Today’s teens are all about saving the environment and I am all for that. We do as much as we can by recycling, using environmentally safe products in our homes and we conserve energy. However, the next logical step in the process is to buy a hybrid car. A hybrid car is one that has two types of engines in it that work together to reduce the amount of precious fossil fuels used.

Hybrid vehicles have an electric motor assisted by a standard gas powered engine. Hybrids get good gas mileage because they need far less gas to run since the electric motor does most of the work. I was intrigued with the opportunities that were possible and decided to start looking into some of these vehicles in the hopes of purchasing one.

The bottom line is that most people want an affordable vehicle, one that provides you with reliability and gas mileage is important. It is critical to teach your kids how to buy an affordable car, especially with the average sales representatives willing to sell them the most expensive vehicle on the lot.

How to Save on Hybrids

No matter if, you are buying a hybrid or you are teaching your kids how to buy one, the following are some of the most important characteristics to look for in these vehicles. You can save with hybrids, but you do need to know what to look for and how it will help you save money either on the purchase price or in the long-term use of the vehicle.

1. Do your research before heading to the dealership. Learn which of the latest makes and models have been rated as the best available. Use third party websites and research companies to help you to determine this.
2. Learn about gas mileage. Each hybrid is unique in terms of how much gas it can save you. Newer models are improving in gas mileage even more than those hybrids out just a few years ago. However, you do want to compare the fuel economy of each of the vehicles. The United States Department of Energy provides fuel economy ratings on their website, www.fueleconomy.gov.
3. Check for tax deductions. This deduction may be in place for the next few months or longer if extended. Hybrid vehicles purchased after December 2005 are eligible for up to a $3400 income tax rebate. However, these rebates are limited.
4. Get a great loan if you are financing the vehicle. Even though you can save a few thousand dollars here and there, you will save much more by purchasing a vehicle loan that is a few percentage points lower. Be sure you focus on putting as much down as possible on the purchase.
5. Shop around. Hybrids are becoming more popular with car manufacturers. There are now SUV’s down to economy sized vehicles on the market from many of the top car manufacturers in the world to choose from. This also means that the average city will have numerous dealerships available to shop at.

Teaching Your Kids to Save at the Dealership

Even if you are purchasing a hybrid vehicle for yourself, bring along the kids. This is the perfect opportunity to see you save some money and to get the best deal. One of the first things you should do is to negotiate down the price as much as possible. Know what the competition is selling the vehicle for and ask for a lower price.

Teach your kids how to get a good price for your trade in, too. To do this, research the value of the car in advance, in the condition it is in. It may be better to try to sell this vehicle on your own, if you can do so, since trade in costs are often far less than what you can get if you sold it yourself.

As mentioned, be aware that the car dealership is not necessarily the best place to get the lowest priced car loan. In fact, you are likely to find a better loan price at your credit union or other financial institution. Find a credit union near you.

Each of these steps is a lesson that your children should be part of. After all, they will have to buy their own vehicle at some point.

I can’t wait another second to write this post. Whenever something terrifies me my fingers start moving at lightning speed. For some reason over the last few days there’s been a lot of chatter in blogosphere about buying car insurance for your teen or college student. And what I’m seeing is a lot of discussion about going on the cheap for that insurance.

That is the sort of advice I fear you’ll live to regret.

There are many times when the law determines a best practice that simply isn’t. Making Liability Insurance the sole legal requirement for teens is one of those times. (Not all states are so lenient, but many are. (Check out drivinglaws.org to look at legal requirements for teens by state). Liability only covers your teen as the driver in an accident, not your car, regardless of whose fault the accident is. So even if your teen is a responsible driver, it still doesn’t matter because teens just don’t have the experience to do the sort of evasive and defensive driving required to avoid accidents that are someone else’s fault.

They could spend years paying off damages to someone else’s car for an accident that wasn’t even their fault. Or worse, you could.

Look, I know times are tough. There is a lot of motivation to get insurance that is the least expensive but still meets legal requirements. But teen accidents are some of the most frequently occurring accidents. Of course they are. They don’t know how to drive in snow, rain, at night, on highways. When I think of how little I knew as a teenage driver, I can barely stand watching a teenager drive.

I think an important lesson to teach kids is that sometimes cheapest isn’t best, and spending a bit more up front can save you money in the long run.

Here’s a way to look at the very expensive cost of teen car insurance—and it is extremely expensive, considering that adding a teen to your own policy can double the expense. Just because your teen is of legal driving age doesn’t mean they can afford to drive. This is a huge life lesson. For instance, I am perfectly able to spend weeks on an expensive island resort, lounging in the sun. But can I afford it? No. Bring them in on this discussion. Learning to drive is a right, but getting to driving is a privilege. Ask them for ideas about affording a privilege.

I’m a firm believer that a teen should contribute some money toward their car insurance. It will make them safer drivers. After we’re finished with the rest of this lesson, and they’ve discovered how much you save if you demonstrate that you’re a safe driver, versus how much it costs if you’re not, they won’t want to be paying out more than they have to. Maybe they’ll need a side job to afford driving a car.

So here’s how they should comparison shop for car insurance.

1. First, give them definitions. If it is something you can bear to help pay for, please steer them toward Full Coverage, which includes Comprehensive Insurance and Collision Coverage. That means everything is covered for both parties in any accident, regardless of fault. Liability Coverage covers the driver and the damage the driver causes to another person, their property and car.

Then I suggest interjecting a moment of preaching: Tell them if they ever text while they’re driving you’ll hunt them down and they won’t drive again until they’re 40. I’ve known two kids who have died because they were texting while driving. I see it all the time when I’m on the road, and yes, I’m the crazy lady who honks and rolls down my window and yells at your teen to stop texting.

2. Make a comparison chart. Have your teen use the cost of putting them on your insurance policy, if you’re willing, as the baseline. Have them Google insurance companies that offer Comprehensive Insurance and Collision Coverage and compare the costs. Tell them to beware of insurance companies that only offer Liability Insurance.

3. GEICO gives a test online. Tell the kids to take it and get a rate. Do that at other insurers where possible.

If for whatever reason it’s not feasible for them to get a side job to help pay for car insurance, I do suggest them doing extra chores, or jobs around the house. It’s really important that the teen brain remain aware of the high cost of car insurance. It will translate to them being more cautious drivers.

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To me, summer means teens wanting to borrow the car constantly. They borrow the car and deliver it back with the gas light on. It’s more than annoying. But it’s a chance to sneak in a money lesson for one of their most revered commodities: gas money.

Gas money equals freedom—whether it’s your car or their own— and it’s compartmentalized in the teenage mind: It never occurs to a teenager, or many college students for that matter, that the money they use to go to the mall can also be used to gas up the car. The reason is simple. They know they can finagle a way to talk you into the gas money, especially if it’s your car. But even in their own car, if you want them to do errands, they’ll get the gas money out of you, then fly off to do what they want, that loaf of bread you asked them to go get arriving back at the house at 11 p.m.

So, let’s turn the tables a bit on all that. Gas prices are sneaking up again, and even if it doesn’t seem like it when teens are nickel and diming you for three dollars here, five dollars there, gas money adds up. They need to take some responsibility for it, especially when it translates so directly to their freedom.

I had no idea what to do about fixing the gas guzzler problem, until I happened to be complaining about it to my mechanic, and he said: “Try driving the speed limit.”

First of all, how did he know I have a lead foot? Well, apparently the way my tires are worn tell him the whole story. He’s the Columbo of cars.

But then something occurred to me: Are there really things you can do, like driving the speed limit, that conserve gas? Indeed there are. Here’s my mechanic’s short list: Check tire pressure regularly and make sure you have tires filled to the recommended air pressure. Drive the speed limit. Keep clean oil in your car, and don’t let it run low. Don’t run the air conditioner. Don’t drive in heavy traffic if you can help it, and use less congested roads, with less frequent stopping and starting

So, what I decided to do was give this list to teenagers. The goal: to raise awareness about gas money, and get them to take responsibility for the expense.

Here’s the plan:

1. Tell them to keep track of how much money they spend on gas for two weeks.

2. Then have them do the all the things on the mechanic’s short for the next two weeks, and track gas expenditure again. This time, they have to pay for their own gas. I especially like the speed limit one. It’s such a great way to con them into being safe. The one that might be hard, depending on where you live, is the air conditioner one. And that’s a good thing. Don’t worry about your suffering teen. We need to raise awareness and discomfort does that job very well.

3. If they’ve saved money in the second two weeks, give them a bonus, such as gas money for a week. There’s a real side benefit to giving them a lump sum of money in advance, earmarked for gas, rather than every time they go out. They have to pace themselves for a week, which raises awareness, too. The next time they slip a hand into their jeans pocket, rummaging for a couple of dollars for a slice of pizza, the thought will pop into their little heads: Is this my gas money? The idea that money is money, and there’s an opportunity cost for spending it, is a great lesson.

You may be asking what is the point of giving them gas money as a bonus, if the whole lesson was designed to prevent you from being the gas money ATM? Because if they think they’re going to get free money, they’ll keep being careful and conservative. They’ll decide whether they really need the air conditioning on. Awareness is the first step toward forming a good habit. After a while, the good habits will stick. Plus, the very fact that the cost of gas is their responsibility will be instilled—we can all hope.

If you have any more tips about car care that translates to better gas mileage, please share them.

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I’ll never forget the angriest I ever was with my father: the day he taught me how to buy a car.

The day couldn’t have started out any more perfectly: It was Saturday in early May, gorgeous and sunny, and I was so happy my feet barely touched the ground. I was 17, and Dad had surprised me that morning by waking me up to tell me that instead of waiting until August, right before I went off to college, we were going to go buy me a car right then, so I could have fun with it all summer (i.e., practice where he could supervise).

After I tugged on his hair a bit, to make sure he wasn’t an imposter wearing a Dad mask, I was up and dressed and out in 5 five minutes flat, despite the ungodly hour. I had worked at a Capitol Hill internship all senior year and saved half of my income, which were the ground rules. If I did all that, he’d pitch in the rest. I had arrived. I could picture nothing but me zipping off from my high school graduation, free as bird, in my own wheels.

First, we drove farther than I could believe. There were car dealerships everywhere in Washington, D.C., and nearby suburban Maryland. Why were we going to Virginia to purchase a car? In Virginia, tax was 4% instead of the 5% in Maryland and the 8% in Washington, D.C. Lesson Number 1. I was good with that.

Lesson Number 2: Dad wanted me to get a Japanese car for better gas mileage and longevity. I was good with that, too.

We get to the first dealership. I don’t like anything. I saw some boat of a grandpa looking car and was terrified my father would like that one. Nope. He agreed, nothing there worth buying.

We get to the second dealership, nothing in our price range. We drive a million more miles, I’m beginning to have my doubts. Then we get to the third dealership. We both see it at the same time and we both like it: A 1980 Toyota Corrolla (the year was 1983). It’s a cute hatchback, brick colored. Dad said it was within the budget, too. I was thrilled, explaining to the encouraging car salesman how many of my friends could fit in it to go to the beach.

And then….And then, my father, my own flesh and blood, did something that left my jaw hanging open, and when I shut it I refused to speak to him. In such a two-faced way, he approached the dealer, did nothing but complain about the car, and made a lowball offer. The car salesman said no, and my father turned around and walked away. No back and forth, no give and take. And he had the nerve to wink at me on the way out.

He was sitting in the car when I finally stormed over. He motioned for me to get in. As he drove off the lot, he was staring in the rearview mirror, smiling. I turned around to see the car salesman standing in the doorway looking after us.

“The number one rule to a good negotiation is to take your emotions out of it. One look at the car and you were already wagging like a happy puppy. And you let the dealer know it. That’s a losing position. It’s just a car. There are a million others. That’s the only way to approach a deal no matter how you feel.”

We drove to three other dealerships in silence, came home empty handed that evening, and I was heartbroken. My father said we’d try other dealerships the following weekend, there were always more cars, we’d find one. It fell on deaf ears. But, it was the best negotiation lesson I ever learned, even if I didn’t really speak to him for a solid week. It was one week later that the car dealer called and accepted my father’s lowball offer.

By the way: Even then he wouldn’t drive straight over and grab that car. No, we had to go to two more dealers to make sure there wasn’t a better deal around. He never shook my attachment, and I spent the entire morning before we arrived back at the Toyota dealership terrified someone would buy it out from under us. But of course I got the idea and I never forgot it. Now, I’m in the one in my family who winks behind the car salesman’s back on the way out.

So, if you tell your kids that story, add that in 1983 the economy was a heck of a lot stronger than it is now. There were was a much better chance that someone else would buy that car out from under me. Now is a great time to play what I call Dad Hardball in a used car negotiation.

1. Always get a used car checked out thoroughly by an independent mechanic before you agree to anything. Do not sign anything, or hand over any money before you do this. Do not drive it nearby to a mechanic the car dealer or individual recommends (if you buy a car from an ad in the paper, or on eBay).

It sounds like a hassle, but absolutely necessary for a trustworthy assessment. If the seller is hesitant to let you do this, there’s something wrong with the car.

2. Never buy a car that’s been in a front end accident. Most cars are never the same afterward, even if they are repaired by the best mechanics. You could be buying a lot of expensive headaches. The exception to this is if you’re spending a couple of hundred dollars and want a jalopy to last a few weeks, maybe a summer, and it won’t be driven any long distances. But for teaching kids about investing wisely in a safe, lasting car, pass up any front end accident cars.

3. If you’re buying a new car, consider last year’s model, and a corporate demo car at that. A corporate demo car is a new car that has been driven a few hundred miles by car manufacturer executives. They cost less than new cars, but have new car warranties. You can explain to your teen, or college student, about depreciation here, with an example that really hits home. Tell them the moment they’d drive a new car—non corporate demo—off the lot, it would go down in value immediately to be worth the amount of the demo car.

4. If possible, pay cash for a car. Try to avoid car loans. But if you must take out a loan, use the opportunity to teach your kid lessons about paying off loans in a timely way, and if possible, to pay them of quicker than the life of the loan. Show them that the faster you pay, the less money you spend in the long run. Use the Amortizing Loans Calculator here to do the match with your kids. This is a good lesson for when they own mortgages and should be building equity in their homes.

You can also find more information in the Saving for a Car section of the GiveMe20.com website.

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