Children grow up far too quickly. One moment they can barely crawl, and the next moment they have passed their driver’s test! Rather than try to hold on to their childhood, help them prepare for adulthood in as many ways as you can. Helping them buy their own car, for example, is an excellent way that you can help your child become independent and responsible.
Why Your Child Should Buy Their OwnCar
There are many reasons why helping your child buy their own car, rather than allowing them to use your own, is a great idea. With that in mind, however, you don’t want to let them try to buy their first car on their own. You need to help guide them so that they choose a vehicle that has enough safety features, and is priced right so that they can stay safe on the roads. One of the key parts to buying their owncar include the fact that they will need a job to pay for it. Thisis another key step to becoming an independent, self-sufficient adult, and it can help give your child the leg-up they need in life.
Reasons why they should be the ones who buy the car include:
- Increased personal responsibility
- Increased financial responsibility
- Improved credit score for future purchases
How to Help Them Choose the Right Make and Model
To help them make a good decision, you will need to help guide them. It might be tempting for them to buy an old vehicle that they can purchase outright. Chances are, however, that a vehicle that cheap has many issues and safety defaults. A car that was top of the line twenty years ago will not hold up in terms ofsafety features today. Not to mention how much mileage a car like that would have. You want to help your child choose a make and model that is both safe and will last a long time. If they can drive that car for the next ten years or more, then they will have made a great investment.
Choosing the Right Loan for Them
To afford a car that is both dependable and full of safety features, you need to do two things. One, you need to save up for the down payment and two, you need to find a great loan. Some great car loan tips include saving up at least 20% of the down payment, getting pre-approved, and always negotiating before you settle on the final price. The less you have to pay overall, the better your loan and the further their savings will go. If you want to help them financially, a great idea is to halve the cost with them. Have your child save half of the down payment, and you pay the rest. Have them pay half of the monthly repayment cost, and then you pay the rest. Everything will have to be through their name so that they can build their credit score, but with you backing them you can offer both the lenders and your child the security they need.
When your child has their owncar that is in their name and that they are financially responsible for, they will be more careful drivers. They know the worth of the car and how much effort it takes to be able to afford it. This helps them drive safer and prepare for adulthood.
Disclosure: This is a collaborative post.
