An exciting time for young adults and a time of much conversation with their parents is the time in their life that they approach the driving age and thoughts turn to owning their very own car. Needless to say this brings about a whole bunch of conversation between the young first time buyer and their parents.

I have gone through the same with a couple of my kids now and having been in the car business for a number of years, I can assure you that there are some very real reality checks that need to happen as you discuss this subject with your child.

As is the case with most all first time car buyers, the focus of their attention (beyond the car of their dreams) is the price of the car itself. At this point, not a bad thing, at least their thinking in some sort of financial terms. So, follow up with this thinking and discuss with them just what their plan is when it comes to paying for the car. I should pause right here and mention that if you are the type of parent with the means and desire to take care of this financial responsibility for your child then... well you probably haven't read this far anyway.

When kids are at the age that they begin to get excited about owning their own car, they more often than not focus on the price of the car. This is certainly not a bad thing to discuss with your child, but as you well know... the price of the car... is not ultimately in no way shape or form the cost of the car. Even if your first time driver saves up and pays cash for their car... you know we never really ever stop paying for the car.

As we know, a vehicle is a constant expense, a constant hit on your budget. So, be sure to hammer home the reality of insurance, gas, oil, maintenance... and oh yes, those things that wear out, break, or otherwise cost big money to get repaired.

Let's get back to the financing angle for the point of our discussion. You'll want to insist that your first time young adult car buyer be in a comfortable position to put at least 20% down of the purchase price. Also, don't allow them to consider financing beyond the 48 month mark. In fact, insist on this.

The vital aspect of the no more than 48 months and at least 20% down will help ensure that your son or daughter isn't financially upside down in their car (they own more than it's worth) for the life of their loan. No complaining or crying... make sure they do this.

Forever owing more on your car than it is worth, is not a strategy that anyone going into a car deal should allow... especially a young first time buyer where budgets are tight and building their credit history is crucial. Believe me, just about everyone who ignores the 20% down and the 48 month financing rule, puts themselves at the bottom of a tall hill to climb.

The assumption that this article is based upon is that your first time buyer is looking at purchasing a used car since this is by far the majority of the cases. But, if you are looking at the possibility of a new car for the first time car buyer then I must tell you that there are a whole other set of rules that apply that will keep you from spending way to much on a new car.

If this is indeed the case for you then head over to my website. Once there, you'll see that I have laid out in very easy to follow form, exactly what you need to do in order to avoid paying thousands too much for a new car. If you follow tips, and advice on my site, you'll be way ahead of the car buying game.