New drivers plan to spend £4,000 on their first car

Gareth Herincx

17 hours ago
Auto News

Young-Driver-driving-lesson

Newly qualified drivers plan on spending £4,124 on their first car, according to new research.

Pre-17 driving experts at Young Driver surveyed 500 of its customers, who will soon turn 17, to find out what their plans are when they pass their driving test.

Almost two thirds of the respondents (64%) said the new driver would have their own car when they passed their test – with 8% already having one lined up. One in three (29%) said the new driver would solely have use of their parent’s car to begin with. Only 3% would have no access to a vehicle.

When asked how much they were likely to spend on a new car, only 4% said they planned on forking out more than £10,000. Seven per cent were looking at cars under £1,000, with the average amount, from all the responses, being £4,124.

In 60% of cases the car would be bought by a parent or other family member, and for 40% it would be the driver themselves.

A car dealership was the most popular way of securing a new car, with 36% saying that is how they would purchase a vehicle, closely followed by 35% looking online. One in 10 (11%) plan to get a car from friends or family.

Of the new drivers who will be getting a car, the Young Driver research revealed that:

  • 98% will get a used vehicle
  • 84% will get a petrol
  • 12% will get a diesel
  • 4% will get an electric
  • 92% will get a manual

Young Driver launched in 2009 and specialises in teaching 10-17 year olds how to drive, with the aim of creating a safer next generation of drivers.

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73 plate countdown: 12 new car buying tips

New car buying tips - The Motor Ombudsman

With the imminent arrival of the new 73 registration” plate on September 1, The Motor Ombudsman is offering consumers a series of handy tips when buying a new car

The 12 key points include the importance of doing research, budgeting for longer term affordability, and reading documentation carefully prior to purchase:

Shop around and take a test drive
Spending time doing your research online and visiting showrooms can pay off, as the choice of models and fuel types available from manufacturers, which each offer their own merits and driving experiences, has grown in recent years. Once you have a shortlist of cars that are suitable for your requirements and budget, take a test drive to get practical experience of what they will be like to use on a day-to-day basis.

Emissions influence payable road tax
A car’s CO2 emissions determine the rate of vehicle excise duty (road tax) that you will need to pay during ownership of the vehicle, and this often rises every year. Electric vehicles are exempt until April 2025, but self-charging and plug-in hybrids are not, although these will be at the lower end of the scale in terms of tax due. There are plenty of online resources and the manufacturer’s vehicle specification itself to check what band your preferred car will be subject to.

Virtual vehicle purchases are classed as “distance sales”
Buying a new car online from start to finish over the phone or the web without physically visiting retail premises at any point during the purchase of a car is classed as a “distance sale”. The legislation that governs this type of transaction is the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which offers other rights to those found in the Consumer Rights Act 2015. For example, when buying a vehicle on the internet, you have two weeks to return the car from the date of delivery if you change your mind, but it is important to bear in mind that there may be deductions for any usage during the first days of ownership.

Electric vehicles offer buyers more choice than ever
The majority of manufacturers offer fully electric vehicles as part of their model line-up. Plus with new brands coming to the UK, the choice of EVs at different price points is far more extensive than it was only a few years ago. EVs do tend to be more expensive than petrol or diesel equivalents, so shop around, speak to current owners about their experiences, read reviews, and try them out for yourself before buying, especially if you are looking to adopt battery-powered motoring for the first time.

Never buy a car without doing your homework
Spend time doing your research to find the vehicle that is right for you in terms of practicality and comfort. As well as reading reviews, and the plethora of information available online, use test drives to get first-hand experience of whether equipment, such as child car seats, pushchairs, bicycles, and golf clubs, all fit within your shortlisted vehicles, alongside the expected number of passengers.

The Motor Ombudsman’s Garage Finder
There are many retailers selling cars across the country, but not all will be voluntarily committed to the high standards of service required by The Motor Ombudsman’s Motor Industry Code of Practice for Vehicle Sales. The Motor Ombudsman’s online Garage Finder (TheMotorOmbudsman.org/Garage-Finder) is a quick way to find a local franchise dealer or independent retailer that is accredited to the Code. It also means that, if you have an issue during the purchase process or beyond, that you are unable to resolve in the first instance with the business, you can then call on The Motor Ombudsman’s free and impartial Alternative Dispute Resolution (ADR) service for independent assistance.

You need to check all paperwork carefully before signing
Prior to buying any product or service, it is important to read any paperwork thoroughly to verify that all information is correct, and that you understand the terms and conditions (i.e. the small print) in full. This applies to the order form, invoices, as well as the terms of putting down an initial deposit, which will often not be refundable once paid, as this implies that you have a contract of purchase with the seller.

There are various ways to pay for a car
Aside from being able to purchase a car outright in one lump sum payment, there are several means to fund a vehicle. These can include, taking out a loan with a bank for example, or opting for a deposit and monthly payments over a number of years via a Hire purchase (HP) or Personal Contract Purchase (PCP) arrangement.

Take the time to understand the merits and disadvantages of each type of financing, as well as associated conditions, such as annual mileage limits. Also, it is important to bear in mind that finance payments will still often be due even if the car is kept off the road for prolonged periods for repairs, as a contract will exist with the finance provider.

Have a clear picture of longer term affordability
When buying a car, it is important to take into account the longer-term running costs, not simply if a vehicle is affordable in terms of the initial deposit, especially at a time of high inflation and bills. If not part of an all-inclusive subscription that is becoming more widely available, budgeting should also be based on the monthly finance repayments, the estimated charging tariffs for EVs and plug-in hybrids (at home and on-street), and the often-fluctuating price of fuel at the pumps.

Then there is of course, breakdown cover, insurance, maintenance and the cost of replacement components, such as tyres and brake discs, which wear with vehicle usage. Equally, enquire about service plans, to get an idea of the cost of routine maintenance once any initial complementary purchase offers have expired, with the same applying to the purchase of an extended vehicle warranty.

Range varies by EV make and model
The maximum range provided on a full charge can often be an influential factor in a purchase decision when choosing an EV. It can equally vary by make and model, meaning it is important to make sure that the car suits your planned usage, i.e. whether it is going to be primarily for daily commitments or the commute. Range can also fall due to a number of factors, such as during cold weather and when using in-car systems, so it is worth speaking to the seller about how it can be affected, to make sure your needs are still met. Similarly, ask about charging times and speeds depending on the rating of the home or on-street points being used.

Every question is a sensible one
During your research, and prior to signing any documentation, this is an ideal time to ask any questions to the seller about the vehicles that you are interested in, whether this is about the specification, options and accessories, financing, or running costs. If accompanied by one of the retailer’s sales representatives, a test drive may also prompt further questions about the practicality of the car in terms of its functions and performance when out on the road.

Expect a possible wait for delivery
Although global supply chain issues have subsided in recent months, and delivery times of new vehicles have reduced, there may still be a wait of a few months from the point of ordering before the car arrives at the retailer for handover. Therefore, you may have to run your existing car for longer before it is handed over to the retailer as a “part-exchange”, or when you can indeed sell it, particularly if you rely on your existing vehicle as your sole form of transport.

“A brand new car is, for many, a significant financial commitment, even more so at a time when there are ever-increasing pressures on household budgets,” said Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman.

“Therefore, spending time doing research on different makes and models, buying from a reputable Motor Ombudsman-accredited retailer, budgeting effectively, and reading the small print, are all factors that are imperative for consumers to keep front of mind before signing on the dotted line.”

Advice for buyers of brand new 72-registration cars

Kia Sportage - 72-registration

Every March 1 and September 1 in the UK the date identifier on new car number plates changes.

So, this September the current ’22’ plate (eg AB22 CDE) will change to ’72’ (eg AB72 CDE).

Traditionally, more new cars were sold in March and September than the rest of the year combined as drivers raced to drive new cars with the latest registration plate.

However, the global shortage of tiny semiconductor computer chips has meant that demand is now far outstripping supply, so sales in general have taken a hgit.

However, if you’re not put off longer than usual waiting times, The Motor Ombudsman (which is an independent and impartial ombudsman dedicated solely to the automotive sector), has some great advice.

Shop around and do your research
Spending time doing your research online or visiting showrooms can pay off, as some retailers may run promotional offers to help with the cost of ownership. Test driving cars of interest is also an effective way of knowing which makes and models best suit your requirements and lifestyle.

It is just as important to ensure that your chosen retailer is accredited to The Motor Ombudsman’s Vehicle Sales Code, as this shows that the business is adhering to the highest standards of service. In addition, should there be a complaint that you cannot conclude directly with a seller in the first instance, you will also have access to The Motor Ombudsman’s free-of-charge, independent and impartial Alternative Dispute Resolution (ADR) service.

Expenses for running and maintaining a car should be budgeted for
It is not only the initial price tag of the car which matters in terms of being affordable. Post-purchase, there are running and maintenance costs to take into account, such as monthly finance payments, annual servicing, fuel or electric charging tariffs. Many new cars are offered with incentives, such as free insurance, road tax (where applicable) and breakdown cover, but once expired after the initial defined term, these ownership expenses will also need to be paid for.

Virtual online vehicle purchases are governed by specific legislation
Buying a new car online from start to finish over the internet, instead of visiting retailer premises at any point during the purchase process, including for a test drive, is known as a “distance sale”. In this scenario, the sales transaction is governed by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. For example, when buying a vehicle on the internet, you have 14 days to return the car from the date of delivery if you change your mind, but it is important to bear in mind that there may be deductions for usage if you have driven the car before deciding to hand it back.

Electric vehicles are becoming more prominent
With petrol and diesel prices recently hitting record highs on forecourts across the country, buying an electric vehicle (EV) is becoming a more popular ownership proposition. With the number of electric models on the market increasing, there is far more choice in terms of budget, range, battery capacity and equipment. Before buying an EV, it useful to think about factors, such as where it can be charged – i.e. on the street or a driveway, and where and how you will be driving it, namely whether it will be used predominantly for short journeys and errands, or to travel longer distances.

New cars mean you can choose the specification
One of the main advantages of buying a new car straight from the factory, as opposed to one that is second hand, is that you are the very first owner. This means that you can choose the vehicle’s exact specification according to your budget and taste, including the interior and exterior colour, the size of engine (for a petrol or diesel model), or battery capacity and range (for an electric car), and whether the car is fitted with automatic or manual transmission, for example.

Tow the line
If you are looking to buy a vehicle to tow a trailer, horse box or caravan, for work or leisure purposes, it is worth asking whether accessories, such as a towbar and wiring, can be fitted to the model you are interested in, and to find out the maximum weight that can be pulled safely by the car. For first time “tow-ers”, or for those simply needing a refresher, training is available via providers across the UK.

You may have to wait for delivery
With fewer new cars being produced due to global component shortages, and semiconductor chips being one of the most in-demand parts, it is worth planning in advance in terms of when you would be looking to take delivery of your vehicle, as it could take several months for it to arrive.

Furthermore, there is the possibility that the date specified by the retailer on the order form may also change according to the manufacturer’s build schedule, so take the time to read any documentation and terms and conditions carefully to understand the implications of any timing changes prior to putting down a deposit. You may find that the specification that you have selected is not complete at the point of delivery. In most cases, this should be rectified as the parts become available, and the retailer should keep you updated about this.

Technology varies by make, model and fuel type
With the wide variety of makes and models on the market today, the way that in-car controls are used (i.e. via a touchscreen or manual dials, for example) varies by brand. The equipment which comes as part of the standard specification, and what is available as paid-for extras or options, can also be different.

With many elements of the vehicle now dependent on software and electronics to operate, it can be helpful at the point of purchase to enquire about any steps that need to be taken to keep systems up to date or be upgraded via recommended downloads, such as satellite navigation maps. Some downloads may be activated remotely via the manufacturer’s “over-the-air” updates, where no further action is required. In addition, there may be subscription services that, for the first year are included in the car, but then may incur a charge for future use. Some vehicle functions may be controlled via a smartphone app (e.g. for electric vehicles), so it is worth checking that your device is compatible, and that you will be comfortable using this kind of technology.

Warranties come as standard for new cars
The advantage of buying new is that, cars come with a manufacturer’s warranty as part of the purchase. These will vary in duration (i.e. three to seven years) or for the total mileage that is covered under the agreement (e.g. up to 100,000). Warranties are designed to cover the cost of rectifying mechanical failures that occur as a result of a defect during the build process. It is advisable to read the policy fully, to be up to speed with any exclusions, such as for wear and tear items, including tyres and brake discs.

It is also commonplace for manufacturers to provide paint and anti-corrosion warranties, although these will often be for a more limited period, whilst electric models may also come with a separate battery warranty for the retention of a percentage of its capacity for a specific number of years or miles.

On handover day, check and understand the vehicle
The day that you are handed the keys to your new car is often an exciting time. However, before driving off the forecourt, it is worth spending the time doing a walk-around with a member of staff, to ensure that you are satisfied with the interior and exterior condition of the car, that all documentation, including the handbook is present, and that you are comfortable with how any controls and systems work, as these can differ between models.

Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman, added: “Buying a big ticket item, such as a new car, is a significant commitment. It is therefore important that consumers spend time doing their research to select both the right car and retailer, spend within their means, and plan ahead both in terms of longer-term affordability, and when they will need a new car due to the extended lead times.”

How a bad credit score can cost drivers dear

Gareth Herincx

6 days ago
Auto News

Used MINIs

Having a poor credit score could end up costing you as much as £8,000 extra when financing one of the UK’s most popular cars, according to new research by Uswitch.com.

For instance, the best-selling Ford Fiesta costs £16,645 to buy outright. However, when bought on finance with a four-year repayment period, the total for someone with an excellent credit rating is £20,014 – or a staggering £7,059 more (£27,073 total) for a driver with a bad credit score.

The data was obtained by the comparison and switching service using a car finance calculator to determine the cost of 10 cars bought on finance for motorists with different levels of credit score.

Cost to finance the UK’s 10 most popular cars

Popularity rank Car Model List Price Finance cost with excellent credit rating Finance cost with fair credit rating Finance cost with bad credit rating Difference between excellent and bad credit score
1 Ford Fiesta £16,645 £20,014 £23,673 £27,073 £7,059
2 Ford Focus £22,215 £26,778 £31,672 £36,221 £9,443
3 Vauxhall Corsa £16,815 £20,269 £23,974 £27,417 £7,149
4 Volkswagen Golf £23,360 £28,158 £33,305 £38,089 £9,931
5 Vauxhall Astra £19,185 £23,125 £27,352 £31,281 £8,156
6 Volkswagen Polo £17,355 £20,920 £24,743 £28,298 £7,378
7 BMW 3 Series £32,595 £39,290 £46,471 £53,147 £13,857
8 Nissan Qashqai £23,555 £28,393 £33,583 £38,407 £10,014
9 Toyota Yaris £19,915 £24,005 £28,393 £32,472 £8,466
10 Mini Cooper £27,115 £32,684 £38,658 £44,211 £11,527
Source: Uswitch.com – All prices correct as of April 2021

Plan ahead for a better credit score

James Andrews, personal finance expert at Uswitch.com, reveals how to improve your credit score to help you get the best deal when purchasing a car on finance: “Registering to vote, having bills in your name, keeping to 30% or less of your total available credit (per account) and not having a credit history can all impact your credit score.

“When financing a car, first check your credit report to see what your score is. Secondly, check what’s in there and that the information is accurate. Lastly, start taking steps to improve your score.

“Providing you make your payments on time, don’t apply for many new products in a short period (e.g six months), and keep a stable address, your credit rating should improve. In as little as four months you should see your scores start to improve and after a year you should be in a far stronger position.”

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