Costs

• The car /bike - this depends on your choice and your finances! Buy outright or through a special finance deal over a fixed number of months, (you may need a deposit for this). Always try to haggle for a lower price
• Road Tax Licence
• Insurance
• Running costs - petrol, servicing, parts etc.

Registering your Vehicle

Registration Document
What is a Registration Document?	It is a document that shows the name of the owner and the details of the vehicle (make, reg.no.). A vehicle must be registered before you take it on a public road.
Where do you get a Registration Document?	The Driving and Vehicle Licensing Agency, Swansea.
Does it cost anything?	No
How do you get one?	If you buy a new car/ bike, the dealer will register it for you. When you buy a second-hand car /bike, the previous owner will give you the registration document. You must re-register the vehicle in your own name by completing the 'Change of Owner' section on the back and sending it to.
What if the car doesn't have a Registration document?	Apply for one using form V62 from the post office.
How long does the document last?	You keep the document until you sell your car/ bike. If you scrap the car/ bike, you must send the form back to Swansea.

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Taxing your Vehicle

Tax Disc
What is a tax disc?	It is a vehicle licence to give it its proper name. All vehicles must have one. To show that you have paid your licence fee, you get a coloured disc that you put on the inside of your windscreen.
Why do you need one?	It shows that the car has been taxed. It is the law that all vehicles must have a current tax disc before they are taken on the road. If the vehicle is parked on the road, outside your house for example, it must have a licence, even if you don't use the vehicle!
Where do you get a tax disc?	From a Post Office. When you go to buy a tax disc, you need to take your vehicle Registration Document, a certificate of Insurance and an MOT certificate (if you need one) with you.
Does it cost anything?	There are different rates for different types of vehicles. At the moment it is £150 per year for a car, but these rates can change when the Government announces its budget. You can buy Vehicle Licence Stamps for £5 each at a Post Office and save them on a card for when you need them.
How long does it last?	You can buy a disc that lasts 6 or 12 months.
What if I change my car/ bike?	The disc stays with the vehicle. You cannot put it into another vehicle. When you buy a car from new, the dealer usually taxes the car for you. If you buy a used car or bike, it makes sense to look for one with some time left on the disc before you have to buy a new one. The expiry date is shown on the disc itself.

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Insuring your Vehicle

Insurance
What is insurance?	This is something that covers you in case you have an accident or in case your vehicle is stolen or damaged. The insurance, depending on the type you have got, covers the cost of repairs or replacement.
Do I need insurance?	You must have insurance before you take a car/ bike onto the road.
How much does it cost?	Insurance can be quite high for young people because you are deemed to be in a 'high-risk' group. Statistics show that a young person is more likely to have an accident. Shop around for a quotation from various companies or brokers. Endsleigh or one of the student-recommended insurers often offer good deals for young people. Start with your parent's insurers if they have one and ask their advice.

For a list of insurers on the web see
http://www.find.co.uk/advice/AIB.html

Endsleigh Insurers
http://www.endsleigh.co.uk/protection/index.html

An example of a letter of application for an insurance quote is provided. Click here to open it as a word document.

Checklist of things to ask:

• How much would insurance for someone aged ....... cost?
• Does the value of my vehicle affect the cost?
• What does that cover?
• What happens if I have an accident?
• What happens if my car/ bike gets stolen?
• How do I make a claim?
• Will the cost go down if I don't make a claim after a year?
• How do I pay the insurance (monthly, quarterly, yearly)?

MOT Certificate

MOT Certificate
What is an MOT certificate?	It is a certificate that shows a car or bike has been put through a Ministry of Transport (MOT) test at a local garage and is fit to be on the road at the time it is tested.
Do all cars/ bikes need one?	All cars and bikes over three years old must have an MOT certificate
What does the test involve?	The test checks lights, tyres & wheels, steering and suspension, and the general running of the vehicle.
Does it cost anything?	Yes. A garage will give you a price. If your vehicle fails the test, you must have the things put right and then pay for a re-test before you use it again.
Where can you have an MOT test?	They are done at most garages.

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Running Costs

Hidden costs include petrol, repairs and servicing. If you buy an older vehicle, the cost of repairs can prove expensive!

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Fun Quiz

1. What does MOT stand for?
2. Where would you register a new vehicle?
3. Where do you put a tax disc?
4. Where do you buy a Tax Disc?
5. What do you need to show when you tax your car/ bike?
6. When do you need to get an MOT certificate for your vehicle?
7. Where would you get an insurance quote?
8. Name four things that you definitely need before you take a car on the road.

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