Tips for Shopping for a Vehicle for Your Teen

According to the National Highway Traffic Safety Administration (NHTSA), auto accidents are still the leading cause of death for American teenagers. However, due to safer vehicles graduated license laws, the numbers have decreased 65% from 8,748 teen deaths in 1975 to 3,023 in 2011.

Regardless of statistics and new vehicle safety precautions, automakers still haven’t come up with a vehicle that can drive itself when the weather gets bad, when a tire blows out or when another driver becomes distracted and wanders into your lane. Seasoned drivers rely on their experience and split-second-decision-making abilities to negotiate these perilous moments. Teens don’t have that experience.

Automobile crash experts cite inexperience, low seat belt use, driving with too many passengers in the car, inattention, drugs and alcohol and excessive speeds as the reasons why teens are involved in so many fatal crashes.

Another culprit is the size and type of vehicle they drive. In an emergency situation, because a young driver has little or no driving experience to draw on, he’s forced to rely on the structural integrity of his vehicle to see him through a collision. The kind of car a teen drives could mean the difference between injury and death.

Does that mean you should rush out and buy a brand new car with all the latest safety options?

Not necessarily. However, the Insurance Institute for Highway Safety recommends newer models. They do better in crash tests than older cars and have extra safety features like air bags, anti-lock brakes and passive restraints.

How a vehicle does in a frontal impact depends on its structural integrity and its crumple and crash zones. Crumple zones absorb energy on impact, and since their collapse is controlled, the energy that would otherwise damage a passenger area gets channeled to different parts of the vehicle.

Bigger vehicles have longer crumple zones, providing more protection to the passenger areas. However, they’re not an ideal fit for everyone. Consider a young petite woman. If she can’t comfortably reach the gas pedals or see over the steering wheel, she’s not going to have good control of her car. Consider, too, the rollover issue with sport utility vehicles. Because they have a high center of gravity, they are more prone to rollover than cars. Experts cite speed and inattention — two culprits behind teen crash fatalities — as the causal factors in rollovers.

NHTSA conducts front and side crash testing on vehicles predicted to have a high sales volume, vehicles that include a new safety feature or have been structurally redesigned. The agency also assigns vehicle rollover resistance ratings. They publish their results on their website. Before you begin to research your automobile’s crash test scores, take a moment to look at the website’s “Frequently Asked Questions” page. You’ll glean insight into the different kinds of tests they perform, under which conditions they perform them, and the factors they use to rate performance. Another source for crash test information is the Insurance Institute for Highway Safety.

If you’re in the market for an older model, experts recommend buying a sturdy and reliable — but not overpowered — sedan. Your teen won’t be able to drive at excessive speeds, but if he loses control of the vehicle, he won’t face the increased rollover risk he would if he was in a high profile vehicle. Make sure the car’s tires and brakes are in excellent shape. Examine seatbelts for loose or fraying fabric and make sure they attach and retract properly. Consider having the car thoroughly checked out by a trusted mechanic.

Can You Afford to Retire?

Have you ever sat down and figured out how much you’d need for a comfortable retirement? If not, don’t worry – you’re not alone! According to the U.S. Department of Labor (USDOL), fewer than half of all Americans have calculated how much they will need to save for retirement.

While it’s important to plan, it’s also important to set realistic, achievable goals. Know your options and ask questions. Set aside time to talk with your employer about retirement plans. Your employer may offer benefits like 401(k) plans which allow for an immediate tax deduction growth on your savings.

“While earlier generations of retirees relied on employer provided pensions, today’s workers will need to rely on their own work-related and personal savings for retirement,” said Stephen A. Cox, president and CEO of the Council of Better Business Bureaus. “That’s why it’s extremely important to have an alternate plan and save as much as possible.”

BBB and USDOL recommend that consumers consider the following to ensure a more financially comfortable retirement:

• Get started. Start saving now and continue to stick to your savings goal — it’s never too late to start saving. Make a budget and use it! Saving can be fun if you think big and realize how much it will pay off when the times comes to retire.
• Get realistic. According to the USDOL, you’ll need about 70% of your preretirement income. If you’re a lower earners, you’ll need 90% or more to maintain your standard of living when you stop working. The average retiree is in retirement for 20 years of their life. Plan ahead and learn how much you will need after factoring in Social Security and other sources of retirement income.
• Take advantage. Of your employer’s retirement savings plans, that is. If your company offers a 401(k) plan, participate in it. There may even matche a percentage of your contribution. If your employer doesn’t offer a plan, think about opening an IRA or Roth IRA. You can put up to $5,000 a year into an Individual Retirement Account (IRA) and contribute even more if you are 50 or older.
• Leave it alone. Avoid touching your retirement savings if at all possible. If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings in your current retirement plan, or roll them over to an IRA or your new employer’s plan.