Buying a car is only part of the cost. You'll also need to budget for insurance, fuel, tax and maintenance.
Smaller used hatchbacks are often cheaper to buy, insure and run. The cheapest car upfront isn't always the cheapest to run. Some older cars cost more to fuel and repair than drivers expect.
Insurance is often one of the biggest first-year costs for young drivers. The price you pay depends on factors like your age, location, driving history and the car you choose.
Fuel costs depend on how much you drive, your car's fuel economy and current petrol or diesel prices.
The amount you pay depends on the car's fuel type and specification. Different versions of the same model can have different tax costs.
MOTs, servicing, tyres, repairs and breakdown cover are easy to overlook when you're budgeting. But they can add hundreds of pounds to your yearly costs.
Car insurance costs can vary, but younger drivers often pay more because they have less experience and haven't had as much time to build up a no-claims bonus.
The top 3 cheapest cars to insure for 17-20 year olds:
| Car | Average premium |
|---|---|
|
Fiat 500
|
£502 - £975*
|
|
Vauxhall Corsa
|
£1,018
|
|
Ford Fiesta
|
£1,019
|
*Variance in prices depending on the model
The top 3 cheapest cars to insure for 21-24 year olds:
| Car | Average premium |
|---|---|
|
Fiat 500
|
£392
|
|
Volkswagen Polo
|
£588
|
|
Ford Fiesta
|
£620
|
"Insurance group is the number most first-time car buyers forget to check. It can change your first-year costs more than you might think - and unlike the car itself, you can’t negotiate it down. Young drivers pay some of the highest premiums in the UK, so the people who save the most usually check this before they even buy a car or get an insurance quote."
A few common ones can cost you money or even invalidate your policy:
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