Even though you’ve got a student loan, before long you realise it doesn’t go as far as you think! However, if you put that extra little bit away every month, then you’ll realise that purchasing a car isn’t so hard.
If you’re living away from home, then it may be more difficult for you to purchase your first set of wheels, as finding a good deal and a dealership is often quite tricky. Not to worry, help is at hand; together with Trade Centre Wales – who provide used-car finance deals – we can help you find that dream set of wheels. Let’s start with some figures…
What are your options?
The most popular models change with trends year-on-year. In 2016, the most popular model was the Ford Fiesta. If you’re looking at a price, most young drivers spent £3,825 on their first model, which will get you something like a 2010/11 model Fiesta or Vauxhall Corsa.
How much will my insurance cost?
Many students and young people worry about how much their insurance will cost, so you’re not alone if you feel this way. According to figures compiled by Confused.com, by the end of 2015, 17-year-old drivers were paying nearly £1,900 a year for their car insurance, compared with almost £1,400 a year among drivers who had hit 21, a reduction of almost £500 in four years.
You may be understandably reluctant to approach the Bank of Mum & Dad again, but if you’re stuck for cash after you’ve invested in your new car, then perhaps you parents could compromise by paying for the insurance?
Cutting down the costs
Let’s face it, your parents aren’t going to want to pay large sums of money every month to keep you on the road, so it’s important to ensure you’re able to keep your costs down.
Black boxes that stay in your car are a convenient way of keeping insurance premiums down, and we recommend shopping around online for the cheapest deal before you commit to an insurance premium. Try to avoid large diesel engine cars; stick to a car that produces low emissions and has a good mileage-to-fuel ratio.
Here are some perfect first run-around cars if you’re stuck for ideas:
- Hyundai i10 – These cars are economical, cheaper than the average used car and within a low insurance premium bracket.
- Skoda Citigo – This is a great car if you spend a lot of time in the city, as its name suggests. It will cost you around £3,800 for a 2012 model, but is worth every penny.
- Vauxhall Corsa – Not only is the Corsa one of Britain’s most popular cars, it also sits in insurance bracket 2 – a perfect option for any beginner. Starting around the £3,000 mark for good models from 2010, this car represents a good long-term investment.