Buying your first car: What every teen should know

Whether you just got your license or need a ride for an after-school job, consider these common costs before buying your first car

Buying your first car is an exciting milestone. It’s also a big financial decision—and a chance to gain some real-life money skills. Follow these tips to find your first set of wheels—and to understand all the costs and considerations.

Now for the fun part. Start researching online to see what kind of vehicle you can get for your budget.

As a new driver, you’ll have to consider car safety and reliability. As a general rule, bigger cars are often safer than smaller ones. A midsize sedan might withstand a crash better than a compact vehicle, and its low center of gravity generally makes it less likely to roll over. Also, look for cars that don’t highlight horsepower. Cars with smaller, more practical engines and drive trains (and hybrid or electric cars, too) can encourage safer driving and also save you money on insurance and fuel.

You’ll also need to make certain trade-offs to find the right combination of features at the right price. One obvious option to consider: Will you buy new or used? While new cars are more expensive, of course, they may offer safety features that aren’t available in older vehicles, but are especially valuable to new drivers, from backup cameras to driver-assist technologies such as automatic braking. You can also consider a certified pre-owned vehicle. It may cost more than other used vehicles but may come with a limited warranty and, potentially, lower insurance costs.