Experts share top picks for safe, reliable cars for teenagers under $20,000
Teens are back to school and getting behind the wheel, which means parents may be on the market for their child's first car. But with used car prices still elevated and dealer fees varying widely, choosing the right car can be overwhelming. Consumer Reports released its latest rankings of the safest and most affordable used cars for teen drivers.
"They tend to be Asian brand cars -- Hondas, Toyotas, Hyundai and you see some Mazdas in there," said Ray Shefska, co-founder of CarEdge.
CarEdge is a leading consumer platform founded by father and son team Ray and Zach Shefska that is dedicated to empowering car shoppers to make confident, informed and financially savvy decisions. Ray Shefska says a lot of the cars on the list have strong reliability histories, are inexpensive to maintain and have advanced safety features.
Some of the best used cars under $20,000 include a Mazda 3 Hatchback, Genesis G80, Nissan Altima and Toyota Camry.
"Parents want to wrap their kids in bubble wrap, and these are some of the vehicles that come pretty close to doing that, because we know historically that younger, more inexperienced drivers, well, they tend to be a little more reckless, and so you need all these advanced technologies and airbags in there to, well, to protect our children. They're the most important things we have going," said Ray Shefska.
Experts say before you buy a used car, you should always get a pre-purchase inspection. It's important to have an independent mechanic take a look so you can prevent problems down the road. That includes looking under the hood, checking airbags and making sure all the monitors are working.
So what's best -- buying used or new?
Ray Shefska says it depends on your budget.
"The average new car payment today is $777 a month. The average used car payment is $556 a month. The average used car selling price is a little over $27,000. So realistically, it depends what a parent can afford," Ray Shefska said.
For buyers interested in purchasing a new vehicle in the $20,000 to $30,000 price range, there are good options for parents to consider, including a Chevy Trax, Buick Envista, Hyundai Venue, Honda Civic and Toyota Corolla.
"In many cases, that might make more sense than a used car, because you have a full factory warranty. You are covered for three years, or 36,000 miles. You don't necessarily have to worry about the vehicle breaking down, much like you might with a pre-owned car," Ray Shefska explained.
According to Shefska, the average day supply of pre-owned cars available right now is about a 46-day supply, which is about 30 days lower than the new car day supply of vehicles. If you're buying from a dealership, experts advise asking the dealership if they will share the repair order from when they did their inspection in order to find out what items were needed and what items they actually took care of.
Resources like the CarEdge website can help parents know what other people are paying in the area for similar makes and models before purchasing.
"But if you do your homework, and you see what others are paying, and you're willing to shop around, you can typically find that needle in a haystack," Ray Shefska said.
