I'll veer on a tangent and suggest that perhaps what we want from our cars we may not want for our impressionable youth.
Reliability? Sure, we all want that.
What abou the perception of reliability? I think not. The best car for a new driver should be safe etc but make lots of creaking, popping, and grinding noises.
Just kidding; those are all bad, but a little wind noise through the weatherstripping is ok. Then she'll be afraid to drive it the next state over for Dennys at 4 in the morning. Trust me; kids think this is cool.
If given the choice between her car and her friends', if her car is uncool or whatever, they'll take the friends'. Naturally the friend will drive and our ego says the niece is the best driver of the bunch... but statistically, let's call it a wash if they're the same experience level. I'll bet dollars to donuts if her friend has a car it'll be a new honda civic and you'd be alarmed to find 40k per year being put on.
This is usually accompanied by the parents funding a gas credit card "for emergencies".
With gas where it is, it may make sense to get a (non-topheavy) gas guzzler cheap. Many parent/kid driving relationships involve the parent buying the vehicle, insurance, and maintenance while the kid buys the gas. If the gas doesn't get the car as far, there's less maintenance to be done!