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Added: 18 May 2009
Last update: 18 May 2009

Question

Hi Matt,

I'm one of those people who moved to London quite young and got by using public transport without ever giving driving much thought. However, I've just passed my driving test at the ripe old age of 31. I'm now itching to buy my first car but I have no idea where to start. Can you give me some advice on what used car to buy? Here's all the useful information/criteria I can think of:

- Purpose: weekends and the odd evening. The occasional motorway trip to see family or go on holiday.
- Insurance: street parking in central London with me as the only named driver. Obviously my premiums are going to be astronomical but what are the things I can do to keep them down?
- Budget: I'm quite flexible on this, depending on whether I go for a bashed up oldie that's a bargain or something more reliable. Anywhere from £500-£3500; with one eye also on the insurance costs.
- Type: Again, I have no fixed ideas here. It's just me and my girlfriend at home - no kids, no dogs, no plans - so this might well be the time to get something totally impractical. I guess a small engine size is a must in order to keep the insurance costs down? Also, we're yuppie tree-huggers, so nothing too filthy. Something like an old mini or fiat 500 might be great.

Everyone keeps telling me that there are loads of bargain cars to be had right now. I'd be really grateful for any pointers.

Thanks and best wishes,
Matt, London, UK
 

Answer

Hi Matt

If the Government introduce a scrappage scheme, it’s worth you buying a bashed up oldie for £500 on the Monday, trading it on Tuesday for £2,000 Government subsidy and buying a new car for £5,500. Although that would limit you to an unbelievably small Chevrolet and, well… that might be it actually. Even then you’ll have to haggle.

The great thing about something like a Chevrolet Matiz though, is the little engine is, as you rightly guess, the easiest and most effective way to cut your insurance premium.

The downside is that on motorways a little car can leave you feeling under attack. Also, I don’t know your personal dimensions – impertinent of me to ask a Times Reader really - but if you are big chap (like me) you may feel like a complete twerp in such a small conveyance.

So I would also look at the Seat Ibiza with the 1.2 engine (which means tiny insurance group 2). Your budget will buy a nice 2003 year car and it has a bit of presence and space.

Enjoy your motoring,
Matt

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