Of the big "life purchases" a person makes, very few compare to that first car. Many teens begin saving for that first car as early as age 12, especially boys. Most teens choose to buy a used car since they're typically less expensive. So, as the parent you must be careful your teen isn't buying someone else's lemon. The key is to do the homework.

The following are tips for helping your teen purchase that first new or used car:

Shiny and New. If your teen is going with a new car, before shopping he should check out Consumer Reports "Best and Worst Used Cars" reports. These can be found online at consumerreports.com (fee) or hard copies are at most public libraries for reference.

It's Certifiable. Your teen should consider a "manufacturer certified" used car, even if they are a little more expensive. These used cars come with a guarantee they've been thoroughly inspected. Some even have warranties. Also, look for a make and model that will retain its value over time.

How High's Too High. Your teen should review their Spending & Savings Plan to determine how much car they can afford. Remind them not to forget the price of gas, insurance, registration and maintenance. Your son or daughter can work out the numbers with a GiveMe20 Savings Calculator. Here's a financing calculator if there is the need to borrow.

Knowing Worth. There are countless resources to help teens determine a car's worth. For example, they can research used car values at Kelley Blue Book's website – www.kbb.com or the National Automobile Dealers Association — nadaguides.com.

The Facts, Ma'am. Always know why the seller is selling. So, request all records from maintenance or repair work, and for peace of mind, be sure to order a full report on the vehicle's history. To do this, write down the Vehicle Identification Number (VIN) and use the services of an information provider, such as CARFAX.

Have the vehicle inspected. The most important consideration when buying a used car is its mechanical condition. You may want to have a mechanic you trust take a look at any car you're seriously thinking of buying. If the seller won't let a mechanic of your choice inspect it, they're probably trying to hide something, so you may want to look elsewhere.

Don't Be Jumpy. Your teen should never jump at the first car she sees. Be on the lookout for bank repossession sales or auctions. She should take her time, making sure the car is in good condition, for the lowest possible price.

A Little Privacy, Please. If junior is going to buy a car from a private owner, he may want to have it checked by an independent mechanic. If the seller won't let them have the car checked, keep shopping. Automobile clubs such as AAA offer inspections.

Knowing The History. Before your son or daughter buys that fist car, be sure to check the vehicle identification number (VIN) at Carfax. For about $20 he or she can check as many VINs as they want. It's important to find out as much as possible about the history of the car. If they're shopping at dealerships, request they run a VIN report.

When you have the time, check out these great resources:

Help on the web
Carfax.com ... Know the car's history.
Edmunds.com ... All you ever wanted to know about cars and car buying.
Kelley Blue Book ... Good information on buying new or used cars, as well as the "blue book" value for used cars.
http://www.nadaguides.com ... National Automobile Dealers Association ….good information on buying new or used cars.
Consumer Reports ... Provides car comparisons and repair history. You or your teen can access this site for $4.95 per month or $26 per year.

Books
Kids Can Make Money Too! : How Young People Can Succeed Financially--Over 200 Ways to Earn Money and How to Make it Grow
Complete Idiot's Guide to Cool Jobs for Teens