The honest first-time buyer's guide to your first used car

Budget for the whole year, not the purchase

The car is maybe 60% of your first year. First-year insurance for a 17–20-year-old under a non-black-box policy is £1,500–£2,500, even on a sensible car. Tax, fuel, an MOT, basic maintenance and the inevitable one unexpected thing adds another £1,500. Plan for £3,000 of running costs on top of the purchase price.

Insurance group is the number

Insurance group 1–10 cars (Yaris, i10, Fiesta 1.25, Polo 1.0) will save you more than any clever negotiation on the purchase price. A group-15 car (small hot hatch, old 3 Series) will cost £600–£1,000 a year more to insure, every year.

Avoid the modification trap

An 06-plate Fiesta ST for £3,500 sounds like heaven. Insurers catch lowering springs, aftermarket wheels and remaps and quote accordingly — often a refusal. Stock is good. Modified is trouble.

What to actually buy

Three tiers.

• Absolute cheapest: 2013–2016 Toyota Aygo / Citroen C1 / Peugeot 108 — same car, sub-group 4 insurance, bulletproof, parts everywhere. £2,500–£4,000.
• Best overall: 2016–2018 Toyota Yaris 1.0 petrol — group 2 insurance, fuel efficient, Toyota reliability, decent interior. £4,500–£6,000.
• If you want something slightly more grown up: 2016–2017 Hyundai i20 1.2 — group 5 insurance, five-year warranty potentially still applicable, drives like a bigger car. £4,000–£5,500.

What to skip

Anything with 'sport' or 'turbo' in the trim name. Any German brand under £5k (servicing alone will hurt). Anything with an unusual history — more than three owners, cat markers, long gaps in MOT history. The boring-and-honest car is the correct first car.