How Much Does it Cost to be a New Driver in 2021?
Whether you’re a newly qualified driver faced with steep insurance premiums, an engaged couple looking to balance budgets, or a prospective homeowner with savings on the brain, there is no getting away from it: major life events cost money.
But which of these key-stone moments has the priciest up-front costs? And how long will it realistically take to mark each one off on your ‘life goals’ list?
To put those precious premiums into perspective, we’ve pulled together a handy cost analysis comparing new drivers against other major life events – all so you can plan properly! Take a look at our findings, below.
How much do major life events cost?
On average, the first year of driving costs £6,098 in total, which includes those big purchases, such as a car and an insurance policy, as well as petrol for 12 months.
And while this might seem like an eye-watering amount of money for a young, newly qualified driver, it is a relatively low-cost sum when compared to other major life events.
Planning a wedding, for example, is more than three times as expensive as the first year of driving – and most of these costs must be paid up-front and in full.
The most expensive major life event, however, is the first time you buy a house, which isn’t much of a shock given the ever-increasing property prices. The real surprise comes from when you compare the average figure (£41,234) to the other life events. For instance, buying a house is a whopping 576% more expensive than the first year of driving.
In fact, even just the average house deposit (£38,194) costs more than all the other major life events (first year of having a first-born baby, first year of driving and organising a wedding) put together.
How long will it take me to save for major life events?
Using Nimble Fins’ estimations about average savings per month, we worked out that saving all the money you’d need for the first year of driving would take little over a year (13 months, to be exact). This is nearly double the time it would take to save for the first year of having a first-born baby (7 months).
The real financial patience is required for when you want to get married or buy a house. Saving to organise a wedding on average takes 4 years while getting on the property ladders takes approximately 7.6 years. For reference, you could save the money needed for the first year of driving six times over in the same timeframe you’d need to accumulate just a house deposit.
In total, to save up for all these major life events, you’re looking at 13.3 years of tight money management.
Want another way to save big with Vertu Motors? Just take a look at our range of brand new and used cars to set yourself up with a cost-effective motor. Whether you’re preparing for your first year of driving or are in dire need of an upgrade, browse our full range today.
Based on average household savings of £450 per month: https://www.nimblefins.co.uk/savings-accounts/average-household-savings-uk#savingspermonth