The 12 Best Cars under $20k to Buy for a Teenage Driver

Every parent of a teen driver wants their child's first car to be safe. But safety isn't the only consideration regarding the best cars to buy for a teenage driver. Parents should also consider:

• Power: You don't want to tempt a teen driver with a powerful engine.
• Size: Larger vehicles can be more difficult to handle, but heavier vehicles are safer.
• Reliability: You don't want your teen dealing with engine problems or other problems.
• Age: Used cars are perfectly fine, but newer models have more available safety features.
• Budget: While you don't want to spend a fortune, spending more on certain features is worth the peace of mind.

We put together a list of the 12 best cars to buy for your teenage driver. The list accounts for the factors above and is designed to give you a range of options at different price points. You should also ensure they're covered with an affordable car insurance policy.

1. Toyota Highlander: $17,800

The Toyota Highlander ranks at the top of our list of the best cars for teenagers under $20,000. Purchasing a used model, year 2014 or newer, should only cost you between $15,000 and $20,000. In fact, the average price of a used Toyota Highlander is only $17,800. The Highlander's average insurance premium is $965 per year. 

In terms of safety features, the 2014 Highlander comes with standard daytime running lights and has an option for blind spot detection and lane departure warning. Other features of the 2014 model-year Highlander include all-wheel drive, a V6 engine, and eight seats. Finally, with a safety score of 5 out of 5 stars, it's easy to see why the Highlander earns our first choice of the best car for teenagers.

2. Subaru Crosstrek: $19,900

Second on our list of the best first cars for teens is the Subaru Crosstrek, models 2018 or newer. Another vehicle that won't break the bank for parents, the average price of a Crosstrek allows teens to drive a slightly newer car while staying under the $20,000 budget. The average price of a used Subaru Crosstrek from 2018 or later is just $19,900.

The Crosstrek's average insurance premium is $954 annually. The vehicle's safety features include anti-lock brakes, stability control, front-impact airbags, side-impact airbags, overhead airbags, knee airbags, pre-tensioners, and a security system. 

Other vehicle features include seating for five, six-speed transmission, and all-wheel drive. The Crosstrek also earns a safety rating of 5 out of 5 stars.

3. Volkswagen Jetta: $10,900

Another top choice for the best first car for teenagers is the 2016 Volkswagen Jetta. With an average price of only $10,900, parents have plenty of cash left over for its average annual insurance premium of $1,437. The Volkswagen also earns a safety score of 5 out of 5 stars.

In terms of safety features, the 2016 Jetta comes with adaptive cruise control and rear cross-traffic alert. Other vehicle features include seating for five, front-wheel drive, great fuel efficiency (33 MPG), and 12 trim types.  Overall, it's easy to see why the Jetta is one of the best cheap cars for teens.

4. Kia Sportage: $17,000

Another top choice for a teen's first car, keeping it under the $20,000 budget, is the 2017 Kia Sportage. The 2017 model year comes with an average price of $17,000. Its average annual insurance premium is $1,138. The Sportage easily ranked this high on our list, thanks to its safety score of 5 out of 5 stars.

Regarding safety features, the 2017 Kia Sportage has a long list. Just a few include dual front advanced airbags, a rollover sensor, anti-lock brakes, front seat-belt pre-tensioners, three-point seat belts for all passengers, and rear child-safety door locks. 

Other vehicle features include a six-speed shiftable automatic transmission, front-wheel drive, and seating for five.

5. Toyota Corolla Hatchback: $18,700

The Toyota Corolla, specifically the 2019 model year or newer, is another top choice for the best first car for teens. The average annual insurance premium is a bit higher than our other choices so far, at $1,729. However, parents will still stay under that $20,000 budget for the car alone, with the average sale price of a used 2019 or newer Corolla being $18,700.

Safety features for the 2019 Corolla include blind spot monitoring, lane departure warning, anti-lock brakes, stability control, front-impact airbags, side-impact airbags, overhead airbags, knee airbags, pre-tensioners, and a security system. 

Other vehicle features include automated cruise control, Bluetooth, CD player, rear defrosters, and a rear-view camera.

6. Ford Fusion: $12,200

Another excellent choice for a teen's first car and top cheap cars for teens is the Ford Fusion, model years 2015 or 2018. The Fusion earns a top-tier safety score of 5 out of 5 stars and keeps prices low at an average of just $12,200. The average annual insurance premium isn't bad either, at $1,105.

The Fusion's safety features include anti-lock brakes, stability control, front-impact airbags, side-impact airbags, overhead airbags, knee airbags, pre-tensioners, and a security system. Other vehicle features include automated parking, cruise control, a CD player, a rear defroster, a rear-view camera, sync system, and traction control. 

7. Mazda CX-5: $10,200

The Mazda CX-5 is great for teen parents who want to practically halve the $20,000 budget. Its 2014 or newer models come with an average price tag of only $10,200, easily making our list of good cheap cars for teens. Average annual insurance premiums are $955. The CX-5 also earns a top-tier safety rating of 5 out of 5 stars.

Safety features for the 2014 Mazda CX-5 include anti-lock brakes, stability and traction control, front side airbags, and side curtain airbags. Other vehicle features include a six-speed shiftable automatic transmission, front-wheel drive, and seating for five.

8. Hyundai Santa Fe: $17,800

Teen drivers have a great choice of a first car with the Hyundai Santa Fe, specifically model years between 2017 and 2019. The average selling price is just $17,800, keeping it well below that $20,000 budget. Further, the average annual insurance premium is only $1,082, and it earns a 5 out of 5 stars safety score.

The Santa Fe isn't short on safety features, either, with its smart cruise control, automatic emergency braking, lane departure warning, blind spot detection, and multi-view camera system, just to name a few. Other features include a V6 engine, front-wheel drive, a six-speed shiftable automatic transmission, and seating for seven.

9. Honda Civic: $7,100

For parents of teen drivers looking to save a good bit more on their child's first car, opt for a Honda Civic from model years 2012 to 2015 or 2019 and newer. A Civic is a great choice of cheap cars for teens. 

The average sale price for an older used Civic is just $7,100, and the average insurance premium is only $814 per year, making both costs highly affordable for many families. And even though it's a bit older, the 2012 Civic still earns a safety score of 5 out of 5 stars.

Safety features for the 2015 model Honda Civic include advanced compatibility engineering body structure, rearview camera, anti-lock brakes, smart airbags, lower anchors and tethers for children, and a tire pressure monitoring system. Other vehicle features include a continuously variable-speed automatic transmission and seating for five.

10. Toyota Prius: $8,100

Rounding out our top-10 spots is the Toyota Prius. Choose a model from 2011 or later to get that trusted 5-out-of-5-star safety rating. 

The Prius helps keep a teen's first car below $10,000 for parents, with an average annual sale price of only $8,100 and an average annual insurance premium of just $884. All around, the Prius is one of the most affordable cars for teens on our list. 

The 2015 Prius's safety features include anti-lock brakes, stability control, front-impact airbags, side-impact airbags, overhead airbags, knee airbags, pre-tensioners, and a security system. 

Being a hybrid, the Prius also gets excellent gas mileage, with a combined rating of 50 MPG. Other vehicle features include front-wheel drive, a continuously variable-speed automatic transmission, and seating for five. The vehicle's basic warranty is for three years or 36,000 miles.

11. Subaru Legacy: $8,300

The Subaru Legacy is another option for teen parents who want to keep the budget below $10,000. The Legacy could easily be the best first car for your teenager. For model years 2013 or newer, the average sale price is only $8,300, and the average annual insurance premium is just $923. The vehicle earns 5 out of 5 stars for its safety score, making it an affordable and trustworthy option for teens.

Just a few of the Legacy's many safety features include blind spot detection, lane change assist, and rear cross-traffic alert. Other vehicle features include a combined gas mileage rating of 30 MPG, a continuously variable-speed automatic transmission, all-wheel drive, and seating for five.

12. Nissan Murano: $14,700

The Nissan Murano also makes our list of best cars for teens thanks to its low price tag and many safety features—a used 2015 model or newer costs an average of just $14,700. 

The Murano's average insurance premium is $923. However, its safety score is just 4 out of 5 stars, dropping it down to last place overall on our list.

But that doesn't mean the Murano's lacking safety features. The 2015 Murano comes with anti-lock breaks, stability control, front-impact airbags, side-impact airbags, overhead airbags, knee airbags, pre-tensioners, anti-whiplash, and a security system. 

Other vehicle features include seating for five, all-wheel drive, and a V6 engine.

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Additional Considerations for the Best Car for Your Teen

There are many additional considerations when shopping for a new or used vehicle for your teen. Don't just look at the price tag alone to make your choice. Follow our guide to buying your teen's first vehicle.

Build a Budget

Plan for the vehicle's entire stay under your teen's ownership before comparing your options. The average amount of time consumers usually keep their first new vehicle is about four years. Consider if you have multiple children in your family and what your budget for your first teen's car needs to look like if all of your kids only keep their cars for four years each.

For a great budget-building learning exercise for your teen, include them in the process of calculating the budget. Explain all the components that get factored into the budget, including the cost of gas and the cost of insurance coverage. 

Make sure your teen understands that the overall budget needs to include not only the purchase price of the car but also potential interest if you take out a loan, as well as some extra money set aside for possible repairs and maintenance. 

Understand the Total Cost of Auto Insurance for Teens

When budgeting for your teen's first car, be sure to factor in the statistically higher cost of car insurance for the vehicle. Teens generally have much higher rates for car insurance than adults due to their inexperience with driving, greater tendency toward risky behavior like speeding, and tendency to get distracted by passengers or mobile devices. The average cost of a car insurance policy for teens is $1,332 for six months.

However, the cost of car insurance for your teen varies depending on a number of factors, including the vehicle's features. The more safety features the car has, the greater the potential discounts you can earn. That's another reason to choose one of the 5-star safety score vehicles from our list above.

New vs. Used Cars for Teenage Drivers

When considering an affordable first car for your teen while trying to find a car under $20,000, it's important to focus on your budget.

There are certain benefits to buying a used car for your teenager:

• You get a glimpse into the car's reliability and track record.
• You can afford a more fully loaded car for less.
• You aren't paying for the artificial inflation of a new car.

On the flip side, there are benefits to buying a new car for your teenager:

• Reliability is practically guaranteed.
• A dealer warranty is included.
• Advanced safety features are available, like electronic stability control, blind spot monitoring, and cameras.

Remember that there is no right or wrong answer. Make a fully informed decision about new vs. used for your teen driver and trust your gut.

Choose the Best Car for Your Teen and the Best Insurance

Once you find the best first car for your teenager, make sure to shop around for auto insurance as well. A local independent insurance agent can often get you better prices on your coverage than an in-house insurance agent who works for one insurance provider.

You'll most likely need all the discounts you can get now that you have a new driver on your bill. With an independent insurance agent helping you, it's easier than you might think.