Can you recommend an economical car for a 21-year old for under £5000?

I am looking to buy my first car. I'm a 21-year-old female and have had my driving licence since 2008. My budget is maximum £5000 to include insurance as well. I'm looking at the Volkswagen Urban Fox, 2006, 34,000 miles, petrol, with a 1-year warranty, and I found one for £4,499 but I think this is slightly overpriced? If not then a Volkswagen Polo, Toyota Yaris or Aygo. The other options are Vauxhall Corsa or Ford Fiesta, but I believe that these do not hold their value as much and insurance can potentially be high because of popularity. I'm looking for a reliable car with low running costs, around 4-5 years old with a low mileage. Also something potentially very 'green' so the tax is low. I wondered if you could offer your advice?

Asked on 23 June 2011 by ES, Marlow, Bucks

Answered by Honest John

Cars: Citroen C1, Fiat Panda 1.2, Nissan Pixo, Peugeot 107, Suzuki Alto, Toyota Aygo. Insurance - probably best to make the youngster a named driver on an adult policy, but the adults HAVE to regularly drive the car or this will be deemed to be fronting. Smartbox policies seem to be cheapest.

Young driver insurance based on mileage and in monthly instalments (using smartbox telematics to check on driver behaviour): www.insurethebox.com . Young driver car and insurance packages: www.youngmarmalade.co.uk . Young Learner driver insurance to practise in a family car up to IG16/20 at £90.95 to £99.50 a month according to postcode, without affecting the insurance of the car owner: www.provisionalmarmalade.co.uk . Young Driver Insurance: A policy suited to 17-25 year old, discounted by up to 40 per cent as the car must not be driven between 11pm and 5am. www.i-kube.co.uk

Tags: insurance telematics young drivers cheap road tax

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