Cars considered cool by teenagers are often very unreliable, he says.
"At no time in your life is reliability more important but some of the coolest cars around right now are from the 70s and 80s, lowered ... these cars have the structural rigidity of a politician's promise.
"They will literally fall apart in an accident, they weigh half as much as a modern car."
He said serious accidents and deaths tended to occur within a relatively small group of young adults. "Aside from age, you're most at risk if you're male, have a poor education, friends in the car with you and a crappy vehicle."
Do thorough checks
Shane Prince, North Island general manager operations for Turners Auctions, says the biggest mistake parents and teenagers make is getting caught up in the emotion of a purchase.
"They see it, love it, buy it, then after a week or two find that it looks good but it doesn't drive as well, or there's an issue with it."
He says people should conduct thorough checks on every potential purchase. "Especially with cars for teenagers, they've normally done a bit of mileage so it's important to get it checked out, then buy the car. Not the other way around."
Buyers should look at the car from a critical point of view. "Is there a dent, or do the tyres need replacing? That's another $300 or so there."
If you find a problem, insist that the seller fixes it before you buy it.
Consumer New Zealand says the most common problems for cars are in the electrical system, including the starter and battery; the brakes, particularly in older cars; and power fittings such as windows and stereos.
Consider distance
People often use the odometer reading as a kind of shorthand for the condition of the car. But it's not always the best guide.
Driving long distances is not bad for cars as long as they are looked after. But if the reading seems low for the age of the car, get it checked.
Consumer NZ says the average private car is used for about 14,000km a year so if a 10-year-old car has a 50,000km reading then it's worth questioning.
Another thing to watch for is problems at a certain mileage - such as cam belts that usually have to be replaced at around 100,000km.
Bargain if you can
When it comes to buying cars, some negotiation is expected.
If you're buying from a dealer try to get about 15 per cent off the purchase price. Cash will probably give you more bargaining power.
Try to find two or three cars you would be happy to buy so you are in stronger position and not emotionally invested. This can be tricky for teenage drivers.
Contact insurers first
Some models are expensive to insure. Before you buy a teenager a car make sure you can get insurance for it. For example, State won't insure young drivers for high-performance cars until they have six years' driving experience. Insurers such as NAC and ClubAuto cater for "performance cars" that other insurers often won't touch but the cover comes at an increased cost.
What to look for
Matthew-Wilson said if he were buying a car and had only $1500 to spend he would get a mid-1990s Toyota Corona.
"It's not as safe as a one made in the last 10 years but it's incredibly reliable and will give reasonable fuel economy and it's not going to strand you on your way to your mum's house."
Prince said that to get a good-quality car people should be prepared to spend from $2500 to $4000. He had bought his daughter a 2000 Hyundai coupe for $4500.
"It comes back to what the buyer wants. If you want a Nissan Skyline GT you'll pay more for that."
If you're willing to spend a bit more you may get a used car from a dealer who has been servicing the car since it was new, which gives you a full mechanical history of the vehicle.
A Consumer NZ survey found that the Toyota Corolla and Honda Jazz were standouts in terms of reliability.
The Suzuki Swift and Toyota Yaris were the most reliable of cars bought new since 2004 and the Honda Civic, CRV and Mazda 6 were above-average in terms of reliability for cars bought new between 2001 and 2006.
Definitely different
It made sense for Margie Macalister to buy a car for her eldest son, Jamie, when he got his restricted licence.
"We live a bit out of town and the kids went to school on opposite sides of city so we thought it made sense for him to get a car so we weren't picking him up all the time," Macalister said.
"I figured that you only get one shot to go through the process of buying a car with a son - next time they will get what they want."
She insisted on mechanical checks and ownership and history checks.
"The message was that if you buy a car for $200, then have to spend $4000 getting it to warrantable standard you are better off looking at cars in the $4000 range from the start as that gives you much more selection."
The Macalisters started on Trade Me, then found a yellow Nissan Lucina at a Rotorua park and sell yard.
"It met my requirements of safety, with airbags and power steering. It met my son's requirements of cool. A bit sporty, definitely different and even lovingly named Buttacup by the current owner.
"It was also a manual, which he liked. The car cost $3500 and nearly five years later it is still going strong."
What parents should know
• Do your market research on models and pricing.
• Research the vehicle's safety rating and make sure it has a driver's airbag.
• Check fuel economy and don't buy over a 2L for a first vehicle.
• Get a mechanical inspection.
• Check that the person selling the vehicle owns it and that it does not have a security interest on it.
• Don't buy a turbo-charged vehicle.
• Consider the cost of insurance and if you can't afford full insurance take third-party insurance.
• Teach your children basic maintenance and how to change a tyre.
• Look for vehicles that have airbags, electronic stability control and size. Larger cars are a lot safer than smaller cars.
