How Much Does a First Car Cost?

The cost of new cars in the UK

Like any other commodity, the cost of new cars can vary enormously. Price will depend on things like the make, model and features of the car. On average, a new small car in the UK costs between £20,000 to £25,000. However, this figure climbs drastically for new cars in general, which are priced at more than £40,000 on average.

For obvious reasons, compact and fuel-efficient cars are usually the best bet for young drivers. Here are some popular new models:

Ford Fiesta – A longstanding favourite in the UK, the Ford Fiesta is zippy, reliable and excellent on fuel. New models start at around £19,000.

Volkswagen Polo – Quality construction and a focus on comfort make the VW Polo a great first car. Expect to pay around £20,000 for a new model.

Toyota Yaris – Hybrid versions of the Toyota Yaris start at about £21,000.

Kia Picanto – A budget-friendly option for new drivers, the Kia Picanto starts at around £13,000.

The cost of a used car

Buying second-hand is one of the best ways to save money when shopping for your first car. The average Brit spends just under £17,000 on a used car, but there are plenty of listings out there for much less. Here are some popular used models:

Ford Fiesta – Used versions of this zippy little bestseller can range from £5,000 to £10,000, depending on age and condition.

Volkswagen Polo – Expect to pay between £6,000 and £12,000 for a used VW Polo.

Vauxhall Corsa – Another popular choice for young drivers, used Corsas range from £5,000 to £10,000.

Fiat 500 – This stylish city car can be snapped up for between £4,000 and £8,000 if you’re happy to go pre-owned.

Extra costs to consider

Don’t forget, purchase price isn’t the only cost to factor in when budgeting for your first car. Here are some additional costs you’ll need to consider:

Insurance

Young drivers often face higher insurance premiums as they’re less experienced. On average, car insurance for a new driver can cost around £1,200 per year.

Road tax

The cost of road tax varies depending on the car’s emissions. Expect to pay between £100 and £150 annually for most small cars.

Fuel

Your fuel spend will depend on how much you drive and the fuel efficiency of the car. For reference, the average British motorist spends around £1,200 on fuel per year.

Maintenance and repairs

It’s best to set aside cash for expenses like regular servicing as well as unexpected repairs.

MOT

If your car is more than three years old, you’ll need to pay for an annual MOT test. Budget around £50 for this expense.

Unlock savings with My Car Credit

The best way to stretch your budget further? Partnering with an experienced broker. At My Car Credit, we pride ourselves on securing the best finance deals for young drivers, leaving you with more cash in your pocket.

Check out our handy online car finance calculator and start your journey to your first car today.