Categories: Personal Finance

8 times when it’s smart to be a cheapskate

5. Cars for teenage drivers

Parents, it’s tempting to buy teen drivers a new car. After all, modern vehicles have fewer maintenance issues and contain the latest safety features. But consider the financial drawbacks. Teens have the worst driving record of any age group. That’s why their auto insurance costs so much. Whatever car you buy, there’s a high probability the vehicle you buy will be involved in an accident, so an older model with a strong safety record might be a better choice.

Also, know that new cars depreciate quickly. Even a slightly used car will you cost thousands of dollars less than a comparable new model. That’s why buying a cheap vehicle is your best choice.

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