If you have a teenager who will soon be old enough to hit the road on his or her own, you have likely considered whether or not to buy a vehicle. While having the means to buy your teen a car is a wonderful thing, it is vital to understand the true cost of car ownership before you do so.

In addition to the sticker price and maintenance costs, there are also driving courses and registration and insurance fees to consider. Read on to learn more about how to determine the true cost involved with a car purchase.

A Financial Guide to Your Teen’s First Car

First, understand the upfront costs. The upfront costs of buying a vehicle are generally the largest, and also the most predictable. This consists of the cost of the car, the cost of registering the vehicle and any other taxes and fees associated with transferring the car to your (or your teen’s) name. If you are buying the car from a dealership, they should be able to lay out all of these expenses for you easily. Buying from an independent seller can be a great way to save, but you may want to do your research to determine the registration fees and other costs for yourself so you can understand the true purchase price.

Second, shop for insurance. Insurance for new drivers is one of the most expensive ongoing costs of owning a car. Adding a teen to your policy can increase it by nearly 80% on average, as he or she has no driving history for the insurance company to evaluate. Fortunately, things like higher deductibles, a history of driving courses and good grades can lower your monthly premiums quite a bit.

Third, consider the maintenance costs. Regular maintenance is key for keeping any car on the road, and whether you chose a new or used model for your teen, it is important to keep up with things like oil changes, tire rotations and other routine tasks to keep things in good shape. Parts and maintenance costs can vary with different makes and models, but a trusted, local mechanic can help you weigh your options and determine what your costs will look like throughout the years.

Are you looking for a trusted mechanic to take care of your teen’s new car? We’re here to help! From free courtesy inspections to extensive repairs, we can do everything you need to stay on the road. Contact us today to learn more.