Buying a car after passing your driving test isn't just exciting, it can be daunting too, especially if you’re not really sure where to start. There are also ongoing costs to think about too, like servicing and car insurance. So, to help you make an informed decision about your first car, here’s what to consider.
Work out what you need
Before you start your car search, think about what you actually need. For instance, if you’re driving considerable distances you'll need to look at fuel consumption as a priority. Also consider boot space and whether or not three doors or five doors is more practical for your needs.
Calculate how much it costs to buy
Price is undoubtedly going to have a big impact on what you buy (unless of course, money’s no object). With that in mind, searching the used car market is the best place to find a reasonably priced car that fulfils your needs.
Don’t be afraid to search for used cars in the classifieds as well as main car dealerships. More often than not, you can find real bargains through private sales.
Also, remember to haggle. It might not be a habit that comes naturally, but it’s always worth asking (after all, the worst they can do is say no). To increase the chances of a discount, familiarise yourself with the car’s general list price. You can do this by comparing cars of the same make, model and year of registration. Doing this means that if you come across a car you like, but it’s a little pricier than average, you’ve got a good reason to ask for a reduction. If you want more haggling tips, moneyhelper.co.uk has some handy pointers.
Think about maintenance costs
Ongoing costs include car tax (Vehicle Excise Duty, VED), servicing, MOT, and fuel.
Fuel will be affected by the number of miles you cover so estimate what this might be, based on the regular journeys you make.
You can avoid car tax by opting for an emission-free car, otherwise, it’ll set you back £165 per year (you’ll pay more if you pay in instalments). And if you’re lucky enough to have the option of buying a car valued at £40,000 or more, you’ll need to pay an extra £355 in car tax for the first five years of its life (unless it is a zero-emission car).
The other major maintenance cost is servicing. The exact amount will depend on the car so ask the dealership or seller what you can expect to pay. Some dealers offer prepaid plans which are worth considering too.
Don’t forget that if your car is more than three years old, it will also need an annual MOT. Cost is capped so at the moment, you’ll pay a maximum of £54.85 to MOT a car.
If you are looking for pre-owned cars, Used Cars Minnesota used car listings are exactly what you need. You can easily connect with dealing and find the car that works best for your budget.
Factor in car insurance
Young (and inexperienced) drivers are statistically more likely to be involved in an accident. So, the bad news is that if you’re under 25, you can expect to pay considerably more compared to other age groups. The good news is that you can keep the cost of car insurance down by:
Choosing a car in a low insurance group
All cars belong to one of 50 insurance groups, the lower the number, the cheaper it is to insure. Popular first cars include:
- Renault Clio
- VW Up
- Kia Picanto
- Ford Fiesta
- Fiat 500
Paying for your policy in one go
Instalments are convenient but you’ll pay more for the privilege.
Keeping your car secure
Ideally, this means keeping it in a locked garage overnight, if not, try investing in an immobiliser.
Be accurate with your mileage
Overestimating can increase your premium so try and be accurate. If you realise you’ve grossly underestimated, just let your insurer know and they’ll be able to update your policy (your premium may change to reflect the amendment).
Consider a telematics policy
Your driving will be monitored by a telematics (black box) device. Your insurer will assess cornering, braking, speed and acceleration with premiums adjusted according to how well you drive.
Compare quotes
Above all, remember to shop around for car insurance quotes. Comparing what’s on offer at sites like mustard.co.uk, means you can be confident about finding a policy that gives you the cover you need without breaking the bank.
