My First Car: Car Buying Tips for Teens

Shopping for your first car is an exciting time—so exciting that you may feel tempted to rush through the process. Take your time and follow these tips on car buying to get the vehicle that best fits your needs and your budget.

Safety First

Safety features are a must in your first vehicle as teen drivers are disproportionately more likely to have accidents than more experienced drivers. Some features to consider include airbags, anti-lock brakes, electronic stability control, traction control, forward collision, and side-crash prevention systems, and back-up cameras. While fast cars can be fun, newer drivers should avoid V-6 engines or sports cars as they work their way up to revving their engine. Search for the vehicle safety ratings from the National Highway Traffic Safety Administration (NHTSA). For a list of the safest cars for teens and more safety tips, visit Kelly Blue Book. 

New or pre-owned?

For your first car and all your future cars, pre-owned cars are a great option. Buying a pre-owned car has many benefits, including slower depreciation, lower insurance costs, and they are less expensive. While used vehicles are less expensive, that won’t matter if they require costly repairs. Be sure to research the vehicle’s history using Carfax and avoid any that have a history of accidents or damage and review the service history. Visit Texell.org for more car buying tools, including Texell’s Car Buying Service and CARFAX Vehicle History Report.

Get a loan or save and pay with cash?

When buying your first car or any car, it is always best to save and pay cash. Plus, you’ll get to feel the pride of making your first big purchase with your own hard-earned money, and you’ll save thousands in interest. Compare the extra expense of interest using a $10,000 auto loan at an average 12% interest rate¹ with that of a cash purchase.

If your parent or guardian has offered to share or match the amount of a car purchase, sit down together and crunch the numbers. For help to determine how much you can spend, read our article, How Much Car Can I Afford? Take into consideration other factors that add to your monthly auto expense, like the mileage, insurance, and maintenance. The make, model, and year of the vehicle can make a difference in the insurance costs. Learn more about how to calculate insurance costs in our article, My First Car: What is Car Insurance?

If paying cash isn’t an option and you must get a loan, as a teen, you won’t have the credit history required to be approved for an auto loan. Discuss with your parent or the adult who is helping you finance the vehicle your options. They’ll need to apply for the auto loan with the goal of adding you to it when you become an adult. Texell Credit Union has exceptional rates for new and pre-owned vehicles. Visit Texell.org/auto for details and to start your application. 

Test Drive & Be Patient

Once you know which vehicles fit your needs, head to the dealership to test drive. Be patient and try several before settling on the car of your dreams. If you’ve narrowed the list down to two or three, weigh the pros and cons of each to help decide. Maybe one is more affordable but doesn’t have the safety features that you require as a teenager? Even if you find one in your favorite color, test drive to make sure it’s easy to handle on the road. Pay attention to noises, how the car feels when getting up to highway speeds, steering, and if the controls are manageable. When you find the perfect car, keep your excitement contained so that you, and the adults helping you, can be confident with the last step—negotiating the price.

Inspect & Negotiate

If you’re buying a used vehicle, use the VIN number to check the car’s history and any recalls listed by the National Safety Council. You may also ask to take the vehicle to a trusted mechanic for an inspection before you buy the vehicle. With your research in hand, you’ll have a good sense of the vehicle’s value. The dealer will most likely negotiate the price, so stick to what you feel is fair, and be ready to walk if it’s not. Buying a car is a big purchase that should last several years, so approach it slowly and with caution—just like driving. 

If you need help with buying your first car, Texell’s loan experts are ready to answer your questions. Visit Texell.org or call or text 254.773.1604. Get ready for the next step in owning a car by purchasing car insurance. Read the next article in the series, My First Car: What is Car Insurance? Texell offers several types of insurance policies, including vehicle insurance. Visit Texell Insurance to learn more.

¹ Average auto loan rate from NerdWallet.com.

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