Hi, my daughter is 17 in Nov. We had planned to purchase her a nearly new small car.
However, I am trying to work out whether that makes financial sense, versus adding her to my wife's insurance. My wife currently has a 1.6 Megane which we plan to change soon to a 1.4d Fiesta.
Can you lay out the pros and cons, and how to go about minimising cost.
Many thanks,
I Wilkinson, UK
Well Ian,
If you don’t buy a car, the saving on capital outlay rather trumps any clever angles I might suggest you work on insurance and choice of car.
Plus, your daughter’s cheapest way to insurance is to be a second driver on one of your cars.
So if you buy your daughter a car, as well as the lumpy up front spend (or finance repayments) the insurance will be more.
That said, if you can afford it, you will be a much more popular Dad if you buy your daughter a car. I am sure your daughter is working very hard at School or College, so if you possibly can, this is what I recommend you do.
If your daughter takes an advanced driving course that can help reduce the premium. As can letting her use the garage and leaving your car outside! You also need to get her something with a really tiny engine. Ideal first cars, that you may not think of, include: SmartforTwo, Kia Picanto and Suzuki Splash.