Wednesday, September 30, 2009
Category:
Personal Finance Tips
According to Confused.com, the Vauxhall Corsa is the most popular choice amongst new drivers when it comes to purchasing their first car.
Confused.coms’ research appears to indicate that the majority of new drivers are looking to invest in vehicles with smaller engine sizes. In fact, 20 percent were reported to have opted for a 1.2 engine, with 75 percent opting for an engine of 1.4 or below.
With regard to methods of payment, 40 percent were found to have purchased their first car with their own savings. A further 16 percent admitted to taking out a personal loan or credit card to attain their desired vehicle, and 14 percent were reported to have turned to their parents. The research also uncovered that females are 3 percent more likely to receive a car from their parents then males.
Confused.com points out that the tendency of new drivers to select smaller vehicles could be indicative of a lesser risk in relation to insurance, which may be particularly appealing to new drivers who are generally faced with higher premiums. Such cars are also significantly cheaper, which may also be attractive.
Head of Motor Insurance, Will Thomas, commented: "Corsa may well top the charts due to its status as a popular learner car but parents looking to buy a car for kids flying the nest to go to university this September would do well to remember these tips:
- Start with the classic small-engine run-around in order to build driving experience
- If the car is low-value drivers might wish to consider a TPFT policy, as young driver excesses may make the comprehensive cover a pointless exercise
- Typically, premiums will dip in price when drivers hit 25 but whilst they're waiting, building no claims bonus can lead to valuable discounts
"The best way to keep the costs down is by shopping around for cover, as not all insurance providers rate age the same way and some companies specialise in covering younger drivers. Price comparison is the ideal solution to getting the best price for the most suitable cover."
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Homeowners who are looking to invest in a car, but do not have the funds available to do so, could consider taking out a
secured loan to finance such a purchase. The car in question could be for a child that has recently passed their driving test, or perhaps for the family in general due to one car no longer being sufficient. One of many finance options available, a secured loan could even be used to make that dream car a reality.
