Money Saving car advice for under 25's?

jadeyfamous

Hi people, just so you know i only just joined moneysavingexpert!

I'm 23, and because of complications with money when i was in my late teens i had to stop taking driving lessons, but i passed my test when i was 21 and got a car right away etc.
My car is only a 2000 Peugeot 206 1.6, and to be honest its been nothing but trouble since I've had it, only 2 months after i bought it its MOT was due, and i got a massive charge for 489.00 for things that needed fixing for it to pass the MOT. I've had to constantly pay out for things like new lights, new exhaust, new window wipers and so on, and my first years insurance for it was 620.00.
Ive been looking around for new insurance quotes as my insurance is due again in April and the cheapest I've got is 489.00 which i personally think it stupidly high for my car. I'm a woman driver to & I've made my claims etc and all of that.
I'm aware it does also depend on where you live and where your car is kept. I don't do any commuting or a lot of mileage yearly, but i still don't get why is my insurance STILL high for just a 2000 Peugeot 206 1.6?


Anyway, I want to buy a new car, because I'm tired of the problems i have constantly with this car, I earn a really good salary from my job but this car is eating at it constantly, and its more about the inconvenience of the problems with the car that bothers me. For the first 2 years or so of having my driving license i didn't want an expensive car or have expensive insurance to pay because there is no point, i would rather wait a few years until my insurance goes down so i can get the nice car that i really want without having to spend thousands in insurance.

But i keep putting off buying a new car because every car i look up insurance quotes for its more than double (sometimes triple) what i pay now, and also because i don't feel safe taking out a loan to buy a car right now as the economy is so unstable and my employer is just about hanging in on a very fine thread.

Advice on my car problems would be GREATLY appreciated!

Thanks in advance!
Jadey

KeithP

Your insurance is higher because insurance companies judge you to be a higher risk.

It is very little to do with the value or size or power of your car. If you have an accident, you can cause a lot of expensive damage to other people and their property.

And the facts are... younger people tend to be more at risk of having an accident than a somewhat older or more experienced driver.

Chippy_Minton_2

I bet a 1.1 would have been cheaper on the insurance too.

Prudent

I had a 206 and while it was nice to drive it has a lot of mechanical and electrical problems. At one time there was a whole website devoted to their problems. I have since had a clio for 3 years and only replaced tyres and breakpads -with much higher milegae than I did in the 206.

rev_henry

Tbh, a 206 1.6 is quite a powerful car for a new driver, you can't really say its 'only' a 1.6 206, hence the higher insurance. Aside from whatever you had to put it through the MOT, those other things you mention just sound like routine maintenance on an older car I'm afraid. You surely knew the MOT was coming up when you bought it? You're quite lucky you haven't had electrical faults which are common on French cars. And I'm sorry but your insurance at £489 seems reasonable to me.

Motoring isn't cheap. No offence but you don't sound like you know a lot about cars, so you're probably a prime target for being ripped off by garages. Next time something needs doing ask on here first if they quote's reasonable. There are people here in the motor repair trade who know.

goldspanners

rev_henry wrote: »

Tbh, a 206 1.6 is quite a powerful car for a new driver, you can't really say its 'only' a 1.6 206, hence the higher insurance. Aside from whatever you had to put it through the MOT, those other things you mention just sound like routine maintenance on an older car I'm afraid. You surely knew the MOT was coming up when you bought it? You're quite lucky you haven't had electrical faults which are common on French cars. And I'm sorry but your insurance at £489 seems reasonable to me.

Motoring isn't cheap. No offence but you don't sound like you know a lot about cars, so you're probably a prime target for being ripped off by garages. Next time something needs doing ask on here first if they quote's reasonable. There are people here in the motor repair trade who know.

i'll second the lot of this.

xycom1

I'll third it, very good advice there. Smaller engine would help for a start. Personally I don't think £489 is bad at all for someone who has only had a licence for 2 years!

goldspanners

xycom1 wrote: »

I'll third it, very good advice there. Smaller engine would help for a start. Personally I don't think £489 is bad at all for someone who has only had a licence for 2 years!

ive had my liscence for almost 10 years and have 6 years NCB,my renewal this year is £296 on my 1.6 focus. i have 3 points still live on my liscence so this puts it up a bit.
im sure i could get it down further if the car was parked of the main road but i don't have a driveway.
so all in all the op's quote seems fair enough.

i remember when i had only held my liscence for 2 years,i was still looking at 4 figure sums on a car with a 1.2 engine.

mqandy

If that insurance is fully comp, I'd say it's fairly cheap!

I'm around your age, and have a 2.0 L Focus, and pay £865 insurance! Mind you, I also suffer from the Y-chromosome condition...

You could try and reduce the milage you are covered for, that might make a difference, as might fiddling your job title a bit - I knocked £180 a year off by becoming an Engineer / Technician instead of a Business Professional.

Also, c®ap happens to cars; for example, my windscreen cracked when driving my Focus home from the dealer! Try and budget for £300 a year to spend on your MOT, servicing and unexpected problems - that's only £25 a month and will make it seem a lot less painful when it does.

Final point: A 206 is a pretty nice car, and tend to keep their value fairly well. Unless your pumping for a much newer car or a BMW or something, I'd try and learn to love it for a lot longer yet!

charlea

You could up your excess to a higher amount that will very often bring down the amount i pay 320 for a new audi tt converitable but i am in my thirties
consider doing the pass plus tht will bring down your premiums by around 30 percent


have you thought about leasing - there area some good deals out there
i found smart car and lings cars to be the best for leasing

ok its not yours but you get a new car hassel free motoring tax and you just insure it
if you dont do a lot of milage less than 10.000 a year its can be a good way of having a new car without putting down a huge deposit usally 3 months of the cost of the rental
a VAUXHALL CORSA 1.2i SXi 5 DOOR is 170 a month but you have to add insurance to that


Or look at young marmalade they offer deals which include a new car and insurance for drivers under 25 ( you have to have the pass plus) and there are restrictions and stuff but its worth giving them a call

based on someone who is 21 and live in london the cost for a
PEUGEOT 207 HATCHBACK, 1.4 VTi Sport [95] 3dr
deposit
£1,268.09
Followed by 60 monthly payments of 239
Please note:-
A credit arrangement fee of £145.00 will be added to the first monthly payment



if you wanted to own a mini copper with pepper pack 1.4 then its 319 over 4 years - and this included insurance for the whole of the time
that you are buying it plus minis have great reasale value


if you wanted a car that was second hand then a PEUGEOT 207 HATCHBACK, 1.4 Sport 5dr 2008-08 Plate would be £191.95 a month including insurance of 5 years and you would own it at the end of the period

hope this helps

anewman

When I started out at 26 having just passed my test, cheapest I could get insurance for a 1994 1.3l Skoda Favorit Estate was around £800.

3 years on, 3 years no claims, 29 years old, I am now looking at approx £500 for an 02 Skoda Fabia 1.4. That's after all the effort of adding my girlfriend to the policy to bring it down and using the job checker on this site to try reduce the cost.

£489 for a 206 1.6 is obscenely cheap from my point of view! I'd have literally snapped an insurer's hand off offered that price! In fact I'd have wondered if the insurance company was legit! (There's a scam around every corner )