Buying Your First Car: How to Find the Perfect Vehicle for Your Start

Owning your first car is a big step towards adult life. A car makes you mobile and independent and often supports you through your education and early professional years. Perhaps your parents or grandparents are financing your first vehicle. Maybe you’ve worked for several years to afford both your driver’s license and a used car. Either way, your first car will later hold sentimental memories. These are good reasons to not take this decision lightly. At CARIFY, we’ll show you what to focus on when making this choice.

What Should You Consider When Buying Your First Car?

The dream of owning a flashy sports car is out of reach for most new drivers. In reality, it often comes down to a compact car. This also has advantages in terms of running costs, which you may not yet fully consider as a beginner. With our checklist, you’ll make the right decision.

Setting a Budget and Exploring Financing Options

How much should your first car cost? As a new driver, you likely have a limited budget. Set a clear upper limit that you will not exceed. Did obtaining your driver’s license already take a big chunk out of your savings? There’s also the option to finance your first car. With both bank financing for a new car and leasing, you pay the vehicle price in monthly installments.

But caution is key! Consider whether you can afford these monthly payments long-term. They add to the vehicle’s running costs, and financing involves a long-term commitment. If the car no longer meets your needs and you want to switch, it can become problematic. For leasing or a bank loan, you must be at least 18 years old and have good credit.

New or Used?

Whether you can afford a new car primarily depends on your budget. For beginners, a used car isn’t a bad option. If minor damage like scratches occurs, the consequences aren’t as costly. However, used cars may require expensive repairs sooner. New cars typically only need maintenance in the first few years and rarely require replacement parts. On the other hand, new cars lose the most value within the first two years.

Here’s a comparison of relevant aspects:

Choosing the Right Vehicle Class and Engine

A sports car or SUV may look impressive but can be difficult for beginners to handle. Compact cars are easier to maneuver into parking spaces. Choosing a smaller vehicle and modest engine size helps reduce running costs. The heavier the car, the higher the annual vehicle tax.

If you opt for an electric vehicle, some regions offer tax reductions or exemptions. Liability and comprehensive insurance are also cheaper for small cars, and they consume less fuel. Some insurers even provide eco-bonuses for electric vehicles, lowering premiums. This makes compact electric cars an ideal choice for your first vehicle.

However, your vehicle class must suit your mobility needs. If you often transport bulky items, you’ll need a car with ample cargo space.

Safety and Reliability as Top Priorities

Unfortunately, new drivers are frequently involved in accidents. Lack of driving experience, distractions, and overconfidence are common causes. Therefore, it’s crucial for your car to be safe and equipped with modern assistance systems that alert you to dangerous situations.

Key Safety Features for New Drivers

Some assistance systems are now mandatory for new cars in Switzerland. However, not all used cars have these features. Ensure your first vehicle includes the following systems:

• ESP (Electronic Stability Control) – helps prevent the vehicle from skidding.

• ABS (Anti-lock Braking System) – prevents the wheels from locking when braking.

Reliability of Different Car Brands

Well-known car brands have the advantage of long-term availability of spare parts and are often more reliable than lesser-known manufacturers. The following car brands are known for their reliability:

• Toyota

• Volvo

• Honda

• Volkswagen

Considering Running Costs and Insurance

One of the most important criteria when buying your first car is its running costs. These include fuel consumption, vehicle tax, and insurance premiums. Service and maintenance costs, as well as tire changes in spring and autumn, are often overlooked.

How to Minimize Running Costs

The ongoing costs of a first car are often underestimated. Your budget can quickly reach its limit if repairs are needed in addition to taxes and insurance. To ensure you can truly afford your first car, here are some tips to lower running costs:

• Choose a compact car – vehicle tax increases with weight. Compact cars have lower insurance premiums and consume less fuel.

• Opt for an electric vehicle – many regions reduce or waive vehicle taxes for electric cars. Insurers offer eco-bonuses, and electricity is cheaper than fuel.

• Consider brand and age – some car brands are less prone to breakdowns. As cars age, the risk of expensive part replacements grows.

Finding Affordable Insurance for Young Drivers

Insurance premiums for new drivers are particularly high because they’re more frequently involved in accidents. Both liability and comprehensive insurance cost more. Here’s how to find cheaper insurance:

1. Drive carefully: Avoiding accidents will reduce your premiums over time as your no-claims bonus improves.

2. Take safety training: Some insurers offer discounts for completing driving safety courses.

3. Use comparison websites: Online platforms allow you to compare providers and find the best rates.

4. Ask about family discounts: Check if your parents’ insurer offers family discounts.

5. Adjust deductibles and coverage: Higher deductibles lower premiums but increase costs in the event of a claim.

Car Subscription: A Flexible Alternative

If your budget isn’t enough to buy a first car, consider CARIFY’s car subscription service. It’s flexible, and you don’t need to make a down payment.

What Is a Car Subscription and How Does It Work?

A car subscription is like a long-term rental. You can choose a duration between 1 and 48 months, during which the car is exclusively yours. You simply pay a monthly fee that includes all running costs.

Advantages of a Car Subscription Compared to Buying

One rate – all costs included. This ensures you can easily manage your expenses without any surprises. Vehicle tax, insurance, maintenance, tire changes, roadside assistance, and more are all covered in the monthly rate. You can choose from different mileage packages to suit your needs. Even repairs for wear and tear are included.

Conclusion

Owning your first car is a significant milestone but also a major financial commitment. In addition to the purchase price, you must consider running costs, which can be challenging for young professionals. Unexpected repairs can stretch your budget to its limit. CARIFY’s car subscription provides an ideal solution for new drivers. The all-inclusive rate ensures cost transparency and budget security.

FAQs

How much should I spend on my first car?

Most people spend between 5,000 and 15,000 CHF on their first car. The amount depends on your budget, but a good rule of thumb is no more than 15-20% of your income. Used cars are cheaper than new ones but often lack warranties and are more prone to repairs.

Which is better: buying or leasing a car?

Leasing ties you to a vehicle long-term, and the contract terms can be complex for young drivers. However, you don’t need a large upfront sum. Buying a car outright limits your options to what you can afford. A flexible alternative is a car subscription.

How do I find affordable car insurance as a new driver?

Use comparison websites, ask about safety course discounts, and inquire about family discounts.