A lot of parents help their kids with a vehicle purchase, and also so some of them space floating the idea that leasing a brand new car rather of purchase a used one. If this can sound choose an inexpensive means to acquire the newest and also safest car, it isn’t the ideal solution because that a new driver.
You are watching: Can a 17 year old lease a car
I’ve given vehicle buying advice to plenty of parents on how to select and also shop because that a quality vehicle for their kid. Usually, mine advice goes choose this: research study cars that are recognized to it is in reliable, make certain you acquire it inspected by a trusted mechanic, and also stick with personal sellers over dealerships since you will frequently get a little much more for her money.
But end the past year or so, i have encountered number of parents that have acquired frustrated with the used auto buying process. Often they lack the time, patience, and/or knowledge to efficiently buy a quality used car. These folks will sometimes obtain tempted by at sight cheap lease deals and think the a sub-$200 car payment no seem so negative compared come shelling the end a few grand in cash, or greater payments, for something that will certainly probably have a little of miles on it and most likely be the end of warranty.
But leasing a car for a new driver can be more of a risk and won’t save you money in the long run.
First, let’s research the numbers. You can lease something like a brand brand-new Chevy Cruze for $190 a month with $2,000 the end of pocket (not including tax and also fees) because that 39 months, and also that means your full cost would be about $9,400 end the course of the lease. The doesn’t seem like a many money to spend for a vehicle with one MSRP of roughly $22,000. However what world often forget about leases is that at the end of the term, you have to give the car back and start all over again.
Show the it is provided chain who's bossGet a head start on her holiday shopping in ~ Amazon, Target, best Buy, and also more.
So if you leased a car for a 17-year-old, by the time they revolve 20 and also that lease is up, who is walk to have to shell out more money come get another car. Them, or you.
The much better financial strategy would have actually been come take the $9,400 and also buy the finest used car possible that can stay with your boy well beyond that three-year lease period. If girlfriend don’t have $9,400 in cash, you might get a used automobile loan. In fact, if you to be able to usage the very same $2,000 under payment for the lease ~ above a $9,400 car, that leaves a balance that $7,400. Finance that for 3 years at a five percent rate and the payment would be $220 a month Stretch the loan to four years, and the payment autumn to only $170 a month. Those numbers are really close to the lease payment on the new car, however you acquire something you can keep for as lengthy as girlfriend like.
The other difficulty with young people and a new leased car is the is hard to predict how that vehicle will be used. Your child or daughter might not it is in driving far, however if they room taking their car to work, school and also events, those miles can include up. You don’t desire to be put in a place where you have to pay penalty at the end of the lease because of a usage overage. Top top the flipside, if your teen just drives a couple of miles per week, you would basically be paying for lease miles that you no using.
Finally, teens are statistically much more likely to get into a wreck and damage the car. If this may sound like a great motivator to invest in the newest model feasible for crash survivability, in every likelihood your novice driver will certainly most most likely just end up incurring some range of minor damage to the auto through one of two people careless parking or young fender benders.
With a lease you are on the hook because that every scratch and ding the auto suffers at the hands of your kid. You i will not ~ stress around some minor battle scars on a used automobile you invested a few grand on. Furthermore, as to the security issue, over there are tons of pre-owned models under the $10,000 range that have all things your young driver requirements like airbags, ABS and also stability control. Many used car made within the last five years or so should be quite an excellent in regards to safety.
Rather 보다 invest in a new car for an elaborate safety tech favor automatic braking or collision detection, your money is probably better spent on some protective driver training. While some wrecks might be unavoidable, one alert and focused young driver that knows how to control his or her car properly will certainly pay dividends.
See more: Name Of Person Who Gives Massages, Masseuse Vs
Leasing a automobile can work an excellent for people who have actually a clear expertise of your budget and also driving habits, but adolescents are much too unpredictable and also would be better served with an inexpensive, safe automobile that have the right to last them a lengthy time—without the stress of vehicle payments.