Shoestring Superminis

By Leo Kimitri

Thanks to the rapidly increasing cost of insurance (and of course petrol, road tax, servicing etc.), car ownership levels among young people are plummeting. In a bid to soften the blow, Peugeot is extending its “Just Add Fuel” scheme which rolls all major motoring costs into one fixed monthly payment, so that it now covers drivers as young as 21. While this still leaves under 21s out in the cold, at least those residing in the hinterland between 21 and 25 now have another option when they come to buy a car. But just how tempting is Peugeot’s three year long package?

Well, a 21 year old can expect to pay £215 per month for a 107 Active, which includes comprehensive insurance, road tax (which Peugeot neglects to mention is free on this model anyway), servicing and roadside assistance. Overall, three factors affect the total cost – the car chosen, the owner’s postcode and the age of the youngest named driver. This all means that if you live in a postcode with high car crime for instance you’ll no doubt have to shell out much more than that, but whatever the price you pay, you’ll know exactly how much your car will cost to run every month for three years.

However, as with all finance deals, Peugeot’s “Just Add Fuel” scheme is not that straightforward – it really should have been called “Just Add Fuel and Deposit”. That’s because a 21 year old paying £215 per month would need to stump up the princely sum of £1,633 for a deposit too. And if you have to find £1,633 to pay upfront why not just spend that on a whole car? Sure you won’t have the convenience of a nice round-numbered bill every month and you won’t get a new car, but you’ll be spending much, much less in the first place.

So what can you get for £1,633? How about a 2004 Daihatsu Charade? No it’s not exciting, but it’s no less interesting than the Peugeot 107. Plus it has lots of space, will return nearly 60mpg and cost just £30 per year in road tax. You can even get several hundred pounds change from the £1633 budget if you shop around. Or, if you don’t like the Charade’s gawky looks, there are dozens of cheap, sturdy Ford Fiestas and Renault Clios available for the same price that should prove reliable and inexpensive to run.

Therefore, unless you truly value convenience above cost, Peugeot’s “Just Add Fuel” is of limited value. Despite the manufacturer’s bold claims that their scheme will tackle the drop in young driver car ownership, lumping all motoring costs into one big bill instead of several smaller ones does not suddenly make motoring affordable.

CLICK HERE to read the Verdict on the Peugeot 107

CLICK HERE to learn more about Just Add Fuel