[MRM]

Owning a car is one of the most important financial decisions you can make in this society. Considering how expensive transportation is, it is as important to pick an appropriate vehicle as it is to select the right retirement plan or house. Reliable, inexpensive transportation is the foundation on which all future financial decisions will be made, including job opportunities, how much savings she will be able to put aside, and eventually what lifestyle she can live within her income. Every dollar a young person spends on transportation takes away from those long term goals.

The first question is whether a car is absolutely essential for her in college or is it just a luxury? I had a car during college because I worked off campus and had to have one, but i considered it a distraction and I wished I didn't have to spend time and energy taking care of it, parking, etc., when I could have used that energy and time on my classes.

My older son is a sophomore in college and my younger one starts in the fall. I've had a deal with them as long as I can remember. For their first two years they will live on campus and they will not have a car. At the end of two years we will look at their grades and reconsider. My older son is happy without a car and has agreed that living on campus is the way to go. He will get a practical, reliable car when he graduates from college and really needs one.

If you are dead set on getting her a car now, and not rewarding her at the end of the journey instead of the beginning, you would be doing her a disservice by buying her anything other than a very reliable, relatively small efficient vehicle that has a low long term cost of ownership. Toyota Camrys are a stereotype for a reason. They are the definition of cheap, reliable, high quality and high value transportation. They're not fancy but they're comfortable, very reliable, and are low cost.

My cars growing up were old and unreliable because that's what was manufactured back then and that's all I could afford. I can tell you from personal experience how difficult it is to have a car that breaks down, especially when you're in college. Having to spend a lot of money on maintenance or repairs is a killer. Don't teach her how to fall into the trap of buying something that is "cool" just so she can pay the price in terms of breakdowns, higher cost of ownership, and difficulty driving.

If she has to have a car, keep the Volvo if it's working for her. If you have to get something else get her a Camry or Accord or Civic or Corolla or a Mazda 3 and teach her a positive life lesson about cars and personal finance. Or a RAV if she has to have an SUV. But if she doesn't really have to have a car, send her to school without one and teach her a real lesson on savings and personal finance.