How to Pay for Good Cars for Teenagers


Millennials are already showing great responsibility over their life. It won’t be surprising to see them drive their own cars which they have paid for. According to a study, generation Y is better at saving and negotiating as compared to their parents. This fact should be able to help them score a great car deal, given that they know what to look for and how to pay for their choices. With the help of the internet, it won’t be long until research pays off and a teen could already make use of his driver’s license.

Learning how to drive is relatively easier than purchasing your first car. Teenagers who are also struggling to pay their student loans would always think that getting a car is impractical, especially when they don’t have a stable job yet. However, owning a car is better than waiting for your parents to pass down their clunky old auto. If you have great budgeting skills and decent-paying part-time work, you would be able to drive a new or used car soon.

There are different ways to pay for good cars for teenagers. Each option might be easier to pursue, depending on your current financial status. Your parents might also show support if you have the right reasons to justify car ownership. Here are some possibilities to consider:

Pay with Cash

There’s nothing more satisfying than to pay with cash. If you have generous parents, you might be able to pay your car in installments with their help. The recommended route is to take advantage of a used car that is no more than 10 years of age. Remember that the depreciation of a new car starts at its 5th year and further depreciates after its 10th year. Not only could you use half of its life yet, but your payments are reduced significantly. If you already saved enough, make sure to buy a new car to take advantage of improved safety features and a longer auto lifespan.

Get a Car on Lease

Borrowing a car is already possible in some countries. If you are not ready to commit to car ownership, you can still enjoy driving a private set of wheels by getting a car on lease. You would only pay for a specific amount of time and you get to choose among a wide range of good cars for teens. This is a great opportunity to try out cars and see what works best for your driving style and mileage needs.

Apply for a Car Loan

Financing good cars for teenagers is possible with a car loan. It might be a challenge to convince lenders if you haven’t built a good credit score yet. However, you can ask help for your parents to fulfill some of the requirements, such as a steady employment history, five- figure bank accounts and clean credit history. Remember to seek a lower interest rate and shorter loan periods to reduce finance charges over time.

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