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    • watfordwend
    • By watfordwend 10th Mar 18, 11:53 AM
    • 2Posts
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    watfordwend
    New young drivers - second hand car or finance
    • #1
    • 10th Mar 18, 11:53 AM
    New young drivers - second hand car or finance 10th Mar 18 at 11:53 AM
    Hello,

    I was looking for some advice. My 18 year old has finally passed her driving licence and now I'm looking into the next step and are thoroughly confused and would welcome advice for pros and cons.

    I know insurance will be astronomical and will shop around but should I outright buy a second hand car, buy a new car using a lease agreement or use a company such as Marmalade to lease a car and get the first year's insurance free. I have read so many mixed reviews for all of these options that my brain has become frazzled....

    Please let me know your experiences.

    Thanks, Wendy
Page 1
    • missile
    • By missile 10th Mar 18, 12:05 PM
    • 9,479 Posts
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    missile
    • #2
    • 10th Mar 18, 12:05 PM
    • #2
    • 10th Mar 18, 12:05 PM
    A young inexperienced driver is likely to have at least one (hopefully minor) incident where the car is damaged. I would advise you to buy a second hand car.

    Surprisingly <LOL> the chances of an incident are much reduced when the young driver buys the car.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • Tarambor
    • By Tarambor 10th Mar 18, 3:30 PM
    • 3,048 Posts
    • 2,212 Thanks
    Tarambor
    • #3
    • 10th Mar 18, 3:30 PM
    • #3
    • 10th Mar 18, 3:30 PM
    I know insurance will be astronomical and will shop around but should I outright buy a second hand car, buy a new car using a lease agreement or use a company such as Marmalade to lease a car and get the first year's insurance free. I have read so many mixed reviews for all of these options that my brain has become frazzled....

    Please let me know your experiences.

    Thanks, Wendy
    Originally posted by watfordwend
    Well Wendy its like this. In addition to the four figure insurance do you want to be funding the first 2 years of depreciation on a new car which are the most expensive and can easily be 50% of its value? I bought my car at 2 years old for just 1/3 of its new price. If you get a new car on finance or lease a new one you'll be paying for that.

    However saying that, Peugeot do "Just Add Fuel" which may be worth looking at as it is 3 YEARS free insurance for up to three drivers however she would have to have a Telematics box fitted. It also includes tax, servicing and breakdown and you could be looking around £250 a month with a £2500 deposit for something like a Pug 108. There is however a fly in the ointment other than you funding the depreciation and that is a 6,667 mile a year limit which is just a little over 120 miles a week so she would have to do no more than 20,000 miles in the first 3 years or there would be a mileage penalty. My son did 20,000 miles in 6 months in his first car.
    Last edited by Tarambor; 10-03-2018 at 3:32 PM.
    • davidwood681
    • By davidwood681 10th Mar 18, 3:42 PM
    • 317 Posts
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    davidwood681
    • #4
    • 10th Mar 18, 3:42 PM
    • #4
    • 10th Mar 18, 3:42 PM
    You could teach them a life lesson that will benefit them no end and let them save up and buy their own vehicle. Just a thought.
    • IanMSpencer
    • By IanMSpencer 10th Mar 18, 4:07 PM
    • 1,462 Posts
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    IanMSpencer
    • #5
    • 10th Mar 18, 4:07 PM
    • #5
    • 10th Mar 18, 4:07 PM
    Our offspring were put onto our second car, and they didn't get a car until we helped when they moved out (one got the old second car and the other got a cheap Hyundai under warranty).

    Car insurance IS confusing and it doesn't help that cheap cars that seem aimed at teenagers work out more expensive to insure. Also, putting named drivers on teenager's policies makes massive difference, and putting a teenager as a named driver on a reasonable car is often not eye watering.

    Unfortunately. teenagers are expensive to insure because almost universally they are not very good drivers. So if you have money to burn, and you do the parental bi-monthly iPhone replacement plan for all those lost smartphones, then buy new. Otherwise, I'm in the "make them suffer a bit" camp. With a couple of cars in the family, buying a car almost guarantees there will be one sitting on the drive unused all the time. Save money by being organised.
    • forgotmyname
    • By forgotmyname 11th Mar 18, 12:24 AM
    • 27,221 Posts
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    forgotmyname
    • #6
    • 11th Mar 18, 12:24 AM
    • #6
    • 11th Mar 18, 12:24 AM
    Can they afford the lease and a large increase in premium if they do need to claim?

    If not can they afford to pay off the lease in full and hand teh car back?

    Finance and large insurance premiums is very risky.

    Just had a quick look at the Peugeot one mentiones £360 a month with a £2681 deposit. But when clicking through its £500 deposit and £408 per month. limited to 6667 miles a year.

    Insurance premium £218 per month for the 1st year and £7848 over 3 years.. My little ones premium on the 2nd year was £900.

    And then there is the telematics. 4 warnings in a year for speed or harsh braking and the insurance will be cancelled. Cannot see the excess for the telematics policy but the standard one is £350 + £500 for those under 25.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

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    • Tom99
    • By Tom99 11th Mar 18, 6:28 AM
    • 2,253 Posts
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    Tom99
    • #7
    • 11th Mar 18, 6:28 AM
    • #7
    • 11th Mar 18, 6:28 AM
    I would go for 2nd hand as the chances of a ding or scrape are high which is very annoying on a brand new car.


    Also at 18 can they afford the depreciation on a new car which will be factored in whether they buy or lease.
    • fatrab
    • By fatrab 11th Mar 18, 7:25 AM
    • 852 Posts
    • 2,236 Thanks
    fatrab
    • #8
    • 11th Mar 18, 7:25 AM
    • #8
    • 11th Mar 18, 7:25 AM
    Well done to your daughter on passing!


    Definitely second hand for the first few years. There's a high chance it will be damaged or mistreated in some way until your daughter learns about the responsibility of running a car and maintaining it. Kerbed wheels, minor bumps, showing off to friends, lack of maintenance - anything is possible. On a "leased" car, any damage will come at a hefty cost.


    I went 50:50 with my son on his second car, for every penny he saved I matched it. His first car was a hand-me-down, a 1999 1.0 Corsa from his Granddad which was worth about £500. He had a minor bump when he reversed into a post so that cost him a few hundred quid for a bumper and paintwork. But it lasted him 18 months and he sold it to one of his friends who ran it for a further 2 years! His second car was an Astra 1.8 and he kept it immaculate as he'd learned how to care for a car by then. Unfortunately his 3rd car (A Fiesta ST which was his pride and joy) was written off by a 79yr old who got confused and drove down the wrong side of the road and hit him head on.


    He now has a newer Astra Diesel. He's never had car loan, finance or a lease/PCP (and he's terrible with money!)


    I hope your daughter enjoys the freedom her licence brings and has a safe future on the road.


    Best wishes.
    Last edited by fatrab; 11-03-2018 at 8:07 AM.
    You can have results or excuses, but not both - Wannabe debt free by Dec 2022
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    • Jimmithecat
    • By Jimmithecat 11th Mar 18, 7:46 AM
    • 142 Posts
    • 191 Thanks
    Jimmithecat
    • #9
    • 11th Mar 18, 7:46 AM
    • #9
    • 11th Mar 18, 7:46 AM
    I would definitely go for second hand.

    Recently looking for a car for my 18 year old daughter I narrowed the choice down by lowest insurance group. - then looked for one of these cars locally - we found a 5 door Skoda citigo for sale with 23k on the clock - itís. a great little car.
    We took out an admiral multi car policy (this is the 3rd car in the household) with a telematics box for this car, I am named as second driver - this was £500 for this car - with A high excess.
    • John-K
    • By John-K 11th Mar 18, 8:01 AM
    • 654 Posts
    • 1,016 Thanks
    John-K
    If you want your daughter to understand the value of money, and the different options, then gift her the sum you would have spent, and let her make up her own mind.

    I think that handing her a shiny new car sends a bad message to an eighteen year-old. That is a good age to start learning that things do not come for free, and knowing that you!!!8217;ve handed over the money, then need to manage the running costs gives an important perspective on cost and value.
    • GunJack
    • By GunJack 11th Mar 18, 10:01 AM
    • 10,173 Posts
    • 7,602 Thanks
    GunJack
    Buy cheap used car, but set up an account on confused.com or similar so you can check the insurance before you buy. Did this for Mini-Gun#1 and the choice of car, along with me as named driver, cut his first year insurance by almost £1000.

    Avoid corsa, fiesta, etc., usual small cars, as the ins. co.'s load them as they expect young inexperienced drivers to go for them. He ended up with a suzuki wagon R, and he now is about to put it through it's second MoT under his ownership.

    ...and he's paid for it all himself. £450 for the car, £1300 first year's insurance, and £970 second year with 1 year NCD. 2.5 years of motoring for him for less than the cost of 1 year of lease payments quoted on the Pug deal above...
    ......Gettin' There, Wherever There is......
    • MilduraS
    • By MilduraS 12th Mar 18, 7:43 AM
    • 20 Posts
    • 29 Thanks
    MilduraS
    I have only recently returned to the UK after living in a city abroad and have no NCD. I was planning to buy an old car to start with but the insurance quotes were well over £1,500 a year with a high excess, some were more than the car itself. Instead I have opted for a new Citigo with insurance quotes coming back at just under £500 with an excess of £100 rather than £400. I suspect in part because newer cars have better safety features.

    I would suggest looking into 2/3 year old cars where finance is still an option but the full price is much lower. Do keep an eye out for offers on new cars though. When I ordered mine there was a £1,500 deposit contribution which meant the 9 month old car I initially had my eye on was more expensive than the factory order I ended up with.
    • tiggerbodhi
    • By tiggerbodhi 13th Mar 18, 4:41 PM
    • 356 Posts
    • 300 Thanks
    tiggerbodhi
    Agree with the buy second hand, my Daughter has just got her first car, perfectly good, safe and reliable Astra for £730, insured for £1200 with a black box.

    No worries about the inevitable alloy kerbing, that "pillar just jumped out in front of me in the car park" moments that on a new car have to be repaired if not now but at the hand back moment.

    Also with a lot of the "insurance included" deals for new drivers they are a form of fleet policy and you do not gain NCD.

    In theory if she can avoid wrecking it will be able to sell it for not much less than she bought it for in a couple of years and will have some NCD to play with.

    The other advantage is she is going to learn how it all works and service/maintain in herself, easy to do on a 13 year old Astra, not possible on a new car on lease where the main dealer has to do it and charge £150 for an oil change.
    every time I manage to get one more breath into this body, I will sing a song of thanks to you my brothers, my sisters, my friends, may your sleep be peaceful, and angels sing sweetly in your ears.
    • Korkyb
    • By Korkyb 16th Mar 18, 5:12 AM
    • 216 Posts
    • 102 Thanks
    Korkyb
    Completely agree with the second hand route.


    My 18 year old daughter passed her test 2 months ago.


    She now has a 2011 Nissan Pixo (49K on clock) which cost £1700. She bought this from her savings.


    - £20 road tax
    - Reasonable MPG
    - £600 insurance (Admiral multicar policy)


    I didn't even consider buying her something new.
    • onomatopoeia99
    • By onomatopoeia99 16th Mar 18, 9:21 AM
    • 4,282 Posts
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    onomatopoeia99
    Buy used, maybe a decade old or more, so under £1000 and make her pay for it (purchase, road tax and insurance). She'll be way less likely to write it off that way (looking at experiences of friends with teenage children)

    I bought my first car at 18, a £500 shed of a Morris Marina, insured it myself, maintained it myself etc. Kept it until the floor rotted out. Nowadays I pay a garage for the maintenance, but as a student I didn't have the cash to splash around, so learned how to use a spanner and read a Haynes manual.
    INTP, nerd, libertarian and scifi geek.
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    • watfordwend
    • By watfordwend 17th Mar 18, 12:49 PM
    • 2 Posts
    • 0 Thanks
    watfordwend
    Many thanks everyone for taking the time to share your experiences - it's been extremely helpful
    • JP1978
    • By JP1978 17th Mar 18, 1:11 PM
    • 412 Posts
    • 287 Thanks
    JP1978
    Buy a 2nd hand car that has a few bumps and scrapes already - a, it will be cheaper and b, the driver wont be as paranoid about hitting it and actually concentrate on driving, so probably wont hit it - if that makes sense!
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