Buying a car - advice needed please

[Ali G]

Hi Everyone,

I hope it's OK for me to post this here in the Coffee Lounge.

After a decade of study I have finally decided to get myself a job and I've found myself a wonderful role that couldn't be better. The only one hurdle is that it is a fair distance away - a 140km round trip - and whilst the driving itself doesn't bother me, I'm not sure how long my little old car will put up with it for. I'm driving a fossil from 1989 with over 300,000km on the clock and I feel it is about time I get something else, even though I still love it. I absolutely must have reliable transport as running late is not an option at all. It's time to bite the bullet.

So, I've started looking at cars and I am all confused. I don't need help with the kind of car, more so with all the other factors that come into play, such as type of finance to get (I'm a sole trader, and so far I think a lease makes most sense?), whether to buy second-hand or new (I'm concerned about the cost of a new car but then reliability is of utmost importance), how much to spend (the car may well be a family car for us in a couple of years so I want something safe but don't want to over-extend financially) and even how long to keep the car for seeing as I will be doing around 40,000km per year and will possibly want to trade the car in for something else before it has too much mileage on the clock.

I understand buying a reliable car is a necessary expense, but I am yet to start investing and I am reluctant to set back my investing too much by buying a car. I am having trouble working out the best balance!

I don't expect anyone to have 'answers' as such for me, but perhaps if you have any advice or stories to tell that might help guide me to make the right decision I would really appreciate that. I've had my current car for 11 years so this is all new to me.

Thanks in advance guys.

Ali

 

[Sunfish]

I'll start the ball rolling with a couple of things I've found:

With a bit of luck most cars are good for 300k reliably, (even the smaller ones) so buying a used one only a couple of years old makes economic sense.

There is an expensive service around 100k (most cars) where a new timing belt is fitted. This is important because if the belt fails the valves can put holes in the pistons. While this is being done it is wise to replace the water pump which is driven by the belt and takes hours to replace later. Why I mentioned this is to avoid a car that is due for this service soon. If it's been done a good car with 120k on it should still be OK.

Dealing with the dealers when buying new is a pain. When I buy my vans I never take them back to the dealer for service thus saving more on service than most warranty claims which may be voided would cost to do myself. (I don't recommend this generally ) so buying s/h is OK with me. I hate dealers and like to take them out of the loop.

Doing those miles fuel economy is important but not critical, and unless it is a lot of city driving a hybrid won't pay back it's extra cost.

Brands? I love Hondas and find the "cost of parts" a non-issue because they don't need many, so you save heaps on labour. Without knowing your tastes the Honda Civic should be good. Hyundai Getz looks a great, cheap little car and they are the only Korean brand I'd buy (Their reliability stats are surprisingly good). May be too small for the drive but. Anything with a Toyota badge would be good.

Avoid European, they spend too much time in the w/shop.

 

[ianvestor]

With a bit of luck most cars are good for 300k reliably, (even the smaller ones) so buying a used one only a couple of years old makes economic sense.

Wooaaah!!

Sunfish when I read this I thought you meant cars that go for $300,000 were 'reliable'...

You'd hope so for that price Brand-new Merc anyone?

 

[Perp]

 

[MarkB]

...unless it is a lot of city driving a hybrid won't pay back it's extra cost.

Yes, I thought that too.

Until I actually got behind the wheel of one (Toyota Prius) and quickly learned that my fuel economy is best on the open road.

M

ps. Not suggesting you buy a hybrid Ali (they are still on the expensive side), just correcting a popular misconception.

pps. And one more thing re: the Prius. I can honestly say it handles better than the last 2 cars I have owned beforehand (BMW 318i / BMW 323i). It drives very nicely.

 

[BayView]

As Sunfish said; don't buy brand new as cars these days are built quite well and will easily last at least 200,000km's.

A 2 year old version of pretty much anything will still be in pretty good nick, and you'll save thousands on the drive-out-of-the-lot depreciation you get with a new car.

I reckon the dealer servicing is a scam; totally over-servicing and "churning" you for bucks.

Cars like Hyundai Accents, Toyota Corollas, Honda Civics etc, are fantastic on fuel, go forever and are cheap.

If you can keep the "w@nk" factor in check and go for these types of cars you'll do well and save thousands.

 

[ianvestor]

Here's a little spinner that I have long since retired from so will share with all...

The best time to buy the really cheapie cars is Nov/Dec when foreign students have to go back home after uni (search for urgent or overseas or must on carsales.com.au) and the best time to sell them is Jan/Feb, when foreign students are coming over to Aus to start uni

I made a bit of money doing this repeatedly when I was about 23-ish.

I got to drive the cars around for the Xmas holidays for free and then sell for a few hundred dollars profit.

The best deal I did was for a 1989 Honda Accord, picked it up for $3900, spent $150 on servicing the radiator, then sold it for $4600 after driving it around for a few weeks.

It was actually where I got my first real practice at negotiation.

A bit risky though if you get something that falls apart after you buy it.

 

[Spectre]

Subies or the ones I've had.... (I get ripper deals on them)
wrx blew up the engine 2x and gearbox 3x and brakes 1x. Then again it was pretty modified
liberty no problem but traded it for the outback which melted down just pre 100k but we ran it into the ground.
new liberty doing ok so far
new forester doing ok so far
other friends had a forester - it melted down just pre 100k as well and they spent @4k on it to get it back on the road.
So moral of the story - if a subaru then flick it before it hits 80k

 

[Spectre]

And as a postscript, my prado is hands down the best car/truck etc - never missed a beat so cant see anyone going wrong with a toyota.

 

[Aaron Sice]

Subies or the ones I've had.... (I get ripper deals on them)
wrx blew up the engine 2x and gearbox 3x and brakes 1x. Then again it was pretty modified
liberty no problem but traded it for the outback which melted down just pre 100k but we ran it into the ground.
new liberty doing ok so far
new forester doing ok so far
other friends had a forester - it melted down just pre 100k as well and they spent @4k on it to get it back on the road.
So moral of the story - if a subaru then flick it before it hits 80k

my subi forester has 105k on it and the tranny is starting to act up. is STUPID thirsty too.

also try to buy a car in QLD - flat 2% stamp duty makes all the difference. our new car upgrade for the family will be around the $60k mark for a 7 seater 4WD 5star safety rating, in WA i'll pay $3964 stamp duty and in QLD i'll pay $1224. there's a holiday in the middle there somewhere


i'd recommend a Getz - cheap, cheerful, plentiful, easy on insurance - and i'm getting one for a runabout as well.

 

[Spectre]

BC
If its a subaru let me know, my bro in law runs the dealership!

I probably shouldnt be looking at getting that new sti coming out... I'm skipping the GTR.

 

[evand]

Just dont have an accident in one. Tinniest car i've driven. I think they're mad from aluminum cans.

i'd recommend a Getz - cheap, cheerful, plentiful, easy on insurance - and i'm getting one for a runabout as well.

 

[evand]

Mate, heres some advice for free.

The sooner you get over that limiting mindset, the more successful you'll be. Financially and personally.

If you can keep the "w@nk" factor in check and go for these types of cars you'll do well and save thousands.

 

[Sunfish]

Getz safety

Getz matches its top European competitors in safety engineering, achieving the equivalent of four star rating in in-house crash testing to Euro NCAP standards.

Extra strength derives from the high tensile steel comprising 58.3 per cent of bodyshell mass and one-piece whole side outer panels and door outer and inner panels integrating the window frames. The doors also have window sill re-inforcement and side intrusion beams inbuilt. Laser welding adds strength to the body shell.

An extract from:
http://www.autoweb.com.au/cms/A_55196/title_Getz-Reclaims-Hyundais-Youth/newsarticle.html

 

[evand]

Google is your friend lol. Don't believe everything you read on the net Sun, remember its only another persons opinion.

I can only comment on the low km Getz i've driven as a loaner. And it was a shocker.

Regardless, as a car enthusiast you'd know that four star Euro NCAP is pretty standard. its no big deal, in fact, you wouldn't want to buy a car with less than 4 stars (do any exist?), especially if you have kids.

5 star is becoming very common these days (the current benchmark) with most new everyday cars achieving 5 stars.

Getz safety

Getz matches its top European competitors in safety engineering, achieving the equivalent of four star rating in in-house crash testing to Euro NCAP standards.

Extra strength derives from the high tensile steel comprising 58.3 per cent of bodyshell mass and one-piece whole side outer panels and door outer and inner panels integrating the window frames. The doors also have window sill re-inforcement and side intrusion beams inbuilt. Laser welding adds strength to the body shell.

An extract from:
http://www.autoweb.com.au/cms/A_55196/title_Getz-Reclaims-Hyundais-Youth/newsarticle.html

 

[Sunfish]

Yes four stars is very average today but is a world ahead of where things were when I was in the trade.

The point I was trying to make is the the safety of old "solid" cars made of "real steel" is an illusion especially if there's cancer in the sub-frames.

I haven't driven a Getz. In fact the only small car I've driven, briefly, was a Corolla, near new, and I hated it after my Accord. But we couldn't recommend the V6 Honda for that task, could we?

 

[BayView]

Mate, heres some advice for free.

The sooner you get over that limiting mindset, the more successful you'll be. Financially and personally.

What's limiting about that?

Just because I choose not to spend enormous amounts on cars and other doodads, doesn't mean a thing.

I've been there and done it; it's a total waste of money; no-one thinks you're cool, and worst of all; they keep you poor and saddled to a job.

What's your definition of success anyway? Mine is to be financially free, and have more time with family and friends. The rest is just stuff.

Driving a Beemer at $800 per month lease or whatever it is while on a moderate income won't get you there. All it will do is make you think you are.

You have no clue about my success in any area of life, and last I looked there was no competition. I'll buy a Beemer when I can pay cash thanks.

The guy asked for advice about which cars to buy, given that distance and budgets etc will be factors. I gave him my take on how to maximise the two.

Following that plan will get him richer, quicker, than following your apparent idea that you need to be seen to be rich and spend more on transport.

That's not a symbol of success to everyone.

Why don't you offer him some sage advice instead of taking lame pot-shots at me?

 

[Spectre]

As a break in the online tension..

open box
insert two cats
close box

reeer

And still no add in from the thread starter...

Every thread re a car seems to end up in a difference of opinion. Think the last one was the doctor wanting a flash car and maybe before that the financial planner who drove a merc or something.

 

[BayView]

I guess my (dim) view of cars has been further coloured by spending 2 years in the "Tossing Capital of the Universe"; LA.

Beemers, Mercs, Porsches and Hummers are a dime a dozen, and many are driven around by 17 year olds with dogs in their handbag.

Makes you think; they used to be a symbol of success and wealth; but now why bother?

Give me a 2 year old Camry and another cfp IP anyday.

 

[The Y-man]

Getz safety

Getz matches its top European competitors in safety engineering, achieving the equivalent of four star rating in in-house crash testing to Euro NCAP standards.

Official NCAP results below.

http://www.euroncap.com/tests/hyundai_getz_2004/199.aspx

Now the BAD NEWS - most of the variants sold in Australia often lack the safety features of their Euro counterparts.... eg. you'll note the model tested had side body AND side head airbags.... you may find the model in the local dealership may not even have an option box to tick for these items (to keep costs down)

Cheers,

The Y-man