Buying Your First Car | AA (2024)

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    Skip to main content [Accesskey 'S'] Go to home page [Accesskey '1']Are you a business customer?

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    Get the best for your budget when buying a first car

    When it comes to buying a car,you really want one you can rely on.

    We recommend a sensible balance between style, comfort and reliability in your first car. It's easy to get sucked in by looks and gadgetry, but don't forget the basics.

    Choose the car you need and can afford

    Make a checklist of the things that are really important to you.

    Don't underestimate the cost of car ownership. Besides buying the vehicle itself, make sure you're going to be able to afford the cost of:

    • Car insurance.
    • Car tax.
    • Routine running and maintenance costs(fuel, servicing, MOT).

    You canuse hire purchase -a loan secured against the vehicle - meaning you don't own ituntil you've made the final payment. Some dealers may offer 0% interest on the installment payments for certain models. Do your homeworkand only borrow within your means.

    We can help you drive away in the car you want:

    • Get a personal car loan from us.

    Whatare the safest cars for new drivers?

    Generally, the newer the car the safer it is - both in terms of how well it protects you if you're involved in an accident,and the features it has to preventyou from getting into trouble in the first place.

    Anti-lock Braking Systems (ABS), Electronic Stability Control (ESC) and Auto Emergency Braking (AEB) are all features to look out for if you're buying your first car.

    Euro NCAP's crash tests and safety ratings are the best guide to finding a safe car. Butthey change their test regime and rating system every few years, so you can only really compare their star ratings between car models of a similar age. For example, a 4-sat vehiclefrom 2015 is likely to be considerably safer than a 4-star vehicle from 2000.

    Should you buy a new or used car?

    When it comes to getting yourfirst set of wheels, the mainquestion is whether you should buy new orused.

    Benefits of buying a used car:

    • Less expensive to buy – used cars are cheaper than new carsof the same model.
    • Someone else has likely already taken the depreciation hit - cars start to lose value as soon as they’re driven out of the showroom. And after 3 years on the road,a used car is worth around 60% less than its original price.
    • No waitingfor the car to be built and delivered.
    • You canfind a used car to suit any budget.

    Check out even more tips forbuying a used car.

    Benefits of buying a new car:

    • Warranties - you’ll have the reassurance of the manufacturer's warranty, which will cover the cost of any faults that may crop up in the first few years.
    • More finance options – you might be able to spread the cost over a period of time, making a new carmore affordable.
    • You'll get the latest technology.
    • Peace of mind - you'll have no doubts about how the car's been driven or maintained by previous owners.
    • Specification - you can choosewhat you want in terms of paint colour, trim, seat fabric and optional extras.

    Find a trustworthy seller

    The next thing you'll need to do(especially if buying a used car) is decide whether to go with a dealer or a private seller.

    Buying from a private seller could be cheaper, butusing a reputable car dealer is a safer way to buy a car. Thekey difference between dealer and private is the protection you get from the law when buying from a dealer. Ifanything goes wrong with your vehicle, you'll have fewer legal consumer rights with a private sale.

    At AA Cars we make sure all our dealers are reputable.

    • Browse and buyyour first car with confidence.
    • Have a look at our expert tips.

    Other benefits of using AA Cars:

    • We don't have any write offs on the site.
    • We don't list any stolen cars.
    • All cars come with free 12 months' basic breakdown cover.
    • If anything goes wrong, we'll help resolve any issues you've got with the car or the dealer.

    Do your due diligence before committing

    Important facts to knowabout the car's history include:

    • The car's age, service record, mileage and MOT history.
    • The number of previous owners.
    • Any modifications or repair work.
    • Any functions or features that aren't in full working order.

    If you're happy with the points above,you should take the car for a test drive.

    • Make sure you can adjust the seat to give you a comfortable driving position,the controls are within reach, and you can seeclearly in all directions.
    • Check that the dashboard controls are all working -from warning lights to the sound system.
    • Check that the steering, braking, acceleration, clutch operation and gear changing are all easy to do and nothing 'sticks'.
    • Test drive the car on the sorts of roads you regularly use. There'slittle point in a test drive around a few city streets if you spend most of your driving time on motorways.

    Finally, before going ahead with a purchase,you absolutely must:

    • Check the vehicle's registration document (the V5C or log book).
    • Check that details including VIN or engine number match those on the car.Dealer stamps might be in a separate booklet, stored digitally in the car or held online by the dealer.
    • Check that thevehicle's handbook is present - itcan be costly to buy if it's gone missing.
    • Confirm any warranty from the dealer.
    • Get the full terms of the deal in writing.
    • Rememberyou'll need to tax the car before you can drive it away.

    If you do decide to buy privately,we can help you with:

    • Our useful car buyers guide.
    • Advice for buying a used car.
    • An independent vehicle inspection.
    • A car history check.

    Car insurance for new cars

    Most new cars are assigned to an insurance group – a rating between 1 and 50 -that indicates the level of risk as seen by the insurers. Insurance group ratings are advisory – insurers don't have to follow them, though most do.

    Insurers take many factors into account when setting premiums, but with all else being equal, the lower the group number the lower the insurance premium should be. This means that the insurance group can give you an idea of relative insurance costs when comparing different models.

    Cars in group 1 and 2 are generally small city cars suitable for new drivers, such as Ford Ka+, Nissan Micra, Volkswagen Up, Smart Forfour, Toyota Yaris, SEAT Ibiza, and Vauxhall Corsa.

    It's not all about the size of the car though. Engine size and trim level choice can also make a difference to how much your insurance costs.

    You can't choose a car on its insurance group alone, but you should always check the insurance group for the car you want and get aquote before buying it.

    Ready to learn to drive?
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  • Buying Your First Car | AA (2024)

    FAQs

    How much money should I put down for my first car? ›

    If you're financing a car, make sure you can put down at least 20 percent of the car's price or you'll probably end up owing more than it's worth. If you can't afford to put down the 20 percent or pay off the car in 48 months, don't buy the car.

    Is $10,000 too much for a first car? ›

    For your first car, you can spend an average of $5000 to $10000. Most first-time car buyers can't afford a car worth more than $10000, and it's risky to purchase a vehicle costing less than $5000 as it cannot be relied upon. Auto loan payments will not be unmanageable for you anymore.

    How much should a 17 year old spend on a car? ›

    To give you an idea of pricing, the average new car sold for nearly $45,000 in May 2022. Just because it's their first car doesn't mean it needs to be their most expensive one, which is why many parents opt for used cars. Based on that approach, anywhere from $5,000 to $20,000 is generally recommended.

    What is the 1st thing you do before purchasing a car? ›

    Apply for preapproval.

    Compare auto loan interest rates with at least three lenders. It only takes a few minutes. A loan preapproval gives you the negotiating power of a cash buyer and shows the dealership you mean business.

    Is $5000 enough for a down payment on a car? ›

    How much should you put down on a $25,000 car? For a $25,000 car, consider putting down at least $2,500 if it's used or at least $5,000 if it's new. By putting 10% or 20% down depending on the car's condition, you'll have the best options for loan terms and interest rates.

    Is $2000 enough for a down payment on a car? ›

    How much should you put down on a car? A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan.

    Should your parents buy you your first car? ›

    There is no right or wrong answer when it comes to this question. Some parents might choose to buy their kid their dream car, while others might encourage their kid to save and buy their own car. Others might suggest that they split the car costs and meet in the middle.

    Should kids pay for their first car? ›

    Additionally, Cummins points out that buying a car for your kids can lead to them taking it for granted. “When you choose to let your child pay for everything, that will teach your child goal-setting, managing their finances, working hard and taking care of their assets,” Roberts said.

    How to buy a car for beginners? ›

    How to buy your first car: 7 steps to make it simple
    1. Determine how much you can afford.
    2. Save for a down payment.
    3. Take a look at your credit history.
    4. Decide what car is right for you.
    5. Prequalify for financing.
    6. Head to the dealership — in person or online.
    7. Negotiate.
    May 31, 2024

    Who has the best first time car buyer program? ›

    Best Car Loans for First Time Buyers of 2024
    • Best for Most Borrowers: AUTOPAY.
    • Best From a Big Bank: Chase Auto.
    • Best for Military Members: Navy Federal.
    • Best for Online Experience: Carvana.
    • Best for Buying Used: CarMax.

    What to know as a first time car owner? ›

    • Check out the owner's manual. Few people bother to read it unless they're forced to, but this is a mistake. ...
    • Use your common sense. Be alert for any unusual noises, smells, or fluid leaks. ...
    • Check tire pressure. ...
    • Pay attention to the paint. ...
    • Be a serious scheduler. ...
    • Join a club. ...
    • Renew the wipers. ...
    • Keep your papers handy.
    May 16, 2024

    How much should your first car payment be? ›

    NerdWallet recommends spending less than 10% of your take-home pay on your car payment and less than 15% to 20% on car expenses overall.

    Is $1000 enough to put down on a car? ›

    It's widely advised to put down at least 10% of the vehicle's value to increase your odds of getting approved for a loan, and to minimize your interest charges. If you want something more pricey than $10,000, you may need more than $1,000 down, but this depends on your individual situation.

    How much money should I put down on a new car? ›

    How much should you put down on a car? One rule of thumb for a down payment on a car is at least 20% of the car's price for new cars and 10% for used — and more if you can afford it. These common recommendations have to do with the car's depreciation and how car loans work.

    What is a realistic down payment for a car? ›

    The typical down payment on a car ranges from 11% to 20% of the car's value. The credit bureau Experian says a 20% down payment might help shield you from depreciation. Depreciation refers to the ever-shrinking value of your car. The value of a new car declines about 20% in just the first year.

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