Should I buy my daughter a small car to learn in, and which one?

I currently have an 06 Audi A8 automatic, but my daughter is now learning to drive. Should I sell the Audi and buy a nice car for both of us, or buy her a small car? I bought my car in May for £21,000, where would I sell it for the best price? If I were to get her a small car, what age and model car would you recommend? We have budget of £6000 including insurance.

Asked on 14 September 2010 by Claire Bettley

Answered by Dan Harrison
She's best off with something small, safe and relatively cheap. If your budget for the car is £6000, you should probably allow £2000 for the first year of insurance (though it may not be as much as that, depending on where you live etc). Start off looking at these - most should be within your budget:

Here's a tip for getting insurance down: put yourself and/or other older family members down as named drivers, even if they don't plan to drive the car. It'll spread the risk to the insurer and - in theory - bring down the premium.
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