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Home | Vehicles | Trucks, Suvs I have gone through the same with a couple of my kids now and having been in the car business for a number of years, I can assure you that there are some very real reality checks that need to happen as you discuss this subject with your child. As is the case with most all first time car buyers, the focus of their attention (beyond the car of their dreams) is the price of the car itself. At this point, not a bad thing, at least their thinking in some sort of financial terms. So, follow up with this thinking and discuss with them just what their plan is when it comes to paying for the car. I should pause right here and mention that if you are the type of parent with the means and desire to take care of this financial responsibility for your child then... well you probably haven't read this far anyway. When we talk about 'paying for the car', we want to darn certain that the young car owner to be has a very firm grasp on the fact that even if they pay cash for the car; they never really stop 'paying' for the car. As parents, we know that a vehicle can at times be very hard on even an adult sized budget. So, you really want to be very certain your child understands those additional money grabbers such as maintenance, gas, tires, batteries, and of course that little monthly expense know as insurance. A very good rule of thumb for young people dreaming of buying their own car is that they at least can put 20% cash down on the negotiated price of the car. In addition, do not drive off with car that you cannot have paid off in a maximum of 48 months. The vital aspect of the no more than 48 months and at least 20% down will help ensure that your son or daughter isn't financially upside down in their car (they own more than it's worth) for the life of their loan. No complaining or crying... make sure they do this. A vehicle is not an investment... it is a depreciating asset. So, your young person needs to be sure that they fully understand the magnitude of this monthly expense. And that continually paying for a car that isn't even worth market wise what you owe, is a very bad strategy. I've seen time and time again people that disregard these simple rules find themselves in an uncomfortable financial position when it comes time to trade. So stand your ground on this with your kids. As you've no doubt been able to determine, this article deals with the premise that the fist time car buyer's car is going to be of the used variety. If you and your first time buyer are looking on the new car side of the lot then there are a whole bunch of other parameters and rules that you must follow... or risk literally spending thousands of dollars too much. If it is indeed a new car purchase, you're still in the right place. That is if you visit my website. Once there you'll find all the tips, tools, and personal advice that'll you'll need to ensure that your car purchase is a good one for you. Article Source: http://www.articlewheel.com
For more valuable information on car buying, be sure to visit www.acarbuyersguide.com where you'll find information on topics such as getting the best car deals, best time to buy, & more.
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