A First-Time Buyer’s Guide: How to Purchase Your First Used Car After Passing Your Test

Passing your driver’s license exam and getting a full license is an exciting milestone that opens up new opportunities for travel and work. However, as a new driver, buying your first car can feel overwhelming. Many first-time buyers end up spending or choosing models that are not enough for them.

This guide will show you the process, from realistic budgeting to picking up a new car and processing documents.

Understand your budget and funding options

Before rushing to the dealer, set a detailed budget, buy what you can’t afford, and you’ll regret it later. Start by determining your current after-tax income and expenses. With this clear picture, you can think about how much you can spend on your car. Factors for initial price and running costs include fuel, insurance and services.

If you are planning to lease a new car, you will need to add in advance monthly rental costs and initial rental costs, usually equivalent to 3-9 months. Unlike deposits, it is non-refundable, Paying a higher initial rental will reduce your monthly payments.

Choosing the right car: factors to consider

The best models depend on your lifestyle and budget, but the vehicle you choose must be safe and reliable. Small cars are the cheapest to buy and run thanks to their low size engines and low repair costs, but they can be inappropriate if you travel a lot or need a lot of boot space.

Newer cars are safer with features like automatic emergency braking (AEB) and electronic stability control (ESC). Brand new vehicles come with the same technology as manufacturer warranty. You can choose from trim, exterior paint and seat fabric colors.

Used cars are cheap as previous owners have already been hit with depreciation. The second-hand market is huge and comes in budget and colour models. Depreciation helps lower premiums and make ownership more feasible. Lower prices allow you to buy a higher-end model than you can use a newer car.

Used Car Inspection: How to Find a Pretty

The online marketplace is a great way to view a wide range of manufacturers and models at affordable prices. If you are looking to a particular car, there are a few steps to make sure it’s a good purchase.

If you first registered in the UK after 2002 or more than 3 years ago, you can find the entire history of your MOT tests online. After entering your registration number on the government’s MOT check website, you can access details for each test. If you find some advisory memos that highlight potential issues, it’s worth moving forward.

After you decide you want to see it in personinspect its bodywork and chassis to ensure consistent panels and matching paint that indicates that you have not had an accident. The wheels and tires are in good condition, no cutting or bulging, and you need to pass 20p coins for a 1.6mm tread depth test.

Take it out for a test drive and see how it handles on the road. If the seller does not allow this, avoid buying a car. You can also use services such as HPI checks to ensure that your vehicle has not been stolen or that there is no outstanding finances.

Documents and legal considerations

When purchasing a car, you will need a VC5 (logbook) registration, a forwarded MOT certificate, service history, and a car manual. Update your VC5 using the DVLA online service and cancel your seller’s direct debit and vehicle tax. Before you legally return home, make sure your MOT certificate is re-taxed and insured.

Provide the seller with a driver’s license and proof of address. Once the transaction is complete, ask for a signed receipt specifying the make, model, registration, chassis number, engine size, purchase date, and payment amount.