Business & Investment

How much does the first car cost?

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Few can match the excitement of buying the first wheelset. After all, it’s likely to be the first major purchase you make as a young adult. But how much does it cost you? And what other costs do you need to budget apart from the car itself?

We will find out the exact amount you can expect to pay for your first car.

How much does the first car cost

by GoCompareThe average 17-24 year old driver can expect to fork £ 3,562 into the first car.

Apart from the car itself, you can expect to pay for the young people who buy the first car as well.

  • £ 2,204 Car insurance (Third party, theft and fire)
  • £ 54.85 MOT
  • Car tax is £ 125

Therefore, getting on the road with the first vehicle can cost a total of about £ 5,945.85. And that’s before you have to start paying for things like petrol, breakdown covers and services.

by StatistaThe average income of 22-29 years old is around £ 25,980 and the average annual income of 18-21 years old is £ 18,139.

That is, the total cost of the first car is about 23% of the salary for people aged 22-29, and rises to 32% for people under the age of 22.

But after all, most first-time buyers don’t fork all this money out of their pockets. Many have received considerable help from their parents.

Get help to buy your first car

A Survey by Bristol Street Motors Shows that more than half (53%) of UK parents help their children financially when buying a car. For those who help, they donate about £ 5,000 (more than 85% of the average total cost of the first car).

Studies also show that female drivers receive more help than male drivers. Up to 38% of female drivers say they received at least £ 5,000 to help them buy a car, compared to 24% of men.

Costs to help parents

Given that car insurance is notoriously expensive for young drivers, most people will help you pay for it. According to statistics, 23% of drivers between the ages of 18 and 24 get parental help with car insurance. About 14% of them pay the full cost of car insurance and 9% cover 20% to 80% of the car insurance cost.

For other costs like MOT, parents also tip for their children. In fact, 11% of parents step up to pay for their child’s MOT and services, and 8% pay for repairs, warranty and failure compensation.

If parents can intervene to contribute to all of these running costs, they can save up to £ 1,170 a year.

And that’s not all. Some parents also help their children with basic maintenance.

In fact, according to a Bristol Street Motors study, 5-8% of parents regularly change their child’s oil, check tire pressure, change windshield wipers, and even clean the interior. I found out.

This saves a total of £ 250 a year for young people. This is the amount you would pay if you performed each type of maintenance each year.

Find savings

Buying your first car is obviously not cheap. Apart from the actual vehicle costs, you need to budget for other costs such as insurance, MOT, services and maintenance.

However, it is possible to save on insurance that is famous for the high premiums of young drivers.

For example Save up to 48% on car insurance Use a Pay-As-You-Go (PAYG) policy instead of traditional insurance.

For tips on how to save on car insurance costs, see our article. How to get the best car insurance for young drivers..

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How much does the first car cost?

https://www.fool.co.uk/mywallethero/how-much-will-my-first-car-cost-me/ How much does the first car cost?

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