I think it's a bad idea. Of course this is just my opinion and I guess it also does depend on the kid.
My dad made me a deal when I was younger- basically he said that when I turned 16 he would help- yes that right "help" me buy a car not just outright hand it to me. I had to earn my own money (which I was doing since 12) and then when the time car he would match whatever I had saved up.
When the time came, I wanted a 69 Firebird...($2500) No Dice- Mom said it was too fast (I don't recall the too fast clause being part of the deal but then again moms reserve the right to modify and amend father/son deals)
So, I chose a 78 Camaro.. only ($1800)- again no dice- also fell under the too fast clause...
Finally, my dad brought home a 1982 VW Rabbit diesel 5-speed for me to "test drive" When I saw it I said no way. We drove it around and I still said no way... Then the parents made me an offer I couldn't refuse... Buy this car or ride from MI to FL with mom and sis listening to pop crap music or ride with dad listening to AM talk radio.... I bought the car and jammed to Iron maiden all the way to FL.... Only cost me $23.00 in diesel fuel.
BTW, I pretty much drove like a grandma when the parents were around so they wouldn't bother me. But when they weren't in the vicinity...
It was my stupid car so I took care of it and eventually sold it when dad agreed I had enough experience driving and co-signed for a loan for me (1985 Camaro- yeah baby!). I paid the payments and the insurance and the gas. Nothing was handed to me. If I didn't work, I didn't drive. Pretty simple.
After doing lots of stupid things in my Camaro and racking up more moving violations than anyone I know, I finally discovered the TR... The rest is history...
The point I'm trying to make is that there has to be some responsibility taken on the part of the youthful driver. I was careful in the stupid rabbit becasue all my money was tied up in it! I started driving stupid when I had some more power in the form of the Camaro (v6) - never wrecked it but came close a few times) Started learning my lesson after paying the police to keep stopping me.
My neighbor just turned 16 in Jan. You can hear him everyday squealing the tires all over the neighborhood. Already has gotten two tickets in the past few months... Can't keep tires on the truck and can't keep the gas tank full - Wonder why...
Anyway, I hope that you will at least try to impart some apparently forgotten lesson (at least these days)- That a young man or young lady, for that matter, should not expect things to be handed to them and that they should be expected to earn what they have. If you don't work for it and earn it, you won't respect it....
Besides all this life lesson stuff, I don't think I'd let my parents drive a TR (no matter how stock) much less a inexperienced 16 year old kid... Still lots of power and pretty squirrelly in the rain...
my .02