Used Cars: 1st time buyer, plastic credit cards, car times

Question
Hi Robert. Next year My son turns 18 what advice would you recommend for him to purchase a car without a co-signer? My credit is shot. I dont want him to end up like me.

Answer
Hello,

    Well... There are a few ways to go about this... Does your son have a job now? a car now? is he looking to buy a new or used car?  Times like a young person buying a first car can be very "want VS. need".

    I had been saving for quite some time before buying my first car, paid cash for a cheap CHEAP but reliable car.. Then using that car to drive to work, saved up enough money (in about 2 years) to buy a better car with cash once again.  This can be done with finance, If he had a cheap car to use until he had enough to make a good down payment.. or atleast know the job was stable.. If the job is questionable, financing can be VERY risky... If I knew a little more on your situation it would help.  I can tell you that if he doesn't already have any credit, you need to help him get some over the next year or so.  What I mean is, get him to get a credit card (depending on how responsible he is) I had a credit card since I was 16, and never charged more than $20 dollars a month, even that small payment adds credit.  Taking out a very small loan that he knows he can pay off early or on time FOR CERTAIN, is another good way to add credit.  Your credit may be shot but you can give him the tools he needs to start off in good stance.  

    A few tips: IF he has any plastic (credit cards, debit, etc) make sure he has the lowest limit possible.. Try to pay off bills early if you can when interest is involved... If you need to charge it to pay for it.. you dont NEED it, dont buy it... Younger people easily get caught up in the want vs. need situation.. Tell your son of your mistakes, of these tips, and make sure he understands that If he budgets (teach him how to budget, or if needed, I can give a crash course), buys only what he needs FOR NOW, and doesn't go over board.. The rewards will be good credit, more freedom to buy what he WANTS in the future, that 97 corvette will be alot cooler to own when he can actually keep it for more than 1 month.. and not pay double the value of the car in interest.  

    Try to buy that first car based on his needs, a cheap honda civic or toyota camry will last for over 200,000 miles and gets awesome gas mileage.. Its no mustang, but make sure he knows this isn't the last car he will own... Try to pay cash, or finance as little as possible.. That way it is almost impossible for him to get a bad start with his payments (and if its paid for, you can't lose the car).

    Make sure he calculates his income, I use a word processor and calculator to add up EVERYTHING and leave a $100-$50 cushion for emergencies every month, this will help him know the payments he actually can afford without going into debt if something goes wrong. (also teach him to save.. I give myself about 30 dollars per paycheck of spending cash, everything else goes to bills & what gets left over goes into my savings... its not AS much fun in the short run, but I have owned a corvette, and am about to have a 500 horsepower mustang, all with my own money and I am not TOO much older than your son... oh and I bought the corvette in CASH when I was 18 because i SAVED my money... and it was SO worth it.. and yes I had been saving/working since before I was 14 to do it... I love cars... what can I say.. but similar results would be possible for him as well if he started saving properly ASAP..).  
    
    I really can't say much more without more information on your situation, but those are tips I have recieved, and learned, over the years and my many car buying times... Its good adivce, but it takes a very responsible child to actually do it right, and its up to you the parent to give him that responsibility and teach its importance.  After that, there is nothing more you can do, he will choose his own ways, you give him the tools and hope he does what is best.  Good luck.  If you want any more tips, or wish to add a little more about the situation (and i will give you more advice that way) feel free to write again.  Thanks, and hope this helps!