Young drivers involve a variety of expenses besides the vehicle itself. Here are examples of some of the expenses teen drivers will incur.
The cost of coverage will be based on the driver characteristics, the vehicle, the insurer and the insured’s eligible discounts. A safe driver course can often help reduce the cost of insurance. There are other discounts you may not have thought of such as a school grades discount or a device monitoring program. Consult with your auto insurance policy provider to discuss your options.
Aside from the exam to obtain a license, some states require participation in a course. According to CarsDirect.com, the cost of driver’s education can range between $30 and $180 for a classroom setting, $50 and $150 per session for road courses, and $200 and $800 for all-inclusive courses.
Cost of the Vehicle
Unless the purchaser can cover the entire cost of the vehicle at once, the owner will be committing an amount of their available funds each month. This would be true regardless of whether you are purchasing a new or used car.
Typically, leasing a vehicle is offered at a discount and a temporary alternative to purchasing a car. However, it is important to read the contract well and determine if the agreement is appropriate for you and your teen. Each leasing company will set different conditions and restrictions that need to be met to remain compliant.
Maintenance and Repairs
If you buy a new car, chances are it comes with a factory warranty. Some dealerships offer free maintenance as an incentive. Typically, this assistance can delay expenses for the owner. Purchasing a used car offers some initial monetary relief. However, it is important to research the vehicle as there is less often a warranty provided without a separate expense.
The discussion should be had on who will cover these expenses. This can be a wonderful time to sit down with your teen and discuss making a budget. The decision will ultimately remain with the rationale for the car. It will be based on how responsible the driver is at the time, the driving environment, and purpose for the vehicle. Consult with your financial advisor about some ideas on how to start the conversation.
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