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I think there's more to it. I've helped a lot of friends, relatives, and neighbors select cars for their kids. Invariably, safety is a concern. Parents are worried about accidents so airbags, ABS, 4wd/awd, etc are important, and some of the 'older' cars don't have them. But it goes further. Parents are also focused on reliability. It is just too dangerous to be broken down somewhere. Want your 16 year old daughter in a mall parking lot with a car that won't start?
Around here, parents start out telling the kids they're getting a cheap beater. But then they start seeing what $2000 buys and quickly change their tune. Of course, it's easier to make $300 payments than shelling out $10K cash, so they usually start justifying a new car for themselves and give their kids their 'old' 2 year old still-reliable (still-making-payments) car.
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