Upon passing your driving test, you will want to get out onto the road in your own vehicle as soon as possible. However, many young people who have just acquired their pink licence will struggle to do this – at least they will unless they choose to buy their car on finance.
As a great deal of young drivers will still be in apprenticeships, part-time work or full-time education, it is not easy to save up the money to buy a vehicle in one lump sum. Even the cheapest old second-hand cars will exceed many young people’s budgets. That is before car insurance too which is estimated to set you back around £2000 per year if you are a driver in your late teens or early 20s. This will be considerably more if you purchase a used car with high mileage – the most common choice for young people who have passed their test. Then there is the cost of running the car too; an expense that could be unfeasibly high if the car is old and needs semi-regular work.
In short: buying, insuring and maintaining a vehicle can put a significant financial strain on many young people. When you cost up the entire expense, it may even be utterly unaffordable for a new driver in their late teens or early adulthood to consider buying a car. This is why car finance for young drivers is such an attractive option if you have recently passed your test. Car finance essentially allows you to own a car without paying the full chunk at once. Instead, payments are spread over several months in bite-size amounts that can be as little as £40 per week in some cases. This means you do not have to spend years saving up whatever wages you earn to own a car.
Because car finance makes buying a vehicle more manageable, new drivers can also widen their horizons when it comes to browsing cars. They are not just restricted to old used cars with cosmetic damage, high mileage and prone to faults. Young new drivers may be able to afford a higher quality car for just a few pound a month more. This means that insurance premiums will be significantly lower in some cases and you should not have to worry about taking the vehicle for regular repairs. Once you have paid off the full sum and you are in ownership of the car, you may then be able to resell it at your leisure for a decent return.
Buying a car on finance allows young people who have recently passed their test to manage their money better; it makes vehicle ownership more feasible for those who aren’t currently in full time work; and it may even save you money in the long run once you consider insurance, repairs and reselling. It is a great alternative with many benefits.