First car. Buy, lease, hire , finance? Help

David_VI

David_VI

David_VI

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Joined
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Colchester
I'm not a car person I know nothing.

I learnt to drive 3 years ago in a diesel fiesta and used to drive my ex's KA to my old job.


Currently I'm back with my parents saving for a mortgage deposit, doing my mainline train driving training. I cycle about 20 minutes to work all hours which sometimes is horrible with weather!
I suppose I want some independence back, be able to drive to work and go out and about on my time off without relying on trains.

I know nothing about cars. All I know is I want one that's good value, good for tall people ;) and has bluetooth so I can listen to music.

Could I have some help and advice regarding the best option for my situation? I dunno if it's better to lease, get a second hand car or new on finance. How much could insurance be?

Thanks
 
Second hand Mondeo
15 year old AMG Merc
Brand new poverty spec 3 series diesel on finance


Typical OcUK responses out of the way, do you actually have a budget?
 
If you are saving for a mortgage I'd imagine the priority is getting as much into your savings pot as you can, thus paying out monthly to borrow a car is likely a daft idea.

Get something simple, cheap, relatively economical, but above all known for it's reliability. Find something with 12-months MOT and you're set for a while (barring preventative maintenance and running costs obviously).

You can add bluetooth relatively cheaply to almost any car, so I wouldn't get hung up on that.

As above though, try to come up with a fixed budget, preferably something you can pay for outright.
 
How long is it going to take you to save for a deposit?

Having a car on finance won't do you any favors come mortgage affordability time.

I would buy a cheap fiesta.
 
I don't really have a budget yet as I have no idea on what kinda prices I'd be looking at with regards to if I bought on finance or leased or second hand, taking into consideration tax, running costs and insurance.

I'm not spending much at the moment and I don't have bills to pay as I'm with my folks so. I can budget around 200 a month and in Sept I have an extra payday so around 1500 I could use.
 
For the time being I'd be getting a smallish cheap hatchback. Distance to work sounds reasonable so it doesn't sound as if it's too far. Get your priorities right and continue to save for a mortgage. As a train driver once qualified you should be on decent money and then you can rethink things etc. Don't be tempted to get anything on finance at your age when saving up for mortgage and whilst technically training (what if God forbid something doesn't work out and you get stuck with needlessly high monthly payments). Just my 2p. Have you got a budget in mind?
 
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David_VI said:
I don't really have a budget yet as I have no idea on what kinda prices I'd be looking at with regards to if I bought on finance or leased or second hand, taking into consideration tax, running costs and insurance.

I'm not spending much at the moment and I don't have bills to pay as I'm with my folks so. I can budget around 200 a month and in Sept I have an extra payday so around 1500 I could use.
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Just to give you an idea of typical running costs. I bought a 52 reg Mondeo in 2015 for £990 (overpriced but I was in a hurry and needed it locally) and the first year cost me £1965. That's everything else - fuel (petrol and 8100 miles~), tax, insurance (this is likely going to be a bigger cost for you), and maintenance. It needed 4 new tyres and some oil.

To get it through it's MOT this year, it needed ball joints, track rod end, and front discs and pads doing - about £300 including the service, an aircon recharge and alignment. I plan on running it for another year and seeing whether it'll get through the next MOT without needing any work done. If my mileage stays the same, it should cost me about £2200 for the second year, all in, due to the maintenance.

A lot of people only see the purchase price of a car and forget about everything else, but it all adds up.
 
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shadow_boxer said:
For the time being I'd be getting a smallish cheap hatchback. Distance to work sounds reasonable so it doesn't sound as if it's too far. Get your priorities right and continue to save for a mortgage. As a train driver once qualified you should be on decent money and then you can rethink things etc. Don't be tempted to get anything on finance at your age when saving up for mortgage and whilst technically training (what if God forbid something doesn't work out and you get stuck with needlessly high monthly payments). Just my 2p. Have you got a budget in mind?
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I've been a driver for two years but only depot driving, on 26k, the training at the moment is the promotion to mainline which isn't exactly a pass or fail. Im still on the 26K but it will go up around Nov/Dec to 38K then 46k about a year after. So all in all its pretty secure except for the risks all of us have potentially screwing up.

I budget pretty well using YNAB but haven't planned for a car so buying second hand would require saving or waiting for the 'mortgage free month' (Sept)because we get paid four weekly so 13 times a year meaning I have a payday that's not required for any monthly bills.

This is why I was thinking about the leasing idea as I hear it's pretty trouble free except for insurance and fuel?
 
MichaelAwkward said:
Just to give you an idea of typical running costs. I bought a 52 reg Mondeo in 2015 for £990 (overpriced but I was in a hurry and needed it locally) and the first year cost me £1965. That's everything else - fuel (petrol and 8100 miles~), tax, insurance (this is likely going to be a bigger cost for you), and maintenance. It needed 4 new tyres and some oil.

To get it through it's MOT this year, it needed ball joints, track rod end, and front discs and pads doing - about £300 including the service, an aircon recharge and alignment. I plan on running it for another year and seeing whether it'll get through the next MOT without needing any work done. If my mileage stays the same, it should cost me about £2200 for the second year, all in, due to the maintenance.

A lot of people only see the purchase price of a car and forget about everything else, but it all adds up.
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Thanks for your reply, it's really helpful. I'm guessing a newer car would be cheaper to run but more cost to start with?
 
David_VI said:
Thanks for your reply, it's really helpful. I'm guessing a newer car would be cheaper to run but more cost to start with?
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Yeah, depending on the car. I get 38MPG out of the Mondeo and tax is £270 a year, so that's two areas where a newer car that's more expensive up front would be cheaper in the long term. Unless a car is brand new though, you'd still have maintenance costs and they may be more than my example depending on the car. The Mondeo is relatively simple and cheap to fix.

You need to weigh up the overall cost over a suitable period (5 years for finance usually, 2/3 years for a lease).
 
Adam said:
Buy and buy something cheap.
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Totally agree- had a car on finance before buying my first house, sold it, paid the finance off and got a cheap polo which I ran for a few years.

You're better off having no finance payments etc when it comes to getting a mortgage & the more you can save up front the better offer you get, and the less you pay over the term.
 
I'd be asking friends/family/work colleagues as a car with a known history really helps at the cheap end of the market. Also if it's "just for transport" then don't get hung up on make/model etc., you just want something cheap and reliable for your first car that helps with insurance costs when you want to upgrade to something better.

Insurance wise I've looked on Autotrader before and used reg numbers of some of the cars I've been considering to get a quick quote on the comparison sites, this will give you an idea of what the insurance costs will be.
 
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Do what I'm doing - Save up for a Golf.... or maybe even a Polo.
You can pick them up for £5-800 in jolly decent sub-200k condition, parts are cheap and plentiful, running costs are good and they're very reliable if looked after.
The kicker is that tax and insurance will likely double your expenditure, but you've been driving longer than me so I'd think you'll still see change from that £1500.

Heck, you could almost buy an entire second car for any parts you might need!
 
ttaskmaster said:
Do what I'm doing - Save up for a Golf.... or maybe even a Polo.
You can pick them up for £5-800 in jolly decent sub-200k condition, parts are cheap and plentiful, running costs are good and they're very reliable if looked after.
The kicker is that tax and insurance will likely double your expenditure, but you've been driving longer than me so I'd think you'll still see change from that £1500.

Heck, you could almost buy an entire second car for any parts you might need!
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Cheers for the advice! Looking on Autotrader and prices seem alright.
Not sure about insurance though as I only drove for about a year and part of that involved a scrape that was my fault when on provisional, a few years ago now.
I suppose that'll affect it!

What kinda insurance are you paying?
 
Picked a Golf and tried an insurance quote. Problem is it wants to know about any previous claims. The scrape I had was in my ex's car in 2014 on a provisional and only slightly damaged the side of another car, I have no records of it and no contact with her whatsoever, how does this work? If I phone them can they 'find' it?
 
Insurance is different for everyone, as it's based on so many factors, such as where you live, age and occupation.

Best bet is to find a few cars you like the look of, and run some quotes on compare the market or the like.

I'd suggest something small and cheap really. Polo or Golf, or Focus or similar. Small-ish engine. You're still new to driving, so you don't want some luxo-barge you couldn't park.

Most slightly cars you can buy a cheap headunit for £100 or so that'll give you bluetooth and usb connections. So don't discount cars because they don't already have bluetooth. Or you can retrofit a Parrot system (but, if I'm honest, I hate it in my Golf, much rather have it in my head-unit).

You said you'll have a £1500 windfall next month? I'd set that as my budget. You don't want to spend too much on a new motor when your so relatively inexperienced. We all like to think we are the best drivers on the planet, but everyone messes up sometimes, and usually when they start driving. Much rather scrape a £1500 motor than a £15,000 motor.
 
David_VI said:
Picked a Golf and tried an insurance quote. Problem is it wants to know about any previous claims. The scrape I had was in my ex's car in 2014 on a provisional and only slightly damaged the side of another car, I have no records of it and no contact with her whatsoever, how does this work? If I phone them can they 'find' it?
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I assume it was claimed on insurance? If your being completely truthful, it would be a fault claim, and aon whatever month / year. Unknown cost if they ask. That's basically all the info you need. You don't need specifics.
 
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