Buying teenagers a car.

OneOfOne (Trevor) · #1 05-04-2007, 07:55 AM

Morning guys,

At the moment we are going through a fairly common stage in life where my wife's daughter turns 18 in June. As a result she would like a car for her birthday which has caused no end of arguments (haven't we all been there). Originally we were going to get her a car if she did well in year 12, but now she reckons she wants it before then. She wants to drive to school (1km) and wants to be able to drive her boyfriend to school, he is 17. I don't know how she can afford to run it as she earns about $60 per week and spends about $80. Originally we thought of putting in one third with her dad and herself, however, she says she can't afford to "put in" because she can't save any money.

So I would be interested in hearing the opinions of others and in particular those who have already been there.

So what do you think or reckon. I am sure others will be very interested in hearing from other people who have been there or are about to go there!

[1ponders] (Paul) · #2 05-04-2007, 08:12 AM

Well my parents bought me my first car, all of 30 years ago. Dontchajustluvabeetle

All of $350 it was and I loved that little car. But, I had to maintain it, fuel it, pay for rego and third party. And there was never to be more than 1 other person in the car with me at any time, until I got off my P plates (12 months) and I was 18. We can get our license at 17.

So if she can meet the costs, sure help out or buy one. You do know however that what she wants and what you can afford to buy or think is a good car are at opposite ends of the vehicular spectrum

Dujon · #3 05-04-2007, 10:02 AM

They want it, they buy it.

You can help - but only with a loan. She is now old enough to understand the meaning of money and the effort made to earn it. You should put her on a repayment schedule (no need to charge interest if you are well off enough to ignore it) and keep her to it. On top of repayments she will need to maintain the thing herself. Sit her down and explain in detail the costs of registration, insurance, CTP, petrol, servicing and repairs; tell her that if she damages the machine or if it breaks down then it will be up to her to pay any insurance excess and/or repair costs.

She just might think twice.

rogerg (Roger) · #4 05-04-2007, 10:22 AM

My parents had an old car that I was able to drive for the first copule of years of my license. Then a P plater was showing off to his mates, did a burnout around a corner and landed straight in my drivers door (not fun), that was the end of that car.

I then bought my own, using largely money that my parents had been putting in to an investment fund since I was young. It was my fund, I could choose to use it for a car or not.

I would go with the putting in a percentage of the money option. I think it's good to help but definitely not good to pay for it all. And I wouldn't be fussed about it being a loan, I think a grant is appropriate, just not the whole value. As for her not having enough money for it - it will probably help her realise about the whole earning & saving thing to be forced to save enough money to keep the car running. Sounds like it'll be a stretch though, have you got enough room in the driveway for it to be parked there 90% of the time??

Maybe put parking signs up, $1/hr

PS. I haven't been in the situation the other way around - on the side of the parent, being only 27 and not having any kids

ving (David) · #5 05-04-2007, 11:20 AM

beingthe owner of a teen that may or may not soon get thier licence i aminclined to say that if she wants a car then she can buy one herself. its a known fact that people of any age (but particularly teens) apreciate something all the more if its thier own hard earned that is paying for it, it gives them more of a sence of ownership. and hence they are also more likely to look after it better too...

matt · #6 05-04-2007, 11:27 AM

Quote:

Originally Posted by OneOfOne

Originally we thought of putting in one third with her dad and herself, however, she says she can't afford to "put in" because she can't save any money.

Hmmm. There's an alarm bell right there!

She says she "can't save any money." That will also translate to can't afford to run it, maintain it, keep it on the road, insure it etc etc

Suspect this car will end up being your financial cross to bare.

I agree with the comments which have been made by others here.

Sorry if it sounds a bit hard, but young people have to learn that ownership means exactly that.... ownership... including the bills.

OneOfOne (Trevor) · #7 05-04-2007, 01:21 PM

I personally don't have a problem helping out financially with a "grant" but not if they don't do their bit. Not having any genetic responsibility I guess gives me a different view to those that do.

At least I have enough room on the front yard grass to store the car while waiting for enough money to refill it again..

and see it as a learning exercise for her, but in the mean time you still have to work out how to finance it in the first place. After the first tank full, it will become much less of a problem.

Servicing costs were easily solved "I just won't service it". Insurance was also just as easy "I am not stupid enough to go out and drive into someone, I want to be insured if someone hits ME!".

EzyStyles (Eric) · #8 05-04-2007, 04:32 PM

no offense but i personally think you will spoil her by buying a car after year 12 since these days, it is not a great achievment finishing year 12. You can probably suggest an alternative such as buying her a car after graduating from uni/tafe. Teens need to learn how hard it is to earn money and that they need to save every cent they can get. It will be the easy way out for her to get you to buy her a car. If she is not working, maybe encourage her to find herself a part-time casual job and save that money for her car. my 2 cent.

sheeny (Al) · #9 05-04-2007, 04:54 PM

I voted "they want it, they buy it". I think that is important. By all means, you can help out with a loan, and advice to make sure she isn't ripped off, and finds a reliable car, and also with the financial advice to make sure she's not over committing... but it is an important rite of passage to adulthood - taking responsibility for your own car.

When I left school, I had an engineering cadetship with a major company, so I was to spend 6 months on work experience anywhere in Australia followed by 6 months study in Sydney every year (a sandwich course). A car was a must, but I didn't have one and I didn't have the cash to buy one... but I had an income, so I could afford a loan. A $1000 Leyland Marina coupe was the result... no end of trouble for 18 months before I traded it in on a motorbike!

But it was important to do that... I had problems, but they were my problems, and I had to deal with them.

By all means advise, guide, and help, but don't buy!

Al.

acropolite (Phil) · #10 05-04-2007, 05:03 PM

I'm with the "they want it they buy it" crew. Our daughter wanted a car as soon as as she was able to drive. She had a part time job for years before getting her licence and saved the for her car as soon as she had entered the full time workforce. I'm sure it helped develop both a work ethic and an appreciation of the value of money. We did have a second car which both kids were able to use to learn and get their licence in and use occasionally.

JimmyH155 · #11 05-04-2007, 05:16 PM

I have the perfect solution to stave off - for a little while--- my impending problems...
I have had a Volvo for 12 years and offered it to my son recently to learn to drive in, (it's a second car now) and subsequently use. "Do you seriously expect me to be seen driving a Volvo, Dad? I'm not interested!"
Problem solved

No car

No driving lessons

No worries

wavelandscott (Scott) · #12 05-04-2007, 05:56 PM

Maybe I'm old fashioned but...I reckon if they want it, they buy it...that is the way I was treated and intend to do the same for my kids...I also got to pay for petrol...but, my folks did "help" out with the insurance by getting it included on our farm insurance policy...

jjjnettie (Jeanette) · #13 05-04-2007, 06:15 PM

I voted "They pay an even share"
But that is only on the purchase price.
After that they are on their own.
She should also take a TAFE course on basic car maintenance. You shouldn't be allowed on the road if you cant change a tyre, replace a fanbelt, put in a new air/oil filter, etc etc.
Some car insurance companies will give your kids FREE defensive driving lessons as well.
My son's first car, that he bought off us, was a metallic purple suzuki. 800cc and 3 cylinders. IT took him from A to B, cheaply, reliably and within the speed limit, he couldn't hoon around in it if he wanted to.
Needless to say, he saved up his money very quickly so he could purchase his Subaru.

33South (Chris) · #14 05-04-2007, 06:26 PM

I had to vote "they want it, they buy" as that what happened. Although I did pay for driving lessons, and loaned my car when absolutely necessary.
Anyway by the time the were desparate they were working.

But Ive mellowed in my old age, if either needed help with a new car now Id probably pay the gap or least lend it interest free.

styleman333 · #15 06-04-2007, 08:07 AM

Definetly dont buy it for her. If she cant show the responsibility in doing the right thing by saving and throwing in then shes not responsible to own a car. You have done the right thing by offering to work on an agreement and she doesnt want to go that way . I got teenage girls too and i understand , lol least you know you got a normal one . Your gonna get hassled and hassled and nagged but until she can show some responsibilty then so be it . If she wants a car that bad she will save like hell for 6 months to "throw in" . Its a life skill you are teaching her.

Lol good luck

Dujon · #16 06-04-2007, 09:26 AM

Quote:

Originally Posted by OneOfOne

. . . Servicing costs were easily solved "I just won't service it". Insurance was also just as easy "I am not stupid enough to go out and drive into someone, I want to be insured if someone hits ME!".

Oh dear. There's a recipe for total financial disaster if ever I've seen one.

vash (Ashley) · #17 06-04-2007, 10:58 AM

My father bought my first car, but it was very cheap and was only ging to be used for getting to work so I could by my own car. I saved up my money and bought myself a nice 4x4. I Also had to pay for petrol insurance and servicing it, though I only serviced it once, and I had to replace the altenator. we had a large flood and the car got drowned, still kept going though.

And soon my father and I are going shares in a nice old classic car to work on. So we managed to do 3 of the options.

Astroman (Andrew Wall) · #18 06-04-2007, 11:05 AM

I am with you want it, you buy it, its the only way I was raised. Now it's "if you can sell something else you can buy it then sell something else and hide the money from the wife then you can buy it"

ving (David) · #19 08-04-2007, 10:14 AM

while i voted for "they want it they buy it" as i have already stated, a thought came to me... safety. would you have your soon/daughter driving around in a car that is unsafe because they cant afford anything else?

I havent changed my mind, but its just a thought.

Richard Lever · #20 08-04-2007, 10:45 AM

My vote was for approximate even shares for a couple of reasons;
1) As some others have said... SAFETY! I want some input, such as a Safety Check by a qualified mechanic, and, even if they can afford one, most teenagers are NOT ready for the WRX/M3/ZX etc

2) If you own some of the car, you can make sure it gets regular service & put your hand out when rego or insurance comes up