New drivers use savings to buy first car

Written by Editorial Team
15 September 2009 / by Andy Davies

The majority of new drivers use their savings to buy their first car, has revealed.

It has found that 40 per cent of new drivers will use their savings to buy their first car, while 16 per cent of 17 -21 year olds admitted to taking out personal loans or using credit cards to fund their new wheels.

Meanwhile, 14 per cent of young drivers are lucky enough to have received help from their parents to buy the car they wanted.

It seems young drivers are aware of the benefits of having a smaller, less powerful car as 75 per cent chose a car with a 1.4 engine or less, with lower car insurance premiums in mind.

A Vauxhall Corsa appears to be the number one choice as nearly 14 per cent chose the small hatchback, while Ford’s Fiesta is the second most popular car with 9 per cent of new drivers choosing this particular model.

The study also found that a 17 year old female driver could save up to £1,000 on car insurance by insuring a 1996 Vauxhall Corsa compared to a 2006 VW Golf by opting for Third Party Fire and Theft (TPFT) cover.

Commenting on these findings, Will Thomas, head of Motor Insurance, believes that despite a Corsa being a popular first car, parents will do well to remember any car with a small engine will be good for building up experience, before going on to say that TPFT cover could be the best cover for low-value cars as young driver excesses could make comprehensive cover “a pointless exercise”.

Mr Thomas added: “The best way to keep the costs down is by shopping around for cover, as not all insurance providers rate age the same way and some companies specialise in covering younger drivers. Price comparison is the ideal solution to getting the best price for the most suitable cover.”

© Fair Investment Company Ltd