Teaching Your Teenager How to Buy a Car

Being the father of two sons, I had to teach them about buying a car. I wanted to give them an appreciation for what they had to look forward to when they went car shopping. I thought the best way to do it was to educate them in a fantasy way. No, it is not like fantasy football but, in some ways it educates them to the use of numbers.

I have a good friend that is a car dealer, so he also helped me with this educational project. I first had each son go out and purchase a new newspaper. The one that had all the automobile adds in them.

Next, I had them go through the adds and pick out whatever car they wanted. It could be the most elaborate car or it could be a good used car. The decision was theirs.

Once they had selected the car that they wanted, I had each son contact an insurance company with their vitals to get an insurance quote for them and their vehicle. They asked if they could have this set up on a monthly or quarterly billing. They recorded the number of the amount that it would cost monthly.

I then had them get the cost of their vehicle. They had to find out things like mileage, how much money down was needed, who did their financing, and what was the interest rate on a car loan. Each son could ask whatever questions they wanted, just like a serious buyer would. Once again, they recorded all their information.

I then had my automobile salesman friend sit sown with each son separately. I sat in just to observe. I offered no advice. I just wanted to watch. After my friend got all the information, he asked several questions. Question number one. What is the Vin number on the vehicle? Neither son knew. So he explained the importance of checking out the history of the vehicle through the Vin number. Question number two. What is the Sales tax on the vehicle? They didn't know this either. It was 7 percent.. How much was the liscense plate fee? They both knew this was $75. what was the administrative costs? This is the charge on all the paperwork. They didn't know. What shape was the vehicle in? How was the tires, the mileage? Did you test drive it? For each questions, he gave an answer to them.

He then took a calculator and showed them what the total cost would be with all the taxes, charges, and financing. He gave them a break and set up the loan over 60 months (five years.) Once he figured their monthly payment, he then added the monthly cost of the insurance. This way, each boy knew what they would have to pay accordingly on the first of the month.

He wasn't done. He asked if they knew what the gas mileage was on the vehicle. He then figured out roughly how far that they would be driving. He didn't figure in recreational driving only to school and their jobs.

Once he had their mileage, he was able to determine their gasoline expenses for the month. This was a real eye opener for both of my sons.

Needless to say , both of them were very depressed. To have their own vehicle would be expensive. He then went about educating them on the art of shopping and looking for good deals. He explained how to use the Vin number when negotiating on a cost for a vehicle. He also convinced them to downsize their idea on buying a car. He went over the value of good gas mileage. He also explained the value of paying cash over borrowing.

Both sons thanked him when he left. We then sat down and being the good father that I am, had a good conversation about responsibilities when purchasing a vehicle. Although I wouldn't buy them the vehicle, I did tell them that I would assist each when they were ready.

Another good thing, that came out of this fantasy buy, was the use of math and a calculator. Many times, young people learn the hard way without any practice. I felt that as their father, I had helped them through this process.