Affording your first car isn’t always easy, with most new drivers forced to opt for a cheap, used old model. However, a few years ago, hope for young drivers looking to invest in a new car was provided by top brand Peugeot.
The company introduced the revolutionary “Just Add Fuel Scheme”, aimed at new young drivers. So, what exactly is the scheme and is it really useful or just a gimmick?
What is it?
The Just Add Fuel Scheme is a type of car finance which includes insurance, tax, finance and servicing. So, just as the name suggests, you literally just need to add fuel to your new car to get it on the road. It’s designed to not just offer fantastic affordability, but convenience too.
You’ll need to pay a fixed monthly amount, just as you would with any finance deal. The fact you do only need to worry about fuel and there aren’t any other costs involved does make it an attractive option. But is it really as good as it sounds?
Is it the cheapest option?
It’s logical to assume it would still be cheaper to buy a used car compared to a new one, even with the Just Add Fuel Scheme. However, in some cases it does work out cheaper to buy a new car with this deal, than a used one.
Young drivers in particular would find it difficult to afford a decent model, even if it’s used. That’s because used cars, especially the very low budget models, can be unreliable. This means they’ll possibly need repairing in the not too distant future. The repair costs aren’t covered when you buy a used car, plus you have the cost of tax and insurance to worry about too. So, if you’re 18 or under, the Just Add Fuel Scheme can work out significantly cheaper.
If you’re over 25, you’ll also find excellent deals under the scheme, including models which aren’t currently available to younger drivers. Peugeot has recently updated its under 21 scheme, to include the 2008 crossover and 208 supermini, but there’s still models unavailable to younger drivers. Therefore, it’s worth looking into which models you’ll be able to buy.
Overall, the Just Add Fuel Scheme isn’t just a gimmick and it can be a great way to purchase your first car. It’s best suited to younger drivers who would otherwise struggle to afford the insurance, tax, servicing and purchase cost of a new vehicle.