10 Good Cheap First Cars For 17-Year Olds in 2022 (2023)

FAQs

How much should a 17 year old spend on their first car? ›

Just because it's their first car doesn't mean it needs to be their most expensive one, which is why many parents opt for used cars. Based on that approach, anywhere from $5,000 to $20,000 is generally recommended. For instance, Kelley Blue Book compiled a list of best cars for teens under $20,000.

It's generally suggested that parents cap their spending limit at around $10,000 for their teen's first vehicle, and most stick to used ones. If you stick to this guideline, then the most you need to save is around $2,000.

For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can't afford a car worth more than $10000, and it's risky to purchase a vehicle costing less than $5000 as it cannot be relied upon.

Legally, only someone over 18 can get a loan and, even if you are 18 or older, the lender will probably ask for your parent or another adult to co-sign. However, you'll need to make the payments every month, or it will have a negative impact on your credit—and on your co-signer's credit, too.

In the survey, 14 percent of millennials see 18 as the optimal age compared with 7 percent for consumers aged 38 and up. By region of the country, the Northeast is the least likely to consider 21 as the optimum age to first buy a car, at 41 percent. That compares with 54 percent for the rest of the country.

“A good rule to live by is to save 10 percent of what you earn, and have at least three months' worth of living expenses saved up in case of an emergency.” Once your teen has a steady job, help them set up a savings program so that at least 10 percent of earnings goes directly into their savings account.

The best way to save money is to buy used. A new car loses almost half its value in the first five years, so go for one that's a few years old yet still has contemporary safety features and many useful years ahead of it.

A car can absolutely be a need, not a want,” says Ron Lieber, New York Times columnist and author of “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money.” However, experts agree that a parent should not get a teenager a “dream car,” for both safety and financial reasons.

What percent of parents buy their kids cars? AutoTrader.com surveyed parents with children of driving age and found that while 14 percent said their parents had purchased their first car, 41 percent said they bought their child's first car for them.

What age are most car accidents? ›

Who is Most at Risk? The risk of motor vehicle crashes is higher among teens ages 16–19 than among any other age group. Teen drivers in this age group have a fatal crash rate almost three times as high as drivers ages 20 and older per mile driven.

Most cars with an engine bigger than 1.4 Litres should be struck off your list of cars due to incredibly high insurance costs for a first driver, especially if you are 17 or 18 and getting your first car.

How Much Do I Need for a Car Down Payment? In general, a good rule of thumb is to aim for 10% down for used cars and 20% for new vehicles. For example, if the new car you've settled on costs $25,000 and you want to make a 20% down payment, you'll need to save $5,000.

Save for a down payment

Aim to cover at least 20% of the purchase price, which might take some time. Being patient and saving up for a large down payment is likely worthwhile if you can delay getting a car until you have the funds. It will save you money overall and lower your monthly costs.

Calculate your take-home income. This is how much you earn after taxes. In general, experts recommend spending 10%–15% of your income on transportation, including car payment, insurance, and fuel. For example, if your take-home pay is $4,000 per month, then you should spend $400 to $600 on transportation.

Cars loose a lot of value over their first year and continue to depreciate drastically over the next two. So you could buy a three year old car, which will feel almost as good as new, at a much reduced price.

As most teens lack credit histories, they can have trouble arranging financing. Your bank, credit union or even insurer may be able to provide a loan, but you'll probably need someone, such as a parent, with an employment and credit history to cosign your loan. Even with financing, the biggest cost will be upfront.

It's a good idea to make a down payment of 10 to 20 percent. However, generally speaking, the more you can put down, the less interest you'll pay in the long run. The trick is to balance what you would like to pay with what you can reasonably afford.

Can a 17 year old buy a car without a cosigner? ›

Why You Have to Be 18 to Get a Car Loan. Seventeen-year-olds can't take out a car loan, or even become a cosigner or co-borrower on one.

The Start Personal Loan Requires a Parent or other co-signer if under 18 years old.

A first car is a great way to show your child that regardless of how much or how little the parents have in the bank, his or her dream car will come later in life, perhaps much later, but no matter what… if they earn it, they'll be much more proud of it and feel a true sense of accomplishment.

What's the Average Life of a Car? In the past, the average lifespan of a car was significantly lower than it is today. Now, you can expect a standard car to last around 12 years or about 200,000 miles. More advanced vehicles like electric cars can go even longer, up to 300,000 miles.

In the U.S., you can typically apply for your full driver's license between the ages of 16 and 18. What states can you drive at 14? You cannot get a full, legal driver's license at the age of 14 in any state. You can get a learner's permit at 14 in Alaska, Arkansas, Iowa, Kansas, North Dakota, and South Dakota.

Some 65% of the children surveyed said that they received pocket money, with children aged between 15-17 years receiving an average of Rs 350 per week and those between 12-15 years getting about Rs 200 per week.

One of the most common percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.

Budget. Multiple costs are often cheaper when you buy a used vehicle rather than a new one. Everything from the price of car insurance to dealer fees will be less expensive when you buy a used vehicle. Depending on the vehicle you choose, the purchase price will also typically be less for a used car.

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

One simple rule you could apply to your car purchase is spend no more than 30% of your annual income on the vehicle of your choosing. This allows your budget to be flexible enough to cover the additional costs of maintenance, insurance and other expenses.

What car can you legally drive at 16? ›

A light quadricycle is the only four-wheeled vehicle that you can drive legally on the road when under the age of 17.

Buying a Car Allows Kids To Save

Another pro of buying your child a car is “that it gives them the opportunity to save up for other expenses, including car care, insurance and gas. In addition, it's an excellent lesson in responsibility,” said Brad Cummins, financial expert and owner of Insurance Geek.

When the spark plug expands the mixture and pushes down on the piston, the piston pushes back up again and sends the mixture out of the cylinder and into the engine. This process creates energy, which the engine uses to power the car.

Age is also an important factor to consider when buying a used car. Just like people, cars get old and start to show signs of wear and tear. Older cars are prone to having more repairs and may not meet the standards of new cars. Also, the value of a car decreases as it gets older.

Who Gets Into More Car Accidents? Statistics show that males get into more accidents than women every year. Men cause about 6.1 million accidents per year and women cause 4.4 million accidents per year, according to the National Highway Safety Administration.

Research from the CDC points to a few key reasons teen drivers are likely to be involved in car accidents: Lack of experience. Teen drivers have triple the fatal crash risk of older drivers, in part because they do not have the skills to recognize and avoid road hazards.

Modern cars are safer than older ones, according to data from the National Highway Traffic Safety Administration (NHTSA). The federal agency found that seat belts, airbags, and crash avoidance technology significantly improve your chances of surviving a crash.

Younger drivers - and teenagers in particular - pay more for car insurance simply because they're statistically more likely to be involved in a road accident. To an insurer, less experience on the road means you're a higher-risk driver – so you'll be more expensive for insurers to cover.

Countries with the lowest driving ages (17 and below) are Australia, The Bahamas, Canada, Malaysia, New Zealand, the United Kingdom (mainland), United States, and Zimbabwe. In some jurisdictions in the United States and Canada, drivers can be as young as 14 (with parental supervision).

Auto insurance rates drop by 3.4% for every year your vehicle ages. An eight-year-old vehicle is approximately 25% cheaper to insure than is a brand new vehicle. For example, a brand new Honda Accord could cost $74 more per month to insure than an eight-year-old Honda Accord.

What are the top 5 safest cars? ›

All in all, the best age to buy a used car is around the 5-year mark, as this minimizes depreciation and maximises reliability for the price you'll pay, meaning you're less likely to have any problems or need to pay any more money for later on which is a common problem with really cheap or much older vehicles.

Car finance for 17 year olds

If you're 17 and you've passed your driving test, your next step is probably working out how to buy your first car. Unfortunately, car finance isn't an option for 17 year olds; you're not allowed to sign a credit agreement until the age of 18.

In retaining “like new” quality and inheriting a slower depreciation rate, the best used car age for buying is 2-3 years. In fact, Americans are saving up to $14,000 on a 3-year-old vehicle. For example, a car that may have cost you $30,000 when new would cost around $16,000 after just 3 years.

Reliability fades with age

Five-year-old cars record what is considered a major problem every three years, while 10-year-old cars are more likely to face a problem every 18 to 20 months. Once a car is 20 years old, replacement parts will become harder to find and likely much more expensive.

Borrow for whatever you need

If you're under 18 years old: We welcome you to apply for a Start Personal Loan, as long as you have a parent or other co-signer on your loan. Parents will have access to monitor and help manage their child's loan and make a payment through online and mobile banking.

Financing your first car is an attractive option because of the availability of low monthly payments for better models that would otherwise be out of your price range. With finance, you pay monthly for a car and will sometimes have the option to own once your contract is finished.

Remember, there's no set limit on the number of years for a used car loan, and in recent years terms have risen as high as 84 months.

How do I choose a car for the first-time? ›

Why Buy a One-Year-Old Car? When you buy a car that's only a year old, you let the car's first owner take the biggest depreciation hit. You get a close-to-new car at a fraction of the cost. This means you'll lose less money on the car overall when you go to sell it years down the road.

The average car gets in 10,000 to 12,000 miles per year, so used cars with an annual average lower than that can be considered as having good mileage. Simply divide the odometer number by the car's age in years to determine it's annual average.

However, once you turn 18, you can buy a car from a dealership – even if you don't have a credit history. You can either buy it using cash or get an auto loan with a parent as your co-signer.