Would you give your child this car?

[Anonymous]

Anonymous wrote:

Same question - my 7 year old RAV is worth ~$17k according to KBB. I think OP's understanding of her car as new and nice is deeply skewed if it's worth less than $5k.

This is very hard to believe. I have a seven year old BMW X5 that I just ran through car max and my offer was $12k. Kelley Blue Book has it at about $14k for a private sale. My car is semi-loaded with no accidents, very good condition and original owner.

I can believe it. I found when looking for used cars that Toyotas maintained their value more than European cars. Also, neither you nor the Toyota state the number of miles your cars have.

[Anonymous]

I would not give my teen an SUV. An SUV is a luxury vehicle whether those who drive them want to admit it or not. They also cause more damage and injuries to other drivers in a crash. If you want her to have a car buy her a 10 year old basic sedan.

[Anonymous]

I wouldn’t make my kid pay for a hand me down car. I would give it to her. She seems responsible and is helping to pay for the insurance- I would want to reward that responsibility.

[Anonymous]

Anonymous wrote:I would not give my teen an SUV. An SUV is a luxury vehicle whether those who drive them want to admit it or not. They also cause more damage and injuries to other drivers in a crash. If you want her to have a car buy her a 10 year old basic sedan.

They’re safer for the driver, though. As far as weight goes, 3500-4000 lbs is the point that maximizes driver safety without ridiculously increasing danger to others. A small SUV is just about right.

[Anonymous]

How is a very low mileage, 7 year old compact SUV worth only $4,500 even if it is a basic model?

The only way this would be true is if it had something really wrong with it that is a red flag, like a salvage title and being rebuilt after a wreck in the aftermarket, in which case safety is a concern.

[Anonymous]

Anonymous wrote:Used prices on rav4 and crv are insane right now. I’m shopping for one, and it’s actually easier to get a better deal on the Beamers and Audis. Not sure why.

Because toyotas and hondas are know for reliability even as they age and get higher in miles, while BMW/Audi is known for crapping out and being terribly expensive to repair, so once they are off warranty they tank in value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are you making her buy it from you?

To learn some financial literacy and responsibility, also in the hope she will have pride of ownership because she bought it? Seriously? Parents don’t do this anymore? Well, we are doing it.

No, that's not financial responsibility and then you lose control of the car. You cannot take away the keys and tell her no car if she owns it. She should take care of it or she loses it, simple.

We will pay for gas and insurance and kid will get a very old car to drive but it’s still OUR car, at 16 and that car will be replaced. When they work, they will put the money away for college for spending money. I would never give or buy a child a car in less we had no other option (like the car died and they need it it vs. want it).

I guess I disagree. She can’t drive it without insurance and she can’t secure that (or afford it!) on her own. But my question was about whether or not a seven year old car was too new, and I understand you think it is, so I will accept your input on that!

I think your plan is just fine. There is plenty of life left in the car but it's new enough to have reasonable safety equipment. After many years of clean driving, our HH has had some claims and we are living with some cosmetic damage from our learner. Remember the most important thing is always the safety of your child, followed by reliability. Tech is changing faster now due to computerization. So a really old car lacks protection. More than 10 years old, I'd be looking for something else.

If you want to make your child pay for it, I see the value in that approach. Parents usually have a larger picture of how they teach financial responsibility. This fits.

Your valuation seems very low. Maybe that's dealer trade-in. Car prices went up during the pandemic. You want to hang on to well-maintained older cars if you can. Keeping this in the family is smart.

I wouldn't put a new young driver in a brand new car because any mild fender bender is $2K now. Cosmetic damage is also costly. My kid brushed a rear view mirror in a way that broke the hinge. That's going to be $400 because I can't DIY it. The power function and side blind zone still work perfect but the mirror shaft requires duct tape to immobilize it.

Good luck, OP. Safe drives!

I agree. The sweet spot is a few years old, and a mainstream brand that will be up to date with safety features but still relatively easy to fix and find parts/paint for in case of cosmetic wear and tear (that tends to mean the mainstream Japanese and American brands).

[Anonymous]

How is a 7 year old car SO NEW! and SO NICE! ?? We replace our cars every 10 years, your car is nearing the end of my personal vehicle lifecycle.

You need to think about how you need this car to last her several years. If this has been your plan, move forward.

[Anonymous]

Anonymous wrote:I would not give my teen an SUV. An SUV is a luxury vehicle whether those who drive them want to admit it or not. They also cause more damage and injuries to other drivers in a crash. If you want her to have a car buy her a 10 year old basic sedan.

What? That's a very bizarre assessment.

[Anonymous]

Anonymous wrote:I think your plan is fine.

We have a Subaru CrossTrek for our daughter to use. It's low miles (about 10,000) and new enough to have all the safety features, which was important to me. We don't call it her car. It belongs to us but she can use it with permission. She drives to school and to practice, but she doesn't have free rein to drive wherever and whenever she wants at this point.

This is the answer. If you work from home, and can't really afford to do this (I assume if you have to put this much thought into it, affordability is an issue). I mean, does she even want to buy a car? I'm sure there's a feeling that she's learning the "value of hard work," and all, but I think it's our basic responsibility to enable our children to get school with our assistance. Not require them to work and buy their own car.

[Anonymous]

My highest priority for the car our kids drive is that it be as safe as we can afford. That was also my parents top priority when I started driving as a teenager.

For teenagers, having skin in the game on purchases, whether for cars, or college or anything else, I think different families just have very different approaches and would trust parents to know their children best. With my children, we don’t take that view at all. But, they are both highly responsible, cost conscious people. Like everyone, they have their issues, but needing to learn from having skin in the game just doesn’t happen to be one of them. When I was a teenager, I didn’t need that either to understand the value of money or to act responsibly. My parents bought me a car shortly after I turned 16 so that I could drive to my far away high school that didn’t have bus service. Some may view that as my being spoiled, but that spoiling didn’t have any negative impact as far as I can tell. I was then, and continue to be, a highly, organized, responsible and financial literate person. All to say that I don’t think there is a one size fits. All approach and families should probably just do what is best for their particular family unit and not make assumptions about the impact of other peoples choices for their kids.

[Anonymous]

Why would you make your 16-year-old buy your used car from you? Why not just let her use it? Sounds like you work from home and don't really need it during the day. Putting that money away would be a much better use of that money for your hard-working teen. That will teach her a lot more than making her buy your used car just so she can get to school and work. That's your responsibility to help her with that.

[Anonymous]

Anonymous wrote:OP here and I’m completely embarrassed and humbled. I must have scrolled to the wrong number on KBB because I was way off. But you’ve all given me something to ponder and now I’m really second guessing my thought of charging her. You all made some really valid points. I’m going to really consider reconsidering. I guess I’m completely out of touch. You all are harsh, but make good points!

I disagree with the other posters saying you should just give her the car. We sold our old car to our daughter. We did give her a very fair price - about $2K under blue book. We're not a family that just gives our kids everything they want. We believe in teaching them financial responsibilities and paying for a car that they will use exclusively is part of that. She also pays for insurance, gas, and any repairs. Our daughter was in college at the time and she was taking the car with her so no one else would be using it. Just giving your kids cats is how you end up with 30 YO still financially dependent on their parents.

[Anonymous]

"Cars" not "cats"

[Anonymous]

Anonymous wrote:

Anonymous wrote:Used prices on rav4 and crv are insane right now. I’m shopping for one, and it’s actually easier to get a better deal on the Beamers and Audis. Not sure why.

Because toyotas and hondas are know for reliability even as they age and get higher in miles, while BMW/Audi is known for crapping out and being terribly expensive to repair, so once they are off warranty they tank in value.

Yep, you'll need the money you saved for repairs. European luxury cars are cheaper to buy at a certain point bc they're more expensive to keep running. It's not just Hondas and Toyotas. Used American SUVs are also often more expensive than Audis/BMWs/Mercedes with the same features.