Your clients with children will one day have to decide whether to get their teenagers their first cars. The decision can be fraught, with many emotional, financial and practical considerations to factor in.
To make the decision process easier, the New York Times has four questions to pass along to your clients should keep in mind.
- Is the car a want or a need?
- Can the child keep good grades with access to a car?
- Who will pay for secondary expenses, like gas or insurance?
- What safety measures are mandatory (i.e. no convertibles)?
If your client considers these questions, and decides to go ahead, they should next consider how to pay for the vehicle.
Read: 2 tax benefits of a company car
One option is for your client to cover the entire cost of the car if the child wouldn’t be able to to get places another way. Another choice is to pay half; this encourages the teenager to save their money and be realistic about expenses.
Read more here.
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