Should a 17 year old buy a new car for their first car?

[Jamie7399]

Hi all,

I'm soon going to be turning 17, and taking driving lessons & test.

My background: I currently run my own business which earns me a significant amount and allows me to live comfortably. I will be completing an apprenticeship (as it's the law to stay in education until 18) for an A Level and an extra salary so the money wouldn't be an issue.

At the moment, I'm looking at getting a car on business lease (not finance) where I get a new car every 24 months and just pay a monthly amount of £220 (which is incredibly doable in my situation). That's for a brand new Mercedes A Class AMG Line. It's been my motivation to work hard for so long and now I'll be in a position to have it.

As the money isn't an issue with leasing/insurance etc, I wanted to ask for some opinions from parents & drivers of different ages:

• Should a 17 year old have a brand new car for their first car? (If not, why not?)
• What are your thoughts on leasing? (Yes, I know I will not own the car, however it's 24 months contract meaning I will pay £6,400 over two years when in two years a brand new A class will have lost £11,000 in depreciation so it's the best option for a new car)

Don't you have to be 18 to lease a car ?

Don't you have to be 18 to lease a car ?

Yes, so that's that problem solved.

Be wary of mileage allowances with lease cars. My nephew leased a car and used his allowance up within 9 months driving to and from work. It was a 2 year lease, so he ended up buying himself a motorbike for work in the end!

I wouldn't. Its wasted money really.

As a new driver you will inevitably have the odd scratch/bump while in your first few months driving. My DS managed to bump several times into trees/cars/hidden mounds/walls in his first year driving. Had he been driving a new car on lease that damage although fairly minor would have massively impacted on the value plus the repairs cost in addition. His excess was more than his insurance at £1,000. He would have been entirely responsible for the repair costs. (£700 for a tree scratch on the side for example).

I'd aim for that new car once you have got to grips with driving. Don't assume that you have plenty of money so cost isn't an issue. You never know what will happen in your future. Buy a nearly new car instead and put money aside for a rainy day.

Normally I'd say absolutely no way, but you're paying for it yourself (if you can get a lease car at 17, as Anasnake queries) which makes a difference. How heartbroken would you be if/when you prang it? I don't mean a dramatic car crash or running it off the road, but ime new drivers (I include myself, and I was 36!) will dunt a door, hit a bollard, scrape the alloys on the kerb... None of which matters in an older car, but would a) cost a fair bit to fix and/or take a lot off the value of the car and b) potentially send your insurance even further through the roof.

In your situation, I'd buy a decent used car for at least the first year you're qualified, and let it take the knocks.

Congratulations on your business, btw, good to see young folk succeeding!

Never, ever buy a brand new car for a new driver. Let him have a second hand car. Doesn't matter if it gets damaged then whilst he's still learning.
Just because he's passed his test, doesn't mean that he's perfect and there's nothing worse than damaging a nice brand new car!

You sound like you have your head screwed on right. If I was yourself, I would save the money and buy a cheapish car outright. Just make sure you have someone with you who knows about cars so you aren't buying a piece of junk that will need fixing constantly.

That way after you've passed your test, you're not worrying about scratching/dinting a very expensive car. My first car was a Ford Ka, it wasn't an old knackered model but it did the job. It got me used to being in control of a car and aware of how big/small it was. Then I stepped up to a VW Golf, then more recently a new Mazda.

They might not let you for insurance reasons as you've just passed your test.

Check what the costs would be if you had a ding. I don't have a problem with leasing, it's not a bad way to get a good car TBH, but depending on insurance they can be more expensive for minor damage.

In some ways you could argue that a brand new car is a good idea because it will have newer safety features etc which is the main worry with new drivers. At the same time, how sensible are you honestly? If the car has power, it's best not to use it until you've had some real experience, which you don't get just by taking driving lessons and the test, you only get this from driving over a period of time. Experience enables you to more accurately predict the behaviour of other motorists so whether a move is safe or not. It would be a shame to get a car with a powerful engine but not realistically be able to use it, and would you really resist the temptation?

There is lots of time for fast and flashy cars, it doesn't have to be your first one, though I understand the appeal.

What will your insurance be?

I don't think it would be good value for money, owing to the high chance of damaging it whilst learning or in your first year.

Earning loads of money is fantastic, but you should still look for value for money in your spending.

I would wait and see till you've actually started driving! You have no idea how hard you will find it or how much confidence you will have.
I wouldnt get a brand new car for my first car, just start with the usual small, cheap second hand car. That way you don't have to worry too much about getting little scratches on it etc. Which I actually think makes it easier and you will have more confidence.
When you are more confident as a driver you can get the car you want

The insurance for a 17 year old new driver on a Mercedes A class would be completely HORRIFIC. I would honestly avoid a new car altogether, lease or otherwise, until you've been on the road for at least a year or two. Find yourself a serviceable, low powered runabout and save some money up ready to replace it after a couple of years.

You're under 18 therefore not allowed any kind of credit agreement.

Also 200+ bhp in the hands of a newly qualified driver is a bit scary tbh.

Just to say, well done for starting a business so young! And a successful one!

Oh I see you've said the insurance wouldn't be an issue money wise - regardless, chucking away a couple of grand on insurance for a car you're likely to damage/at worst write off in the first year of ownership isn't value for money imo.

You often get insurance/servicing etc included on business lease deals so if you can, if definitely do it as it may well turn out to be the cheapest way to run a car.

I don't see the point in having a new car straight away when your insurance premium will be ruinous, have a cheaper older car now and build up your no claims so that you can have what you want when the insurance is more affordable.

Off topic but I'm interested in an apprentice that leads to an A level, I thought they were for more vocational qualifications, one of my dcs will be making decisions soon about what to do after GCSE and I haven't come across that before, it sounds like something that could be suitable, does it have a specific name?

No they shouldn't- think of all the wheel scuffs and little bumps into things

£220 a month probably wont give you much of a mileage allowance. Plus theres that horrid moment when it goes back and you get charged for every single hairline scratch. Id also be very surprised if any insurance company would touch a newly qualified 17 year old driver with a Merc. None of this matters though as you have to be 18 to lease a car unfortunately.

At 17, first car, Id be getting a little run around, couple of years old. Gives you time to ensure your makeup/juice/green tea etc business (assume its that) is going to be a consistent earner before you lumber yourself with any real debt.

Around £4,000 for a 1.6l A Class (Smallest engine I could get)

I was thinking that aswell Sandy.

yes OP off topic slightly but Im interested in that too, my niece is looking for an apprenticeship but they are all for vocational qualifications, she'd be really keen on an apprenticeship that leads to an A level but they dont seem to be 'advertised'.

Really helpful advice, thank you.

It's a digital marketing agency actually haha :)

Thank you!

No colleges would do a Level 3 qualification in Digital Marketing/Social Media (The area my business lies in) so I have decided to do it as an apprenticeship. At the end, I'll get a Level 3 Qualification in Digital Marketing. Level 3 is the equivalent to an A Level - here's a really useful table: www.dlcandtraining.co.uk/core/uploads/Level-3-Table-GraphicRevised-1024x275.png