Best Cars for Teens - Best First Car

Good Cars for Teenagers - Safest Cars for Teens and Young Drivers

Is there a perfect first car for teens? 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 of first cars from both points of view.

What Teens Want
Most teenagers place considerable importance on a car's style (sporty), appearance (cool), performance (fast), size (room for friends), and accessories (customization). Girls like "cute" cars and place less importance on performance than boys..

An automobile is a projection of a teen's personality, social status, sense of freedom, and desire for peer approval — as well as possibly serving a practical need for getting back and forth to school or 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 the same factors as their parents.

Cost is a Factor
The first issue that most young drivers and their parents usually struggle with when deciding on a first car is that of cost, which typically leads to the issue of used-versus-new.

An older car is generally going to cost less than a brand new model. However, older used cars will generally be less reliable, may develop unexpected repair expenses, have fewer safety features, and not be as attractive as a newer model. On the other hand, insurance cost and taxes can be less. Used cars are generally sold "as-is" without warranties.

A brand new car can be more expensive — although not necessarily so (see below) — but will have the latest features and safety equipment, be under manufacturer's warranty for 3-5 years, be protected by lemon laws, and will have new-car reliability — and a new-car smell.

Brand New Cars for Cheap - Last Year's Left Over Models
Last year's leftover new cars currently have very attractive incentives that often makes it possible to buy a brand new car for less than a used model of the same car. These are still brand new cars that have never been titled and never owned by anyone, which means they come with full warranty and lemon law protection.

Here's how it works— request free dealer price quotes on left over car models that dealers still have too many of. They desperately need to get rid of them and are willing to give large discounts to make them attractive to you. Manufacturers offer large incentives in the form of rebates and low-interest loans on these vehicles.

You can get free price quotes on any new car from the following sources: Edmunds, CarsDirect, and Yahoo! Autos . The quotes you receive will automatically include any factory rebates and dealer discounts.

Be aware that when you fill out the form specifying a make and model, in most cases you will not be asked about which year model you are interested in. If you are interested in last year's model, you'll have to specify that when you actually talk to the responding dealers.

Best First 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 improved 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.

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Although most of the following recommendations are for smaller, less expensive vehicles, many teenagers prefer to drive larger vehicles such as SUVs and trucks. However, we don't recommend large SUVs for teens due to the higher skill level and experience 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 first-car 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 - 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 $15,570 for the xB, $14,650 for the xD, and $16,000 for the tC. The economical xA model is no longer made, but is available as a used car.

Honda Fit - This small 4-door hatchback is a winning combination of Honda reliability, comfort, interior space, features, and safety equipment — and a whopping 34 miles per gallon of gas on the highway. It's a fun car that also will haul a teenager's stuff — and lots of it. It is also safe and relatively cheap to insure and maintain.

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, one the best-selling cars 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. Ford's reliability has improved dramatically in the last few years. You can't go wrong with this nice little car.

Mazda3 - This vehicle 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.

When Cost is Not a Big Factor

Some teens are fortune enough to have the money to consider luxury or near-luxury used car models for a first car. Some of our recommendations for cars in this category are the following:

BMW 3-Series - This is one of the most popular of all sporty luxury cars, for a good reason. It's fun to drive, is a great performer, and fuel economy is good — and it looks good, as a "bimmer" should. It's available as a coupe, sedan, or a convertible. Used models are available for good prices.

Mercedes C-Class - This is a popular small sports sedan with young people who like a car that's fun to drive and exudes luxury and class. It's comfortable, roomy, and handles well on the street or highway. It also enjoys a good safety rating and is relatively economical to own.

Acura TL - This car is consistently rated very high as having the best blend of all characteristics that one would want in a car. It mixes luxury features with comfort, performance, handling, and sportiness. It's one of the most reliable models on the road.

Audi A4 - This vehicle is available as a sedan and convertible. It is luxurious and stylish with excellent driving characteristics. A wide range of features, options, and transmission choices are available. Crash-test results are impressive. Reliability is average.

Lexus IS - It's a Lexus with all the quality and luxury that Lexus offers, but it's not the Lexus that grandfather drives. It is a small safe sports sedan that has the performance, looks, and comfort that young people enjoy. A high-performance V8 version is available but watch out for high insurance rates.

Important Safety Feature for Teen Cars
Seat belts and air bags are common in all modern cars, and are important safety features. However, these features only help when an accident occurs. It's better to avoid accidents altogether.

A newer but less common feature, electronic stability control (ESC), helps prevent accidents and is expected to significantly reduce highway deaths. It particularly helps teens, who are understandably inexperienced in handling emergency maneuvers. Smart teens and parents will look for cars with an ESC system. Car makers use different names for this system. See this article on Wikipedia for a more detailed description of ESC and a list of manufacturers' names for it.

Where to Find Good Used Cars Cheap
Teens often can only afford inexpensive ("cheap") cars due to limited funds. See How to Find Cheap Cars for tips on where to find affordable used cars. Some of the sources are consignment lots, auctions, and online car sale sites.

An excellent source of used cars online is UsedCars.com a well-respected used car buying service that has already worked out discounted prices with dealers across the country. You can search their listings by price and area code, as well as make, model, mileage, and other criteria. Prices are already discounted but you can probably do better with a little haggling.

New Cars Can be Bargains in Tough Economy
With the depressed economy comes great prices and deals on brand new cars. In some cases, manufacturers are offering rebates, discounts, and other incentives that make certain new-car models cheaper than similar used cars. If you are considering the purchase of a relatively new used car because you think the cost will be lower, do yourself a favor and check new-car prices before making a decision.

Online pricing services such as Yahoo! Autos makes it easy to get pre-discounted free price quotes from dealers in your area. If you get multiple quotes, you can compare and select the best deal.

Also check dealer prices at Edmunds.com.

What to Watch For in a Used Car
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. An inspection costs about $75-$100 but can prevent a multi-thousand dollar mistake.

Also get an AutoCheck® Vehicle History Report to avoid buying a car that has been wrecked, flooded, or salvaged in the past. The report costs about $15.00 and is an excellent investment when buying a used car.

Consider buying a certified used car, which offers some protection against surprise problems, at a somewhat higher cost. These are cars backed by a full inspection and warranty from the car manufacturer.

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. However, a car's actual condition, as determined by a mechanic's inspection, is more important than mileage numbers. Some cars with high mileage can be in great condition — and be great bargains.

Teens and Car Financing
Let's say it right up front — car leasing and long-term car loans are not good ideas for teenagers for a first car. 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 a negative loan or lease balance can be troublesome and costly.

Many teens make the mistake of taking dealers' advice regarding financing and trade-in situations. For example, if the teen has a trade-in and is still paying on a loan, there's a good chance the loan is "upside down" which means the loan balance is more than the car is worth. A dealer will offer to "help" by rolling the negative loan balance into a new vehicle loan, instantly creating an even worse upside down situation — 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 loan defaults and credit problems that will haunt them for years to come.

See the First Car Guide web site for much more information and advice on teenagers, first cars, and automobile financing. The information on this web site is essential to teens buying a car for the first time. It covers a wide range of topics from picking the right car to finding insurance.

Stay Away from Problem Financing
Teens often have limited fianances and are desperate to find a way to buy and finance a car.

The most common method for teens under the age of 18 to get a car is to have their parents buy it for them, possibly with an informal family loan arrangement. The car must be in the parents' name, as must be registration, title, tags, and insurance. When the child becomes 18, the parents can "sell" the car to him/her to change ownership. If financing is involved, the teen could get a conventional car loan from a bank or credit union, although without a credit history, parents would have to co-sign. It's a great way for young adults to begin building credit for themselves.

For those 18 years old and over, it is common for parents to co-sign for the young buyer on a conventional auto loan, assuming the teen has an income sufficient to repay the loan. Even though a parent co-signs, the car and loan are completely in the teen's name. See, Do I Need a Co-Signer?

Unless it's the only option open to you, try to avoid "buy-here-pay-here" (BHPH) car dealers, who charge high interest rates and are very intolerant of late or missed payments. Much of their business is selling, repossessing, and reselling the same cars. See, Should I Buy from a Buy-Here-Pay-Here Dealer?

Avoid extremely long-term loans that require little or no down payment. Even though lower payments in long term 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" also 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. Without GAP insurance, the loan balance is the responsibility of the borrower, which surprises unfortunate people every day.

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 don't reveal this fact.

Inexperience is the worst enemy of first car buyers. It is easy to make mistakes and difficult to fix them. That is why it is so important for young car buyers to educate themselves, with web sites such as FirstCarGuide.com, before taking the first big step.

Teens and Credit - Bad Credit or No 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.

Getting approved 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. The recent downturn in the nation's economy has created tighter credit, making it much more important to have a good credit score than ever before.

Where to get Financing
Finding a source for loans is always a problem for new teen drivers. up2drive.com is a well-respected car loan company that offers loans to people who have limited or poor credit. This company's rates for young drivers are some of the best.

Teenagerss often get started in car financing by having a family member co-sign for them. This is the best way to get off to a good start and 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. Such problems can cause financing difficulties for at least seven years into the future.

Calculate Loan Costs
To help decide on a price range for a new or used car, it's best to use a new-car loan calculator or used-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.

Teens often don't understand the basics of automobile financing and make large mistakes that are impossible to correct later. See, How Are Car Payments Calculated?

Other Costs of Car Ownership
A monthly car loan payment is not the only cost associated with car ownership. Teens should understand that there are other costs as well. There are insurance premiums (the largest cost after loan payments), annual property taxes, tag fees, maintenance (oil, tires, filters, etc.), fuel, road tolls, parking fees, and repairs. These costs can easily exceed monthly loan payment costs.

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Teens and Auto Insurance
Car insurance for teenage drivers is very expensive because teens represent a high risk 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 for a teenager is even more expensive.

Therefore it is important to shop for the best rates while still getting coverage that is needed or legally required. Insurance rates vary widely between insurance companies.

Many teens attempt to cut insurance expenses by buying only minimum state-required liability coverage, which normally means low limits. This may not be wise, given the risk of being responsible for very expensive medical and property damage in an at-fault accident. Policyholders can easily become subjects of lawsuits to recover expenses beyond those covered by minimum insurance. Most state auto insurance minimums are outdated and much too low.

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. For example, some companies discount for good grades and driver's education courses, and others do not.

Compare rate quotes from multiple auto insurance companies from online services such as NetQuote.com . The quotes are free and fast. This is the only way to know for sure what you'll have to pay. It's always best to get multiple quotes for comparison and best selection. NetQuote.com is the largest and oldest of such companies and works with over 100 different insurers to get the right insurance at the lowest rates for it's customers.

Esurance.com is another car insurance broker who can get you fast rate quotes from multiple insurance providers. Since it's free, it's to your benefit to get as many quotes as possible.

See First Car Guide for additional information and advice for new teen drivers choosing a first car and learning about the fundamentals of automobile buying, financing, and ownership responsibilities. It's a great resource that all teens should read.

Also see Used Car Advisor for important tips on buying used cars.

For more, see LeaseGuide.com