Parents. When buying a vehicle for your first time driver, keep in mind that this is their first vehicle. Insurance carriers know there is a high chance of a wreck or crash. The statistics prove it. Therefore, their insurance is sky high. Why not take that knowledge and realize that it would be a good idea to buy a safe, simple, reliable vehicle paid for in cash. A rule of thumb is to buy something 1/3 of what you can afford. So if you are thinking of spending $15,000 just spend around $5,000 cash. Cut out the interest, the high insurance and expense. Instead invest that extra $10,000. Provide a reward when they graduate from high school or college, with a newer car at that time. Let them get that driving experience, and if there is a wreck, you have the money to replace it. This is good financial sense if you can do it?
