| An exciting time for young adults and a time of | | | | Let's get back to the financing angle for the point |
| much conversation with their parents is the time | | | | of our discussion. You'll want to insist that your |
| in their life that they approach the driving age and | | | | first time young adult car buyer be in a |
| thoughts turn to owning their very own car. | | | | comfortable position to put at least 20% down of |
| Needless to say this brings about a whole bunch | | | | the purchase price. Also, don't allow them to |
| of conversation between the young first time | | | | consider financing beyond the 48 month mark. In |
| buyer and their parents. | | | | fact, insist on this. |
| If you're a parent about to engage in this type of | | | | The vital aspect of the no more than 48 months |
| subject matter with your son or daughter (As I | | | | and at least 20% down will help ensure that your |
| have now for a couple kids), there are some | | | | son or daughter isn't financially upside down in |
| very real reality checks you need to bring very | | | | their car (they own more than it's worth) for the |
| much to light with your child. | | | | life of their loan. No complaining or crying... make |
| As is the case with most all first time car buyers, | | | | sure they do this. |
| the focus of their attention (beyond the car of | | | | A vehicle is not an investment... it is a depreciating |
| their dreams) is the price of the car itself. At this | | | | asset. So, your young person needs to be sure |
| point, not a bad thing, at least their thinking in | | | | that they fully understand the magnitude of this |
| some sort of financial terms. So, follow up with | | | | monthly expense. And that continually paying for |
| this thinking and discuss with them just what their | | | | a car that isn't even worth market wise what |
| plan is when it comes to paying for the car. I | | | | you owe, is a very bad strategy. I've seen time |
| should pause right here and mention that if you | | | | and time again people that disregard these simple |
| are the type of parent with the means and desire | | | | rules find themselves in an uncomfortable financial |
| to take care of this financial responsibility for your | | | | position when it comes time to trade. So stand |
| child then... well you probably haven't read this far | | | | your ground on this with your kids. |
| anyway. | | | | The assumption that this article is based upon is |
| One detail that you want to make sure that you | | | | that your first time buyer is looking at purchasing |
| bring home to the thought process of car buying | | | | a used car since this is by far the majority of the |
| for your son or daughter is that as long as they | | | | cases. But, if you are looking at the possibility of a |
| own the car; they are going to be paying for the | | | | new car for the first time car buyer then I must |
| car... even if they pay cash. Cars are an expense... | | | | tell you that there are a whole other set of rules |
| they are a monthly hit to everyone's budget... so | | | | that apply that will keep you from spending way |
| they'll never really stop paying for the car... and | | | | to much on a new car. |
| boy don't we know this! | | | | If it is indeed a new car purchase, you're still in |
| Get beyond the price of the car in your discussion | | | | the right place. That is if you visit my website. |
| of the financing. Be sure to make sure they and | | | | Once there you'll find all the tips, tools, and |
| their budget fully understand such items as | | | | personal advice that'll you'll need to ensure that |
| insurance, gas, maintenance... and those times | | | | your car purchase is a good one for you. |
| when things break that aren't planned for. | | | | |