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We pick the top second-hand buys for students on various budgets

2016-09-12 16:10

It’s that time of year when you have to load up the family car to get your offspring to university, with everything they’ll need for the next term. You’ll repeat the same trip on several more occasions over the coming years, too. Just think how much easier it would be if they could transport themselves.

The problem is, buying and running a car isn’t cheap, and the costs are even worse for teenagers. Their lack of experience means insurance is usually cripplingly expensive. And as they have no or low income, buying and maintaining a car is often out of reach.

However, students are currently entitled to a maintenance loan to help them through university. For those living at home, this is set at £6,904. For anyone living away from home and outside London it’s £8,200, while grants within London are £10,702. On a term by term basis, these result in payments of £2,301, £2,733 and £3,567 respectively.

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While this money is provided primarily for living costs, we’ve found it is possible to buy a decent car with years of life in it for less than a single term’s instalment. That could be a good investment, not just for trips home but also getting around at university, giving worried parents real peace of mind.

We’ve chosen three budgets, each of which leaves a significant chunk of change from a payment of the annual loan. Even on such a small budget, most of these models can often be found with low mileage, due to their popularity with older owners who don’t cover many miles each year. Pick one of these up as you start studying, and it’ll still be going strong when you graduate.

On a budget of £1,500

Ford Fiesta

Model: 2006 Ford Fiesta 1.25 Zetec
CO2/annual road tax: 147g/km/£145
Official fuel economy: 45mpg
Insurance group: 9

The Fiesta has been the UK’s favourite small car since it was launched 40 years ago. It’s easy to see why – whatever your budget, a Ford supermini is within reach.

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You won’t get a current model for £1,500, but you can secure a 2006 Mk6 Fiesta 1.25 that’s covered 70,000 miles. For your money, you’ll have a car that’s great to drive, cheap to run and practical. Go for the more modern 1.25 engine and avoid Studio editions; aim for at least a Zetec. Listen for worn drop links in the front suspension (they creak) and on three-door cars, make sure the front seats tilt forward, as the cable can break. 

Renault Clio

Model: 2007 Renault Clio 1.4 Expression
CO2/annual road tax: 139g/km/£130
Official fuel economy: 47mpg
Insurance group: 8

Sold between 2005 and 2013, the Renault Clio Mk3 represents excellent value for money, plus it’s great fun.

For £1,500, you can buy a 90,000-mile 2007 car with a 1.4-litre petrol engine. Despite the name, avoid the Campus editions, and the entry-level Extreme is too basic, so go for a 1.2 Expression.

The Clio is one of the few small cars where we’d also recommend looking at a diesel, but £1,500 nets only a high-mileage 1.5 dCi and these Clios can be fragile, with petrol engines more reliable. Check for interior wear, make sure the air-con works and test all of the electrics.

Kia Picanto

Model: 2007 Kia Picanto 1.1 LS
CO2/annual road tax: 124g/km/£110
Official fuel economy: 55mpg
Insurance group:

This Kia won’t score highly in terms of street cred, but reliability and value are arguably more important, which is why the old Mk1 Picanto is our third recommendation for this budget. As standard you get five-door practicality, and although the car is smaller than the Fiesta and Clio, that just makes it lighter and more fuel efficient.

There were 1.0 GS and 1.1 LS options only; the bigger engine is more perky, and automatically comes with extra equipment, so aim for that. Make sure the engine isn’t leaking oil, that it idles smoothly and that the anti-roll bar bushes aren’t creaking from having dried out.

On a budget of £2,000 

Vauxhall Corsa

Model: 2007 Vauxhall Corsa 1.2 SXi
CO2/annual road tax: 139g/km/£130
Official fuel economy: 46mpg
Insurance group: 6

Not many cars can compete with the Corsa on value, as it’s very easy to drive, there are plenty to choose from and running costs tend to be relatively low.

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However, its popularity with crash-prone young drivers means insurance can be more costly than you might expect. Your £2,000 buys a 2007 Corsa 1.2 SXi with 70,000 miles on the clock. At this money, there are more examples of the previous model, the Corsa C, but the later car is more spacious and better to drive. Abused examples are common, though, with clutches, radiators, wheelbearings and steering racks all prone to failure.

Smart ForFour

Model: 2006 Smart ForFour 1.1 Passion
CO2/annual road tax: 135g/km/£130
Official fuel economy: 51mpg
Insurance group:

Few people remember this slow-selling five-door hatch, based on the contemporary Mitsubishi Colt. Those underpinnings mean you get Japanese reliability, but in a much more distinctive package. High prices when new reduced the Smart’s desirability, but now you can buy a 70,000-mile 2006 ForFour 1.1 Passion for just £2,000.

This higher-spec model is well equipped, but if the insurance costs aren’t too high, the 1.5 diesel is the one to go for. Running costs tend to be low, but wheelbearings and front anti-roll bar drop links don’t tend to last, while excessive wind noise suggests poorly aligned front doors.

SEAT Ibiza

Model: 2006 SEAT Ibiza 1.2 Reference
CO2/annual road tax: 140g/km/£130
Official fuel economy: 47mpg
Insurance group:

SEAT has long aimed its cars at younger buyers, which is why the Ibiza is so popular with students. As good to drive as it is to look at, the supermini offers strong value with decent carrying capacity and a good level of kit.

Cheapest cars to run

For £2,000, you can get a 60,000-mile 2006 Mk4 Ibiza 1.2 Reference. Spend an extra £500 and the next generation, launched in 2008, can be yours. But check the history before you buy, as the Ibiza is popular with young drivers who often scrape and neglect their cars. Also make sure the cambelt has been replaced on schedule and that the electrics work, as they can be temperamental.

On a budget of £3,000 

Toyota Yaris

Model: 2007 Toyota Yaris 1.3 TR
CO2/annual road tax: 127g/km/£110
Official fuel economy: 52mpg
Insurance group:

It’s the only Japanese car here, and the Yaris is renowned for its reliability. But because of its excellent reputation, asking prices tend to be a little higher than for equivalent European superminis. The Toyota offers some of the lowest insurance costs around, plus a four-star Euro NCAP rating.

Your £3,000 buys a 2007 Yaris 1.3 TR that’s done 50,000 miles. This engine is noticeably perkier than the 1.0-litre alternative while still being insurance friendly. We’d avoid the Multidrive automatic gearbox, and you need to be on the lookout for engine misfires, but there are few common issues with these cars.

MINI One 

Model: 2007 MINI One 1.4 hatch
CO2/annual road tax: 138g/km/£130
Official fuel economy: 49mpg
Insurance group: 12 

The MINI has been a massive success for BMW and it’s easy to see why; it looks great, is fun to drive and safe, thanks to its strong bodyshell. However, prices are high, reliability can be patchy, it isn’t the most practical supermini and insurance costs can be relatively steep.

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For many, these are sacrifices worth making. If you’re tempted, this budget is enough for an 80,000-mile 2007 MINI One 1.4 hatch. Earlier cars with the 1.6-litre engine are easier to find at this price, but this second-generation model is a significant improvement. Check for cracked windscreens, unreliable electrics and paintwork damage.

Volkswagen Polo 

Model: 2009 Volkswagen Polo 1.2 Match
CO2/annual road tax: 144g/km/£145
Official fuel economy: 46mpg
Insurance group: 4

You might think the Polo is out of reach, but this is the newest car here and potentially the cheapest to insure.

For within £3,000, you can get your hands on a 70,000-mile 1.2-litre version of one of the last previous-generation models. Most Polos at this money are to E spec, but if you can find a Match, you’ll benefit from air-con, alloys and electric front windows.

It’s a strong and safe car for the money, if not quite as reliable as you might expect. Check for corrosion under the window seals, listen for a whining gearbox and make sure the footwells aren’t waterlogged, as the door seals can fail.

Richard Dredge
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