pay their own way may also place importance on many of these factors.
Cost is Major Factor
The first issue that most teens and their parents usually struggle with when deciding on a car is that of cost, which typically leads to the issue of used-versus-new.
An older car is certainly going to cost less than a brand new model. However, older used cars will generally be less reliable, may develop unexpected repair expenses, have less safety equipment, and not be as attractive as a newer model. On the other hand, insurance cost and taxes can be less.
Many teenagers prefer to buy an inexpensive older model car, such as the ever-popular Honda Civic, and spend money to repair it and customize it to meet their needs. These added costs can easily get out of hand and exceed the price of a new car. Performance-enhancing changes and engine modifications can often increase operating costs (lower gas mileage), maintenance costs (lower reliability), and insurance costs (higher risk and repair cost). Nevertheless, "tuners" and highly customized cars are very popular with teens.
Cars for Teenagers - Top Recommendations
Because of the wide variations in availability and characteristics of used cars, we'll stick to a discussion of new cars. However, used cars tend to have many of the same characteristics of new cars of the same make and model. Just keep in mind that newer cars tend to have better safety equipment, better reliability, improved gas mileage, and, in some cases, lower insurance rates - because of better safety and reliability. Some older cars have high insurance rates because they are more often stolen (for parts) than new models. Honda Accords from the early 1990s are a good example.
Although most of the following recommendations are for smaller, less expensive vehicles, many teenagers prefer to drive larger vehicles such as SUVs and trucks. We don't recommend large SUVs for teens due to the higher skill required to control them in emergency situations, the high cost of operation, and expensive insurance. Even smaller SUVs such as the Ford Escape, Honda CR-V, Toyota RAV4, and the Nissan Xterra are much less stable than a conventional sedan or coupe.
We'll list some of our top recommendations below, listed in no particular order. These are certainly not all the cars that might meet the needs of teenage drivers and their parents, but are some of the most popular.
Honda Civic - This is the most popular car among teens — and parents. This car has almost all of the qualities desired by both teens and parents: economy, style, safety, reliability, performance, low insurance rates, good size for passengers, and driving comfort. There are tons of accessories, custom appearance products, and performance options for the Honda Civic. Base price for a new Civic is about $14,500. The new re-styled model has won Motor Trend magazine's "Car of the Year" award and is a Consumer Reports Magazine Top Pick award. Honda also produces a fuel-efficient hybrid version of this vehicle, at a slightly higher cost. Used models of the Honda Civic are readily available, reliable, and hold their value very well. For a car with similar qualities, but larger with more interior room, consider the Honda Accord.
Scion xA/xB/tC - Toyota has created a line of popular vehicles that specifically targets young drivers. The Scion is full of standard features, and optional features, that appeal to teens, is relatively inexpensive, and has a good-performing and fuel-efficient engine. It also has some great safety options such as side air bags. Although not outstanding performers, and ride comfort is lacking, these are typical Toyota high-quality vehicles at base prices that start at about $12,500 for the xA, $13,700 for the xB, and $16,000 for the tC. After the 2006 models, the xA disappears. A 2007 version of the tC and a 2008 xB will be available.
Toyota Corolla - This Toyota vehicle shares many of the characteristics of the Honda Civic and is a favorite among teenagers as both a new and used vehicle. It's reliable, with good performance, has plenty of room inside, and there are many options from after-market companies for styling and performance improvements. Buyers of this vehicle, and others in our list, should consider getting the stability control option when available. It's one of the most effective safety features being offered on cars today. The Corolla is priced at about $13,700 for base models. If the Corolla is not quite large enough, look at the Toyota Camry, the best-selling car in America for the last few years.
Nissan Sentra -This is a sensible car for teens, having many of the attributes of the Honda Civic and Toyota Corolla, but a little less style. It's comfortable, but with a harsh ride and little room in the rear seat. However, it gets good gas mileage, is reliable, enjoys relatively low insurance rates, and is priced at about $12,700. Used models can be found at good prices.
Mitsubishi Lancer - This is a very popular vehicle with teens, especially the turbo-charged Evolution, although it might not be the first choice of parents. It's stylish and looks cool, besides being a super performer. There are lots of add-ons and custom equipment for this vehicle. It even has it's own magazine aimed at young drivers of this vehicle. Watch out for reliability problems and higher insurance costs. The Lancer starts at about $14,300 for the basic model.
Ford Focus - This is a fun and sporty car that teenagers like. It has a firm but comfortable ride and a number of engine options. Interior material quality appears cheap but functional. There are no less than 12 different variations of this model that should allow almost any teen to be satisfied. Prices start at about $13,300 for base models. It may not be as reliable as a comparably priced Honda or Toyota.
Mazda3 - This vehicle is not particularly extraordinary but is an excellent small car with good interior space, good performance, and good quality. It comes in both a hatchback and sedan and starts at about $13,700. New models are very stylish and youth-oriented. Prices for used Mazdas are very reasonable.
Car Buying Tips for Teens
Teenagers can be so eager to get into a car that they overlook the many possible pitfalls of the buying process, particularly when buying a used car.
Teens often can only afford inexpensive ("cheap") cars due to limited funds. See Where to Find Cheap Cars for tips on where to find affordable used cars.
Used cars are sold "as-is," meaning that there are no guarantees or warranties. If problems develop after the purchase, the car can't be returned. That's why pre-purchase inspections by a qualified mechanic are so important. Inexperienced buyers often naively take the word of a used-car seller or dealer salesman about the condition of a car.
Use CarFax to get a history report on any car being considered. Consider buying a certified used car, which offers some protection against surprise problems, at a somewhat higher cost.
Look for cars that have no more than average mileage. Fifteen thousand miles a year is considered average. A three year-old car with 45,000 miles would be average. Higher mileage cars pose a higher risk of problems.
Teens and Car Financing
Let's say it right up front — leasing and long-term loans are not good ideas for teenagers. Why? Because teens will very likely become tired of a vehicle before the lease or loan expires, while they are still "upside down." Getting out of vehicle with negative equity then becomes troublesome and costly.
Many people make the negative equity problem worse by buying or leasing another vehicle and rolling the old upside-down loan balance into new vehicle financing — a cycle that is often repeated multiple times, making the problem worse at each turn of the cycle. This is a bad way for a teenager to begin a lifetime of buying cars. It can easily result in credit problems that will haunt them for years to come.
Avoid "buy-here-pay-here" dealers, who charge high interest rates and are very intolerant of late or missed payments. Much of their business is selling, repossessing, and reselling cars.
Avoid extremely long-term loans and low down payments. Even though the lower payments in longterm loans are appealing, interest rates are higher, overall financing cost is greater, and the loan is "upside down" for most of the loan term.
Being upside down means that selling or trading can be troublesome because the amount owed on the loan is greater than the value of the vehicle. It also causes great risk if the vehicle is stolen or totaled in an accident because insurance will only pay the market value of the vehicle, not the balance of the loan.
Avoid dealer offers to "pay off your old loan" in trade-in deals because the negative equity in the old loan will simply be added to the new loan, making the upside down situation even worse. Dealers often don't reveal this fact.
Teens and Credit
Many teenage first-time drivers have not had time to establish a credit history, which can cause financing issues. Some who do have a credit history, have had late payments and defaults which reflect negatively on their reports.
Excessive debt is the leading reason for credit problems with young consumers. Such problems can be avoided through proper management of debt. Debt consolidation and debt relief are two of the methods. Credit Solutions is a company that has provided this kind of service for thousands of consumers.
Getting appoved for a loan and buying car insurance are based on credit scores, which are determined by consumers' borrowing history. This information can often be wrong or outdated. It's always wise to know your FICO® credit score before looking for financing.
A poor credit score can result in very high interest rates, high insurance rates, high down payments, and even loan refusals.
RoadLoans.com is a well-respected car loan company that specializes in lending to people who have limited or poor credit. This company's rates for young drivers are some of the best.
Teens often get started in car financing by having a family member co-sign for them. This is a good way to establish a good credit history for future financing.
Teens should realize the importance of not overextending themselves financially and of making payments on time. A single late payment can result in credit score reductions that can take months, even years, to fix. A single repossession or loan default can be devastating.
Calculate Loan Costs
To help decide on a price range for a new or used car, it's best to use a car loan calculator to experiment with vehicle prices and options that produce an affordable monthly payment. It's important to understand the relationship of interest rate, loan term, and loan amount to monthly payment amount.
The calculator works equally well for both new and used car loans. However, teens should understand that there are other costs associated with car ownership. There are insurance premiums, annual property taxes, tag fees, maintenance (oil, tires, filters, etc.), gas, road tolls, parking fees, and repairs.
Teens and Insurance
Car insurance for teenage drivers is very expensive because they represent a high risk of accident and liability claims to insurance companies. Adding a teen driver to a family's auto insurance policy can mean a 50 percent to 100 percent increase in parent's insurance premium costs. Taking a separate policy is even more expensive. Therefore it is important to shop for the best rates while still getting coverage that is needed or legally required.
Find out how to select the right insurance company for teenagers in our article, Auto Insurance Companies - Best and Worst. Learn how to shop for companies that have the best discounts for teens. Compare rate quotes from multiple companies from online services such as Insurance.com. The quotes are free.
