Planning for a New Car

Hi Guys,

I am planning to buy my first car after my exam in May and I am a complete noob in this area

My budget is around $15k (if paid upfront) or willing to increase to $30k if I go with getting a credit.. I hate paying interest though.

Anyways, I am after the following and need your advice:

Year: at least 2012
Kms driven: max 40,000
Transmission: Auto
Body: Sedan
Others: Fuel efficient, Reverse Camera, Hybrid (if possible), keyless entry with push start button, entertainment system ( should be compatible with my Samsung S7),cruise control,

I have been looking at the new Honda Civic and Mazda 3 and I can't decide which one is better, but more recently I have been wanting to look into Hybrid Cars - I drove a cousin's Hybrid Honda Aqua (not in Australia) which impressed me with its fuel efficiency.

I also heard about demo cars from a friend, but I am not sure how do you go about buying those? I was going to buy a brand new car (obv I will have to increase budget), but most of my friends advised me to go with 2nd hand cars/demo cars for my first car.

Any help will be appreciated.

Thanks guys, hope you are enjoying the weekend!

Comments

  • +5

    camry H

  • +72

    "$30k if I go with getting a credit.." - ie Borrow from your future lifestyle at compound interest??

    1. Never borrow unless:
      Interest is tax deductible, &/or
      An appreciating asset.
    • +2

      good point! cheers

    • +28

      Appreciating asset? My 80k car is definitely that!

      • +2

        Popemobile?

        • +2

          Actually my ml270 is the current popemobile. I think ml270's were around 80k when new too, in 2002 dollars though - need a top westpac analyst to work out the investment in today's dollars.

      • +1

        You'd be getting a good return on investment.

      • +21

        I trust you because one of Westpac's top recreuit said that.

    • +5

      what if you need it to make a good first impression?

      • +9

        Then you become an Investment Analyst at Westpac and buy a $80,000 car ;)

    • +1

      I'd add a caveat to that. Borrow where you feel you can invest for a better return elsewhere (i.e. an index fund). That way you can use money from others to buy your item, while recouping (or if you're lucky, making a profit) interest payments from investing the money you would have used to buy the item upfront.

      • In that case, IF POSSIBLE better to buy your item with cash and use borrowed money to buy your index fund so the interest will be tax deductible.

      • Having survived through the GFC with a margin loan, unless you've got a good cashflow or safety net behind you, borrowing to invest in shares/funds etc. is fraught with stress and the danger of losing the lot… which many small investors did.
        If you're getting an unsecured personal loan (or margin loan) to invest you take all the risk to earn the bank their interest, and you get to scrape the crumbs off the top when things are going well. If there a shock downturn, you can lose everything unless you have cash to invest to keep it afloat.

    • I'm loving paying $400/month on my car loan and watching $100 in interest appear out of nowhere.. I thought that was the definition of living the dream.

      By June I should have the interest down to double digits.

      Thank God I made the decision to overpay the loan (only have to pay $220/month) or I'd probably still be paying $200/month in interest.

  • +2

    and insurance might be more if financed. Nevertheless insurance could be really high for you so put in some hypothetical quotes online to check your shortlist of models. Also consider you parents insurance.

      • +4

        "Why do you say this?" Because they do.

        Edit: thought I'd better check, took me 2 minutes online with QBE Go through any example (I used honda hrv/21yo/4yrs licence)then just "back" to change to financed….$100 more.

      • +1

        insurance companies always asks if the car is financed when the quote.

      • Insurance companies definitely have finance as a rating factor.

        Source : I work for one.
        Hybrids are generally really well priced also.

      • +2

        Insurers like youi care about how many hairs you got in your arse crack.

        • And then after you giving them your life story and them assuring you that you are in the best category they give you a quote for a lot more than you are already paying.

  • How long do you plan on keeping this new car?

    • 3 years+, that's why I want to buy like a 2013/2014 model

  • +2

    2016 Demo Camry ALtise, 0% finance, $22000-$25990. Might be able to get it a bit lower depending on the location of the dealer.
    The loan term is usually 5 years.

    • FYI, I believe with this deal, max finance is 4 years.

    • what do you mean 0% finance? no interest?

      • Yes, no interest. 4 years max. as someone said above.

        • thanks mate. Is there a specific website where I can search for demo only cars?

          Thanks

        • +3

          @ozbargainforlife:

          Carsales.com.au has a filter for demo cars.

        • @tomsco: thanks

        • +1

          @ozbargainforlife: I'd have a bit of a read up on these finance deals online. They sound good in theory but there are usually some pretty big downsides, the least of which being that they won't let you haggle on the price very much. If you're paying an extra $5k, thats pretty comparable to just a normal interest rate on the car

        • @jellykingdom: THat's right. They catch your eye with 0% but you end up paying somewhere else.

      • watch for a balloon payment though, not always there, but a nasty surprise.

  • +1

    Get a 2012 aurion. My father got the 2011 model for 17k, with 40,000 kms from a toyota dealer in Hornsby NSW. Been a few years and no issues. Depending on the model, it should suit your needs quite well. In the case of Honda or Mazda, Honda every day. Far more reliable. IMO, don't borrow if you can help it, its not worth it. You should be able to find some aurions for around the 15k mark, if not, go for Hondas.

    • +2

      not a fan of Aurion.

      • Unsure if you will be on your Ps or not, don't forget to check whether you can legally drive the car based on the power to weight ratio.

        I was going to get an Aurion, confident surely it would be ok for my girlfriend to drive on her Ps. Unfortunately not, I forget which year it was (recent), power was just a bit too high.

        18 months ago I bought a 2012 Camry Altise from a dealer in Hornsby for $17.5k with 23000kms.

        A boring car, but efficient enough and reliable, city traffic kills the efficiency a bit.

        Go a Hybrid Toyota if you want Hybrid.

        Where will you be driving this car?

        City vs non-city would affect my purchasing decision. Highway vs city traffic is a very big difference in fuel efficiency.

        • Thanks for your comment.

          I have a full license, most of the time i'll be driving in the city. Might just go to sydney sometimes on weekends. I am based in Canberra, so I guess annual KMs will be around 10k max.

  • +2

    A repairable writeoff corolla.
    its the latest fad
    https://www.ozbargain.com.au/node/292864

    you wont regret.

  • +11

    Don't borrow to buy a car.

  • +29

    Don't borrow money, stick to budget

    Don't go hybrid - the extra money you pay for a hybrid will outweigh the fuel savings over your likely length of ownership

    Go for something 1yo, no need for brand new

    You don't need push button start, get a reliable and comfortable car first, new features second. Android Auto is still new, and pretty buggy too (depends on your cable etc etc)

    • Very good advice :)

    • Thanks for your comment mate.

      I will probably own it for 3 years or more, would it still not be worthy to get a hybrid?

      I want the recent features in the car and a recent model, so that if I sell it in 2020, I believe it will go on a better price than an old model with standard features.

      But borrowing point does clicks my mind - I shouldn't be doing it! Thanks

      • Still wouldn't be worth it to get the hybrid

        Even a near new Hyundai/Kia should tick a few boxes. Something like an Elantra or similar. Not glamorous but they do the job and have warranty

        • true - I actually read an article on hybrids, it may take years to recoup the cost.

          One of my friends has got an Elantra, which works fine, but I think a 2010 Civic would be a better option than 2012 Elantra…

          I need to expand my knowledge about car brands, which is just limited to Honda and Corolla, as my parents have been driving these.

          What do you think about Mazda 3?

        • @ozbargainforlife:

          Yeah not bad, obviously have a big following due to sales but base models can be pretty boring, stuff all features etc

        • @Spackbace: what do you drive? and if you were to buy one within $15k, what would you buy?

        • @ozbargainforlife:

          I sell Suzuki, Mrs has a Territory for the kids :P

          For $15k I'm actually not sure :/ maybe a VRX Lancer, but I'm not sure how old that would be to fit in the (cash) budget

          Edit: looks like about a 2013. Sporty looks, all the extras, warranty till 2018

        • +3

          @ozbargainforlife: I had a Mazda 3 5 door hatch a few years ago. Great little car, sporty feel, and if you're like most other people just out of studies you'll appreciate being able to put the back seats down because you'll be packing all your worldly belongings in it from time to time as you move house.

      • +2

        Rememeber that you're guarenteed to ding up your first car abit, stuff happens and people hit you in the carpark then drive off.

    • While agreeing with the fact about fact extra money vs fuel savings, I think owing a hybrid is not all about fuel savings. At least it is not the case for me. First, resale value is not the best hence you can get pretty good bargain when buying a second hand Prius. They are expensive to own brand-new yes but value for money you get when you buy second hand Prius is unbeatable. For an example I bought 6 year old Prius with only 70,000 on the clock for just 9,000$ and that car is worth 38,000$ brand new..! The feature set you get with standard Prius is similar to high end corolla. Features you get with i-tech model (sun roof, leather seats, radar cruise control, lane departure warning, auto parking etc) is similar to luxurious European cars and for a fraction of the cost. These cars come with 8 year and 160,000 km warranty for battery so you're looking at years of trouble free driving..

      • These cars come with 8 year and 160,000 km warranty for battery so you're looking at years of trouble free driving..

        So 2yrs in your case, but that's only on the batteries. There's zero warranty on the rest of your car, so how exactly is that 'worry free'.

        Not to mention, who will even want to buy one once it reaches the 8yo mark? Meaning your resale is stuffed

    • Do you have any evidence for the claim that a used hybrid is more expensive than a comparable non-hybrid?

      I bought a 2007 Prius recently and when looking around they were around the same price as a similar year corolla hatch which has much worse fuel economy, has worse boot space and is less equipped.

      Sure if you are comparing a crap korean/indian car to a japanese hybrid then of course the korean/india car is going to look like the "better" deal.

  • +3

    Camry Hybrid. I achieve around 5.2L/100km. 50 50 split for highway and city driving.

    • Which model and how much did you get it for?

      • -2

        don't bother. They're expensive as fk

      • +2

        I don't own one. I lease a brand new one from my company.

        A brand new camry altise hybrid would cost 30k

        I also know someone who drives a prius c. They get around 4L/100km.

        • +1

          I don't get why people go for Camry when they can get an Accord with that price

        • @graysama:

          They are locally built so you are supporting local jobs

        • @Spackbace:

          Your comment isn't valid until October the 4th 2017

        • @terahammer:
          D: well still wouldnt get camry, RIP our automotive industry.

    • +1

      5.2L per hundred.. I'm lucky to hit 17L per hundred with 98 octane. Usually hovers around 20-22, just can't help myself. Can't beat a v8 👍

      • +11

        You should be banned from ozbargain with an attitude like that!

  • +1

    Corolla Hybrid, you can't go wrong with a Corolla.

    • +13

      You realise the Corolla Hybrid is like a $35k car…? And at the end of the day you're driving a $35k Corolla!

      • +1

        $31,474, i wouldnt choose the hybrid, he should get the ascent sport hatch.

  • +1

    Try to get a Toyota 86 - Chicks dig it.

    • +5

      My fat ass doesn't fit in one

      • +6

        Great way to filter out 'chicks'.

    • +2

      Not in his idea price range and not nice on the creature comforts. Its a car for a hobbyist, wouldn't recommend for a daily get around. Also its practically a 2 seater, rear seats are useless for anyone older than 10. Don't ask about boot space either.

      • +1

        And in stock standard form not fast at all!

        • +1

          It's not straight line fast, no. But it's certainly fast around a corner once you change the Prius tires - will give a lot of cars a run for their money.

        • +1

          @Kill Joy:

          As long as there's no straights 😂

        • +1

          Depends how far the 86 is leading out of the corners ;)

    • +10

      Try to get a Toyota 1986 corolla - chicks dig it

      • +2

        Only if you deliver tofu.

  • +4

    first car, dont buy a new one. If you want something recent look at a car like a 2014 Toyota Corolla Ascent Auto Sedan, they are the current shape so look like new, and will fine. they are around $15000. fuel usage is good and has all the bluetooth streaming, handsfree bluetooth, USB/AUX connectivity, power windows, ABS brakes, airbags, reverse camera, you dont need anything else.
    dont look for a hybrid, expensive to buy - any fuel saved will be lost with the purchase cost and servicing and insurance.

    before you buy get a quote for the model car you are looking at for insurance just to give you an idea - it may be very expensive.

    • thanks! I should keep the insurance in my mind!

      • Just go to a site like racq and do an online quote with a car model you are thinking. It will give you an idea.

    • I agree with everything he's said. Go low-hour second hand, or maybe ex-demo.

      I just got a 2014 Hyundai i30 Trophy (only 10,000km on it) and has all the bells and whistles that I would have wanted, and is still under their 5yr warranty. Cost me $15k and i think new these are about $19-20k? Probably bit more

      If you get lucky you can find a higher spec Mazda 3 with the 2.0L engine for about $20-21k. These are about $28-30k brand new. I was considering that but the best price was a manual and my wife can't drive it.

    • +1

      My first car is a 2010 Toyota Corolla Auto Sedan. It's fine cost $10k a year ago. Yes I've given it a couple of minor dings. If I had a wish, I'd want the reverse camera. When I'm sure I wont scrape it any longer I'll buy something else and trade in.

  • Hi guys, i recently got my red P (yay) and i plan to buy my first car which is a 2014 corolla ascent sport hatch (under 50km) from the company where i work. They offered me the car for 15k (consider a good price compares to car sales website). I wanted to ask fellow ozbargains if there is anything i should look or ask for before buying the car as i have no idea about cars. Thanks in advance.

    PS. Cars are managed by staff from a different department.

    • +1

      look up insurance quotations online to see how much you will be spending.

      If you are financing the car via loan, insurance will be expensive as some people have suggested above.

      Thanks

    • +1

      $15000, thats about the normal price for that car.
      My dad bought a 2014 ascent sport hatch for $14250 a few months back and when I was looking back then there were plenty that price ($15-16k).

      the car will be fine but check insurance for yourself - I assume you are around 18 years old so will be a heap.

  • Is there such a thing as a Honda Aqua? Do you mean Toyota Aqua, aka Prius C?

    That's basically a hybrid Yaris. You can buy a new non-hybrid Yaris for $15k. Maybe not- close- not an auto though.

  • -4

    Buy a car out can AFFORD! You can't AFFORD a super high interest loan. If you could, you'd have that money already.

  • +3

    1-2yo kia cerato which you can pick up for $13-15k
    and then sell in 3 years, as you planned, with the balance of a 7year warranty.
    they aren't terribly exciting to look at though

  • Fwiw I drive a mazda 3 and find it ok. Back seat is a little small though

  • You could get a Kia Cerato with 7 yr warranty. For that kind of budget, if you are willing to ignore the badge then take Haval for a spin. You will be suprised. I drive a VE SSV. On Saturday i took a HAVAL H6 for a test drive. I was mighty impressed. 5 yr warranty and roadside. It is packed full of features. While it didnt have the power sensation of a V8, i was extremely impressed with the punchy engine.I learnt a lesson on Saturday. Dont judge till you drive it.

    • +1

      not after a SUV though.

      Will Cerato have a good resale value?

      • +1

        Kia has really improved. Drive the corrolla and cerato back to back and you will see the difference. Doubt you will keep the car for 7 years so one of your selling points will be balance of warranty which most other car makers wont have as they only offer 3-5 yrs.

  • +1

    Mazda3 SP25 all the way. They are fun cars to drive, good on fuel, great looks and packed with features. It ticks all your boxes you are after. You should be able to pick one up brand new for around 26k or cheaper if you go second hand. Below the SP25 you can get the Mazda3 Maxx and you should be able to pick one up for around 23k new. Don't buy any demos no matter what make! Current Mazda3 model is a BN series which is a BM model refresh. Before that you will find BL series and you could pick one up for around 14-15k with maybe 40-50000Kms on the clock.

    BL ==> 2009-2011
    BM ==> 2012-2016
    BN ==> Current model

    • 26k for Mazda3 SP25?? Where is that… I'm based in ACT, MAzda 3 SP25 online shows me $31k. I don't like the Maxx, I like the touring better.

      Why should I not buy demos?

      • Why should you not buy a demo? Head over and watch this video:

        https://www.youtube.com/watch?v=BQctuPp3kjU

      • +2

        I bought an SP25 GT around November last year (the new BN model) for 30k with some extras included as well, so an SP25 could be picked up for around 26k or even less if you're good at bargaining down the sales people. Also this is a great time to buy because dealers will try and clear their floors with the 2016 builds.
        If you show you are serious about buying they will eventually give in to your asking price and if not, take your business somewhere else to a different dealer. The trick is to stick to your price and don't budge, or start with a very low price offer and then work your way up to your maximum price that you are prepared to pay. Personally, I like to tell them what I want and for what price and stick to it. Take it, or leave it. I ended up buying mine over the phone after seeing a few dealers and had a few test drives. I kept calling dealers until I found one that will give me what I wanted and then I've put a deposit down over the phone. Dealers do not like to give you their best prices over the phone because they are afraid you will take that price to another dealer to try and beat it, but if you tell them you will leave a deposit there and then over the phone if they meet your requirements, they will try and get your business.
        No matter which car you decide to buy, do your homework and never overpay!

        With regards to Mazda, they truly have the best customer service that any one can get. They are really customer focused and you will not find that anywhere else. The SP25 GT that I bought, all I can say is that I am very impressed. Mazda has come a very long way since Ford sold their stake in Mazda. I consider myself to be a bit of a car enthusiast and believe me, it takes a lot for me to be impressed. I am not saying it is the perfect car, but it's damn close to it, especially considering the price you pay for it. It has a very luxury feel to it, has many safety features as standard, looks good, drives perfectly and it has enough power to be fun at a very low fuel consumption.

        Watch John Cadogan's video regarding the SP25. It's an old video with the BM model, so now they are even better with many options now as standard.

        https://www.youtube.com/watch?v=sm3BMVTa8OI

        Check out whirlpool on Mazda 3 and see what people think of it and at what prices they get them at.

        https://forums.whirlpool.net.au/forum-replies.cfm?t=2582484

        https://docs.google.com/spreadsheets/d/1i35Y5Bh0fAgEg8wtozNc…

        With regards to demos, don't buy them because they get thrashed at the most important time when a car should not be thrashed and that is for the first 3-5,000Kms or so. Everyone test driving a car will want to know its limits before buying, hence the thrashing part.

        • +1

          With regards to demos, don't buy them because they get thrashed at the most important time when a car should not be thrashed and that is for the first 3-5,000Kms or so. Everyone test driving a car will want to know its limits before buying, hence the thrashing part.

          Not true actually

          Some manufacturers license cars to get their sold numbers up. Cars will be 'demos' but not necessarily plated, or driven.

          Other demos don't get 'thrashed' as you put it because they're not that sort of car. They also have a salesperson with them 99% of the time.

        • -1

          @Spackbace:

          I drove a mazda3 three times. Once with the salesperson there and twice without. I also drove a Corolla with no sale rep, so your 99% of the time is not the case these days. Maybe in the old days but not now.
          And even with the sale person in it, I still put my foot down to have a feel of it. Regardless, demos do get thrashed. Why would you take that risk? If there is a considerable discount to them, then I would say yes, go for it, but they try and sell them at almost brand new prices.

        • @AceIsMe:

          I drove a mazda3 three times. Once with the salesperson there and twice without. I also drove a Corolla with no sale rep, so your 99% of the time is not the case these days. Maybe in the old days but not now.

          3 test drives is rare, majority of the time it's just the 1

          And even with the sale person in it, I still put my foot down to have a feel of it.

          Putting your foot down to test a car is hardly 'thrashing' it. If you think any car couldn't handle that a couple of times, then you really should be staying away from that brand. It's not like you were limiter-bashing the car or anything so it's not going to do anything that the engine isn't already designed for.

          You realise engines are run-in from the factory now? Hence why there isn't any run-in period for them.

          You also completely missed my point about undriven demos. There are many out there and can represent a decent discount off new.

          But it looks like you're one of those that just believe 1 person's opinion and can't listen to others. It's not like I'm in the industry or anything…

        • -2

          @Spackbace: Putting your foot down to test a car is hardly 'thrashing' it.

          Putting your foot down, reaching the limiter is considered thrashing!! At 6500 RPM the crankshaft spins 109 times per second. That's one piston traveling up and down 109 times each second. That's 109 times up and 109 times down every second! It is a very balancing and mind blowing act where many things happen in a fraction of a blink and yes, the cars are designed to handle those limits but when you do that to a dead cold engine I can guarantee you a lot of ware and tare happens there in a very short period of time regardless if an engine is run in or not.

          @Spackbace: You also completely missed my point about undriven demos. There are many out there and can represent a decent discount off new.

          I did not miss your point. If such thing exists and you can get a so called "demo" with 0Km on the clock then that's a no brainer. Go for it!

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