Shopping for My Daughters First Car

[chapstic2001]

Here we go. My daughter is going to be able to get her license next month and we are currently a two driver two car household. Her getting her license means we need to have a 3rd vehicle to accommodate our driving habits.

I have put our budget at $20k. We can pay cash, but I am still thinking about taking a loan against it. Penfed is about 4.25%. However, when I put in the VIN for a few cars I have found, the difference between the price of the car and what Penfed is offering is substantially different. For example, $20k car is good for a $15k loan and a $15k car is good for just above $10k. I know the market has been upside down and a sellers market, but damn. Sure, I can put some of my own money at it, but then I feel silly for 'over paying' for the car. I guess [I know] I have never financed the full value of a vehicle before, so that put me on my heels.

Also, my plan was to get the vehicle from CarMax for their MaxCare warranty which I have good experience with it. I just got my 540xi back from BMW, $7k worth of work, paid $300 deductible and $300 elective work was a steal.

Send thoughts and prayers. Back to my tequila. Wish me luck.

[LWJ]

I did this a while back. First consideration is safety. New drivers get in accidents.

I did exhaustive research and bought a very safe car.

It felt good.

Good luck!

[pwd72s]

Yeah...good luck.

[wilnj]

I'm chiming in but probably not any help.

My oldest took my 2013 Buick, drove it for 9 months and then totaled it when she completely misjudged an exit ramp. She wasn't injured and the used car market has done some crazy stuff to the valuations and had the same happened a year or 2 earlier, they likely would have repaired it. She insisted on paying for the replacement herself and bought a 2012 Ford Focus that needed a new transmission just 3 months later.

My middle was driving my 2011 Jeep Wrangler. It was purposefully selected because it was the 3.8L mini van engine that is extremely underpowered to drive a body on frame 4WD with 2 solid axles. Speeding ticket 3 weeks into having her license.

So, good luck is the best I could offer except to say that the LTV you're seeing are likely a result of lenders thinking that the balloon surounding the used car market will burst soon and they don't want to be left holding the bag for a $15k loan on an $11k car.

[KFC911]

I'll chime in too....

I'd probably go with Don Julio Reposado

[Alan A]

She will crash it.
Buy a 5k Subaru until she’s had a couple of years practice.

[Bill Douglas]

Originally Posted by Alan A

She will crash it.
Buy a 5k Subaru until she’s had a couple of years practice.

Yep.

Either that or a Corolla Hatch if she promises not to crash it.

I love Corollas for their build quality and reliability.

[Racerbvd]

Get her a 914, take her to DEs so she can learn to drive, and if she is short, bolt the seat in place (boyfriends can't drive her Porsche if they can't fit in) and no backseat.

[wilnj]

Originally Posted by Racerbvd

and no backseat.

I always thought a regular cab pickup was good for this except for the whole bed behind the cab thing.


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[Alan A]

Originally Posted by Racerbvd

Get her a 914, take her to DEs so she can learn to drive, and if she is short, bolt the seat in place (boyfriends can't drive her Porsche if they can't fit in) and no backseat.

My kid wants a 944 - he’s 15 and will be eligible for a learners permit in a few months.
I’ve half a mind to buy one for him, insure it liability only and tell him if he wrecks it he pays for the fix.

[chapstic2001]

We are looking at something newer because of nanny's, reverse cameras, potentially lane change warnings and parking sensors. To reduce the risks. Plus, insurance can be higher on older cars since they tend to lack the afore mentioned things.

She is also is aware she is going to get a dashcam. Mostly for her protection in the case of an accident. So she does not get defaultly blamed in a fender bender.

@KC.......had [having] some Contigo Blanco.

[Rusty Heap]

good gawd loosen the apron springs.

My first car at 16 was a VW bug.


now you "need" dash nanny cams, lane assist, parking assist, automatic condom dispenser............


coddle the young, but when they grow set them free.

[HardDrive]

Find a higher mileage, well cared for Toyota product. 151k on our Lexus RX 330, still runs like a clock. He boyfriend has a high mileage Rav 4, still runs well.

[chapstic2001]

Bah-humbug.

Should I remove the airbags and ABS too? Perhaps remove the EFI and put in a carburetor? Kidding aside, these are the new norm for cars. Why take them away if it makes them safer?

BTW, what do you have against dash cams? If she is in an accident she didn't cause and a more seasoned driver tried to blame her, I would want to be able to make sure she is not victim of insurance fraud.

Originally Posted by Rusty Heap

good gawd loosen the apron springs.

My first car at 16 was a VW bug.


now you "need" dash nanny cams, lane assist, parking assist, automatic condom dispenser............


coddle the young, but when they grow set them free.

[RNajarian]

Guys two words. . .

Air Bags.

Old cars are fun but a new driver needs every safety feature available. A diesel Mercedes circa 2005 seems like a good first car. Not going to race it, built like a tank and has modern safety features (ABS, airbags, etc. . . )

[stomachmonkey]

Find an older Mazda 3 like in the 06'-09' range.

Reliable car with good safety scores and can be easily found with a manual transmission. Everyone should know how to drive a manual.

Easy to drive with enough power to get out of it's own way but not so much where they can get into too much trouble with it.

Both my kids got absolute beaters for their 1st cars and got newer nicer reliable $20k cars when off to college.

[Alan A]

Or a miata. Same idea.

[Norm K]

Originally Posted by HardDrive

Find a higher mileage, well cared for Toyota product. 151k on our Lexus RX 330, still runs like a clock. He boyfriend has a high mileage Rav 4, still runs well.

An older RX would be a fine choice.

They're extremely comfortable and quiet, have a good array of airbags throughout and offer as close to bullet-proof reliability as you're going to find in a dozen-or-so year old car with some miles on it. Plus, the styling has aged very well.

Whatever you decide on, if she, as my one of my kids did, begins to complain about the choice you made on her behalf, assure that her she has a choice. Ya, walking might take a bit longer, but it's a choice.

_

[Steve Carlton]

I'd look for a combination of safety and reliability. The best combinations are out of budget. How about a sturdy Japanese car, like a Toyota Camry or Avalon, or a Honda Accord? I like Subarus and Mazdas, too, but I'm not sure they're as reliable. Are Subarus really safer like they advertise? I don't know.

Does she need any kind of body style? Would a hybrid, PHEV, or BEV make sense? I still miss the Chevy Volt I used to have. I think they were overbuilt out of fear of being a mechanical failure. When you're running on full electric, you're getting the equivalent of what, 100 mpg? Maybe the availability of charging the car for the next several years is unpredictable.

That PenFed rate seems low- most CU rates around here are 6-7% for new or late models. Sometimes there's special rates for low LTVs and the best rates are typically for 5 years. If you can pay $20k cash, a big enough down payment is no problem. Looks like PenFed has extended warranties, too. If you get a CPO from a dealership, sometimes the warranties are amazing and sometimes they offer low APRs. If you can co-sign for your daughter, that will build her good credit history.

What sort of extended warranties does CarMax offer?

[matthewb0051]

Originally Posted by stomachmonkey

Find an older Mazda 3 like in the 06'-09' range.

Reliable car with good safety scores and can be easily found with a manual transmission. Everyone should know how to drive a manual.

Easy to drive with enough power to get out of it's own way but not so much where they can get into too much trouble with it.

Both my kids got absolute beaters for their 1st cars and got newer nicer reliable $20k cars when off to college.

This^^^

My #2 child got a 08 Mazda 3 with about 120k on the clock for $500 (hundred to be clear). PO thought it was falling apart. After I replaced $50 worth of engine mounts it ran like a dream. Also needed 2 rear springs.

But seriously, $20k on a first car??? Both of my kids are on car number 2. Why??? Because they both wrecked the first one. Number 1 child couldn't stop hitting things in his first car. Edit: he actually backed into my 996 one morning. I asked why, BC I couldn't see. Me: well if you scrape the frost off of your window...

Initially we thought about Land Rover Disco IIs due to low power, but decided against due to high center of gravity and MPG. Now that both first cars have been totaled, both kids are in .... wait for it... Land Rover Disco IIs. It slowed down #1 son considerably. Now he drives like a normal human being since his LR is slow and will flip over if he takes a corner too fast. That and mom said if you wreck this one you are walking.

So here's my total spend:
Audi A4: $2k wrecked
Mazda 3: $500 wrecked
LR: $1,250
LR: $2,500

Total: $6,250