MOTOR WARNING
Drivers warned they face shortage of cheap second-hand cars as fewer models go under £5,000
Plus tips to get cheap car insurance
BRIT drivers are facing a shortage of options for affordable second-hand cars, it has been revealed.
Major used car retailer AutoTrader found that affordable petrol and diesel cars under £5,000 are dropping quickly, leaving young motorists with fewer options to choose from.
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Data gathered by AutoTrader claims that stock volumes for cheap cars under £5,000 have plummeted by a whopping 75 per cent in the last few years - with just 24,359 up on the market.
It also found stocks for used cars under £11,000 have fallen by almost 50 per cent in the same time.
The new analysis suggests it could be a huge blow for young Brit drivers who often aim to buy a cheap, second-hand motor as they start their driving journey.
More than half of motorists between the ages of 17 to 24 had bought a car under £11,000, the reports.
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Erin Baker, Auto Trader’s Editorial Director said: "Car ownership and usage is vital to young people, but cost remains a clear barrier.
"They also show higher levels of interest in electric cars – but are less likely to be able to afford them, thanks to stock shortages caused by Covid. Those dynamics are only likely to be addressed over time."
The report also suggests that the situation is a result of the pandemic which severely affected the supply chain in the car industry.
And lack of models available has forced the prices of used cars to shoot up.
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And with the increase in car prices, insurance premiums are increasing as well.
Experts now fear that many young license holders could get priced off the road amid the soaring cost of second-hand motors.
But for those looking to buy a second-hand car right now, an expert has revealed the best three used motors for new drivers that are "super reliable" - and cost under £5,000.
YouTube presenters Adam Morris and Jim Hull shared three models that are ideal for cheap first cars.
Meanwhile, another motor expert revealed four ways to keep your second-hand car up and running for longer.
Following these expert tips could help you maintain your car for a longer time - and in turn save loads of repair money.
How to get cheap car insurance
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
It's a legal requirement to have car insurance, and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But there are several ways to slash your premiums.
Pay upfront
Insurers give you the choice of paying for insurance monthly or upfront.
Paying monthly spreads the cost of your cover but the insurer adds interest charges which means the average motorist pays around ten per cent more overall.
If you pay for your car insurance annually you don’t pay any interest.
A typical motorist can save up to £225 a year by paying in one go, according to comparison site MoneySuperMarket.
Increase your excess
The excess is what you agree to pay each time you need to make a claim on your policy.
You can usually choose your own excess when setting up a policy and it can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could bring the cost of your insurance down by agreeing to pay more if you do need to make a claim.
But before you hike your excess, make sure you would be able to pay in the event that you do need to make a claim.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, swapping your role from "chef" to "caterer" can save you £20, comparison site GoCompare found.
And changing your role from "fast food delivery driver" to "delivery driver" could save you £40.
But lying about your job could invalidate your policy so make sure any changes are legitimate and accurate.
Shop around
Not all comparison sites have the same range of insurers so to get the best price it’s a good idea to check two or three from Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check its prices directly.
You can also get a free cash bonus by going via a cashback site such as Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to the renewal date.
But you can buy your car insurance up to 29 days before the policy start date and 'lock in' the price you're quoted on that day.
A typical driver can save up to £265 buying new cover at least 27 days before their current policy ends, according to Go Compare.
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