First-time buyers 'more price savvy' – survey

A recent survey by insurance comparison website Confused.com reveals that first-time buyers are becoming more savvy about the cost of cars; looking at the full cost of motoring rather than just the initial purchase price. Cars are one of the biggest expenses that people make in their life time. However, people are having to compromise on the cars they drive. Big engines and car modifications no longer the new driver's prerogative, due to the cost of insurance and overall rising cost of motoring.

According to Confused.com’s research, motor car insurance is viewed as a ‘huge expense’ by 66 per cent of people. This is because the cost of an average comprehensive policy is £1,869 for women aged 17-20 compared with £3,635 for men.

Confused.com’s research showed almost 70 per cent of people chose their first car with an engine size of 1.3 litres or less, with 15 per cent of under 24s citing insurance cost as the main reason for choosing a care with a smaller engine.
To keep costs down, new drivers are opting for the Ford Fiesta, which was voted the most popular first car, followed by the Mini One, in the poll of 2,000 drivers (selected from a list of 52 different makes and models).

For a 17-year-old male to insure a Ford Fiesta Encore 1.3 litre engine, the insurance premium would cost on average £5,372.96. This compares with the cost for a first-time buyer purchasing a Volkswagen Golf GTI 2 litre engine, which would cost £12,144.75 for insurance cover.

Gareth Kloet, head of Car Insurance at Confused.com, said: “Car insurance is a huge purchase for young drivers. However, our research tells us that these drivers are adapting to pressures and opting for smaller, cheaper cars, in order to minimise their insurance premiums.

“Buying your first car is a really exciting purchase. For the first-time buyer, cost is an important factor with 50 per cent saying that price affects their purchase, and 35 per cent of first-time buyers paying £500 or less for their first car.”

To help young drivers, Confused.com advises them to first decide how much they can afford to pay for their first car; not just the sum to buy the car itself but also the running costs – insurance, MOT, vehicle excise duty, petrol, repairs and servicing.