Getting Your Teen Their First Car: A How-To

Make sure you're setting them up for safety right from the start.

1. Choose the Right Car

Let's face it, if you left the decision up to your teen, you would probably end up with either a huge SUV or a suped up sports car, neither of which is particularly safe for a young, new driver. However, there are plenty of options out there to make both you and your teen happy. And with the right research, you can find a car that is not only fun to drive, but also safe and reliable, too.

Choosing a midsize car is the best way to go, according to The Insurance Institute of Highway Safety and the Insurance Information Institute. Depending on your budget, you can opt for either a new or used model - just make sure the car is in good condition with updated safety features like airbags and electronic stability control. Also, you'll want to check out crash test and safety ratings before making your final purchase.

Fuel efficiency is another important factor to consider, especially in today's economy. Unless you're willing to cover the cost of filling your son or daughter's tank each week, buying your teen a gas guzzler is probably not a good idea.

2. Get the Best Auto Insurance Rate

The truth is that no matter what car you choose, insuring your teen driver will increase your auto insurance rates. But there are some things that you can do to make these costs as manageable as possible. In fact, another great reason to opt for safety first at the car dealership is that it can help keep your auto insurance premiums down. Because safer cars tend to have a lower accident risk, they are usually less expensive to insure.

Another way to get the best auto insurance rates possible is to scope out potential discounts. If your teen is a full-time student, for instance, he or she may be eligible for a good student discount. Researching your options beforehand will help you to make an informed decision when trying to find the right car for your teen.

3. Set Boundaries

Choosing a good car and purchasing the right auto insurance are only the first steps in keeping your teen safe on the road. Talking with your teen about safe driving and setting clear rules and guidelines are also important. To ensure that your teen stays safe behind the wheel, you can:

• Limit the number of passengers your teen can have in his or her car at any one time;
• Establish a "no cell phone" policy to ensure that your teen does not text or call while driving;
• Discuss what to do in cases of emergency, including accidents and adverse weather conditions.

Source: Allstate Insurace

Regular Car Checks Recommended During High Summer Temperatures

Staying on top of your car's systems during the height of summer can help ensure a comfortable and safe ride.

Summer can be tough on cars, especially during high temperatures when heat can destroy batteries and stress the cooling system and tires. As a precaution, these vehicle components should be checked periodically during summer to help avoid breakdowns and car problems, according to the Car Care Council.

Excessive heat and overcharging shorten the life of a battery. Heat causes battery fluid to evaporate, which then damages the internal structure of the battery. A malfunctioning component in the charging system, usually the voltage regulator, allows too high a charging rate, which will eventually destroy a battery.

To get the most life out of a battery, the council recommends having the electrical system checked to make sure it is charging at the correct rate. If your car's battery is the type that needs to be topped off, check it often, especially in hot weather and add distilled water if necessary. Keep the top of the battery clean. Dirt can become a conductor, which drains battery power. If corrosion accumulates on battery terminals, it becomes an insulator and inhibits the current flow.

The cooling system also works harder during hot temperatures to prevent overheating of the engine. To keep the cooling system working effectively, the coolant and distilled water mixture for a vehicle's radiator should be 50:50. As a reminder, never open a hot radiator cap when checking the coolant level in the reservoir.

As a rule of thumb, the coolant should be changed annually on most vehicles. This will keep the cooling system fresh and clean inside, which helps prevent corrosion and assures that the coolant has the proper boiling point and protection. A pressure test, thermostat test, a cooling fan test and a visual inspection for leaks and corrosion should also be done annually. Hoses and drive belts should be checked for cracks, bulges or frayed edges.

The radiator should be kept clean by periodically using a garden hose and a soft brush to carefully remove bugs, dirt and debris.

Tires also need special care in warmer weather as high temperatures put added stress on them. To maximize tire life and safety, check the tire condition and inflation pressure monthly, and have the tires rotated every 6,000 miles. Summer heat will cause the pressure within a tire to rise, therefore, it's important to check the pressure when tires are cold. The owner's manual includes the recommended air pressure for your vehicle's tires.

"It takes very little time and money to make sure your car runs properly during summer, and although breakdowns happen, they can definitely be minimized by taking a few extra preventive maintenance steps," said Rich White, executive director, Car Care Council.

The council reminds motorists that the vehicle's exterior also can be damaged by sunlight, UV radiation, acid rain, salt, dirt and air pollution. To protect the paint and finish, vehicles should be washed weekly and waxed every six months.

The Car Care Council is the source of information for the "Be Car Care Aware" consumer education campaign promoting the benefits of regular vehicle care, maintenance and repair to consumers. For a copy of the council's Car Care Guide or for more information, visit http://www.carcare.org/.

Source: Car Care Council

Owning a Used Car: How Much Can You Expect to Pay Each Month? | Myers Autoworld Anderson IN

If you are tempted to cut corners on the purchase of your next used vehicle to save money, you may want to reconsider. Even though you can often find deals to save money up front, it usually comes back to bite you.

Simply put, getting a good deal on a used car spans beyond the purchase price. You also must consider the little things that accompany the monthly payment such as insurance, gas, maintenance and repairs. This may seem like a lot to afford, but it doesn’t necessarily mean you won’t be able to afford the used car of your dreams.

The costs of owning your ride is decreasing as time goes on. On average, the monthly operating and ownership costs associated with owning a sedan is $739.67 (or $8,876 per year), according to a recent report released by AAA. Operating costs include gas, maintenance and tires whereas ownership costs include full-coverage insurance, license, registration, taxes, depreciation and finance charges.

Here’s a detailed breakdown of their findings by vehicle type, based on a 15,000 annual mileage:

If you are blown away by these figures, don’t start worrying yet. Here are some things to consider when shopping that can help you save later on down the line:

Gas

Wouldn’t it be grand if all cars could run off of oxygen? Unfortunately, cars need gas, and gas is expensive. Even hybrids require gas to function. Bummer.

So, when you’re shopping, you’ll need to pay attention to the fuel economy ratings, both on the highway and in the city. Put this expense into your car budget, and see how often you can afford to fill your tank. Even though you can’t control gas prices, you can control how much you spend to fill up your tank each week.

Maintenance

Extended warranties are great, but they typically only cover major repairs. That means you’re on your own with the day-to-day maintenance. It’s probably not a good idea to pick out the shiniest model on the lot without first taking a moment to figure out the anticipated maintenance costs. 

Generally speaking, the older the model and the higher the mileage, the more costly the maintenance. You also might want to get the maintenance records to see if the vehicle was properly cared for by its prior owner.

Tires

Don’t forget to take a peek at the tires. If they are extremely worn, they will need to be replaced, which can set you back hundreds of dollars out the gate.

Insurance

Besides the cost of the monthly payment, car insurance is a top expense for your car. Unfortunately, it’s illegal not to carry coverage if you live in any state except for New Hampshire, so insurance is an expense you can’t avoid. But, the year, make and model of your car can affect the cost of your insurance. 

Depreciation

Unless you seriously intend to drive the vehicle until the wheels fall off, you’ll want to purchase something that holds value. Otherwise, be prepared to fork over the difference between the sales price and what you owe when you want to sell or trade it in for a new set of wheels. Don’t let bargains on the purchase price fool you. Before putting any money down, look at the current asking price compared to older models to gain some insight on depreciation. And, steer clear of rebuilt or salvaged vehicles if you intend to earn any equity in your vehicle.

Bottom line, there is more to owning a car than just the car payments. You need to set a budget that includes all of the costs so you can see what you can reasonably afford.