Often the journey to buying a first car is a family affair. You might be a parent passing down your own vehicle to your son or daughter, secretly excited that it gives you the perfect opportunity to get your own family vehicle upgraded but equally more reassured that your child will be driving a car that’s served you well. Or maybe, and a little more reluctantly, you’re having to dip in to your finances to help get them on the road.

Whether you’re financially invested or not, plenty can be gained on both sides from some carefully placed parental guidance and advice. First car purchase decisions may seem a world away from your own past experiences buying a car but, although over time some things have changed like safety, many fundamentals remain the same.

Price

Don’t go for the cheapest car that’s available. Price is always going to be a primary factor in any first car purchase but buying cheap can lead to false economies, especially if you don’t do the necessary checks on the vehicle first and it turns out to be a lemon. That said, not everyone has the luxury of being able to buy new or near new so if you see a competitively priced used car, do some valuation checks by looking at similar vehicles on online listings or getting a valuation report, and advise your son or daughter to investigate the vehicle’s maintenance schedule.

Needs and wants

Your idea of your child’s first car is likely to be quite different to their own and so compromises might have to be made. Make them think about what they’ll mainly be using the car for. If they’re going to be driving to and from school and town, something smaller will probably suffice. If you live rurally or need a car to lug hefty equipment around, maybe a slightly larger vehicle will be more practical – or one with off road capabilities. Together you need to decide what type of car meets their basic needs and use it at a guide for their search.

Give thought to ongoing costs like maintenance, fuel consumption and insurance premiums – the latter are likely to be significantly higher for drivers under the age of 25, especially if they’re after a big engine or high performance car. For that reason, we’d suggest starting with a smaller engine.

Safety

Once the budget is set, and you know what type of car you need, our guidance is to always buy the safest car you can afford. Safety ratings exist for new and used cars but, in the instance of a first time buyer’s car, it’s more likely that you’ll be looking at a slightly older vehicle.

The annual used car safety ratings will be your teen’s best source for comparison purposes. These are broken down in to the different vehicle segment categories, and provide a 1 – 5 star rating for a comprehensive range of cars, utes and SUVs of different sizes. Looking at the 2016-17 ratings for example, you’d find a 2006 Honda Civic and a 2001 Peugeot 307 both achieving a 5 star rating which gives you a starting point if you’re after a small hatch.

Checks and tests

When they’ve found a vehicle they’re interested in, offer to go with your child to see it. More often than not, they’ll appreciate having someone experienced with them for support – even if they don’t outwardly show it – and, if you’re helping with the finance, you have even more reason to be involved.

Look at the car’s oil and coolant and see if they are clean. Check to see if it has been well maintained and get evidence of its maintenance history. Check the tyres are of a legal tread depth, and the dials and knobs in the cabin all work. After you have given it a good once over, don’t forgo the opportunity to take it out for a good test drive so your first time buyer can get a gauge for how it runs, and feels comfortable behind the wheel. Be mindful though that the current owner may not have their car insured to be driven by under 25s so it pays to check on this beforehand. A vehicle history check and pre purchase inspection will provide a wealth of information about a car’s background and mechanical condition.

First time buyers need good guidance and grounding in reality. All too often the thrill of a new licence and inexperience can lead to impulse purchases and wasted money, and while we can all look back in hindsight and appreciate that feeling of excitement when you’ve just passed your test, we can also provide some objectivity. This won’t be their first car so it pays to be cautious until they’ve some good on-road experience under their belt. Careful thought and stretching your budget as far as it can go to get a reasonably safe vehicle tends to pay dividends in the future.