Giving the gift of a car for high school or college graduation is something that many families embrace. But all too often the make and model of the car can actually have a negative effect on the young person's financial situation, long after the gift has been given.
This problem usually occurs when parents or grandparents want to show their love and appreciation in a noticeable way by selecting a sports car or other expensive model as their gift. If you are thinking that you would like to present your graduating high school or college senior with a car in appreciation of their hard work and dedication, here are some tips you can use to make sure that it is a gift that will truly continue to give and be appreciated for years to come.
The cost of daily driving
Once you present the keys to your graduate, they will be bearing the cost of gas, tires, maintenance, and other daily car care needs and costs. Since high-performance models will mean less mileage per gallon, as well as higher costs when replacing tires or doing regular maintenance, opting for a less expensive vehicle can help keep the cost of daily driving affordable for your graduating senior.
The ongoing costs to insure
The cost of vehicle insurance is a major problem for teens who are no longer on their parents' policy. In fact, according to information posted on a major car insurance quote site, the average annual premium for teen car insurance is now more than $2500 per year.
Since this figure can take a large bite out of a new graduate's budget, opting to purchase a mid-range vehicle that will be less expensive to insure can make more financial sense.
The potential for misuse
Another reason to forego the purchase of a car with a big engine and a racy reputation is the potential for misuse. While the diploma is a solid indication that your student uses safe driving skills while behind the wheel, driving a car with lots of horsepower can entice them to misbehave.
Since speeding could result in expensive tickets to pay or injuries to heal from, a better choice is often to avoid this temptation entirely by purchasing a less expensive car with better safety ratings.
With all this information in mind, chances are you are ready to consider a car that will be more affordable for you to purchase, as well as for them to own and drive. There are several mid-range vehicles that will fulfill this goal. To learn more, a car dealership like Gary Rome Kia.Share