3 Ways to Help Your Teen Buy a Car
Many teens are brimming with excitement about the day they turn 16 and can finally get their license and start asserting their independence by driving themselves wherever they need to go. Implicit in this view of the future is having a car to drive – and many look to their parents to buy them their first car.
Many parents have other ideas. Buying a new car for a teenager may not be in the budget for many parents, who may already be paying off two cars of their own. Others may simply want their teens to take on the responsibility themselves so that they can learn financial management. Unfortunately, most teens can’t get approved for traditional financing.
Whatever your reasons, you can still help your teen buy a new or used car using these simple strategies:
Go to a Buy Here Pay Here Dealership
Most teens can’t get approved for a traditional car loan because they don’t have any credit history. Fortunately, Buy Here Pay Here in Rhode Island offers financing for those who have no credit or poor credit. Most teens can qualify for financing at these dealerships. In addition, these lots typically have a wide selection of quality used cars, which are more appropriate for teens still mastering their driving skills and still on a limited budget.
Offer a Down Payment
Though you may not want to buy the car for your teen, you may be willing to help out toward the purchase. By offering your teen a down payment, you can help cut down the costs of buying a used car outright or can help your teen get approved for financing.
The down payment may show dealers that your teen is less of a risk for financing. It can also help to lower his payments and interest rates.
Co-Sign on a Loan
If your teen can’t find the car he needs at a Buy Here Pay Here dealership, he may still be able to get financing from a traditional lender if you offer to co-sign on the loan. Of course, you’ll be liable if your teen defaults, so you should think carefully about taking this step. If you think your teen is responsible enough to take care of the loan but just needs a little help to get it, go ahead and co-sign.
Buying your first car is a rite of passage that you will always remember. You don’t have to be responsible for buying your teen’s first car for him. By using these strategies, you can help enable your teen to buy the car himself, teaching him valuable lessons and getting yourself off the hook for the bill.