Is It Worth Spending $44k on a Compact SUV?

Hi Guys,

Wife is looking at sub compact SUV. Prefers a high seating ride and all the bells and whistles. She currently rides a Toyota hatch that is around 11 years old and it’s time to upgrade.

Have narrowed it down to the new (facelift) Kona Highlander and Kia Seltos. I checked the prices and both are around $44k! Kona will be available in a week or two but I think Seltos may have months waiting period from what I have read.

Are these care even worth that kind of money?

What do you reckon?

Car should have -

All safety features including blind spot monitoring
Heated seating
Front and rear sensor
Reversing camera

Comments

  • +44

    In my opinion no, not worth it. That’s a lot of money for a tiny little car with not much space or power - not super practical except for ease of parking. You can get a nice mid range Hyundai Tucson or Kia Sportage for around $35k.

    • Thanks. I feel the same.

      Sub $35k Sportage or Tucson is for second hand or new car?

      • +1

        New. I believe they both start in the low $30’s for base model, mid range around mid $30’s.

        Tucson Active X automatic is currently listed at $35,990 drive away. Sportage SX automatic is $33,290.

        • -1

          I agree…the Sportage is ugly. We didn’t even bother test driving one as wife and I hate the look of it, mainly the front.

          Features wise they are good and come with a great warranty.

          New generation Sorento is very nice and hopefully that styling filters down to the Sportage.

      • +2

        My girlfriend has a 2016 Kia Sportage and she loves it.

        It's not huge so it's easy to drive but it has a decent amount of space.
        It's pretty good on fuel and it's the car we load up with our paddleboard and kayak on the roof racks to go down the coast with no issues whatsoever.

        Her's was about 25k second hand and it's been perfect.

    • +4

      I agree with this as well. Not sure I'd spend that much on a vehicle that size.

      I ended up getting a Hyundai Tucson Elite (7 speed DCT, 1.6T) for $40,500 last year, a decent discount without any haggling using John Cadogan's service. Worth a try once you've decided exactly what you want.

      • How does that service work??

        • All explained on the website

          https://autoexpert.com.au/contact

          • @THICKnSLOW: Essentially you tell them exactly what you want, car, colour, options etc. Their brokers then start contacting dealers to get their best price (as a volume customer, so generally at least fleet pricing), then play them off each other to screw them down and find it locally.

            Took about a week and a half, the guy must have contacted every dealer on the East coast. Every day he'd come back with the latest "best price". Once he had the best price (somewhere in QLD) he convinced a local dealer to match it, I signed a contract, organised payment, and then the car showed up. Very happy with how it went, got better than fleet pricing, better than EOFY, and he found a vehicle already on a boat, so I only waited about three weeks after signing.

            • +1

              @Abaddon: Sounds like you had a great experience

          • -2

            @THICKnSLOW: and John calls the Sportage ugly! Has he ever had a mirror?

            • @payless69: Sportage is indeed very ugly. I think he is spot on there. I mentioned the same thing in my previous comment but got negged by Sportage owners lol.

        • -1

          John's reviews are also pretty good for unbiased info as you are looking at each model.

      • +1

        commenting here so i dont forget about this website, although i'll likely be going for a demo model

    • +3

      The Seltos is smaller than the Sportage on the exterior, but actually has more interior space (i.e. better packaged). They are effectively comparable, with the benefit of the Seltos being a newer and more modern car.

      Looks like OP is looking at the top GT-Line only, but the Seltos starts at $27.2k driveaway, with the equivalent "Sports" trim (compared to the Sportage's midrange SX trim, which is $33k driveaway) at $30,790 driveaway ($31,790 with safety pack). You can even move up to the more loaded Sports+ for $34,290.

      At those prices, I'd pick the Seltos.

      • But seltos' dry clutch in long term, idk? Never been a fan of dry clutch.

    • +1

      What prices are you looking at??? The Kia Seltos that OP is referring to is $27,290 drive away. For this price, it seems pretty reasonable. If you want the ultra delxue model then it's $43,290. So really, the real question that OP is asking is whether it's worth it to pay an additional 58.6% in price for the ultra deluxe model. I found that one step down from this is the sweet spot, you want all the latest tech but that last upgrade is usually unnecessary.

    • +3

      Don't change

      • Can you please elaborate on what you mean by don't change

        Thanks

        • +7

          Nubzy recommends French cars on every post, or as often as possible

            • @nubzy: I'm under the impression it is difficult to get some parts for French cars.

              • @bmerigan: had a mate have his citroen c3 starter motor go the other week and mechanic charged him $850. That's pretty crazy in my book but I guess the parts are more expensive unless you can find someone to ship from Europe on the cheap (cheapest on ebay is 385 and that's an aftermarket probably chinese thing)

                • @Jackson: yep. I've got a friend waiting 2 months for a suspension component.

              • -6

                @bmerigan: Sure it can be depending on the specific part and age of the car, but for a modern Peugeot it's no worse than any other car really. You can wait months for parts from Japan too.

                • @nubzy: except for Japanese cars you don't have to wait for common parts like starters to come from Japan…

    • +1

      oh bless..

    • +2

      French cars are notoriously unreliable (check JD powers) and it's hard and expensive to get parts here when they inevitably go wrong.

      • -2

        LOL have you even seen the 2019 JD Power results? It can be hard and expensive to get parts for any car, especially during COVID. It is rare that you need parts anyway, and Peugeot Australia seem to be keeping a good lcoal supply of parts for late model cars.

  • +21

    Forester or Outback for that coin imo. They're great cars and Subbies tend to hold their value - coming from a VW owner.

    • Interior of the new ones look good. 2.5L is a big drawback.

      • +1

        why drawback

      • +1

        Agreed, the new outback is possibly our next car. Shame about the engine but the Subaru is such a good all rounder, with a lot more space in the back than many SUVs.

        • I was hoping they will continue with the 3.6R, or a 2.0T.

          Purpose is to replace the current hatchback with something bigger.

          No longer an option since only 2.5 or a very average hybrid is on offer.

          • @[Deactivated]: why drawback juon

          • -1

            @[Deactivated]: The 2.5L I'd more than enough engine for the vast majority of situations - it's got plenty of get up and go. I have an old Outback and even it has plenty.

            What do you need to do that precludes you from having a measly 2.5L?

            • -1

              @[Deactivated]: Because I have driven a rental and it felt like a gutless boat.

              Overall feel of the drive, as well unpleasant on freeway.

    • +1

      Outback is on the cusp of a new model being launched. I would only get the existing shape in diesel or 6 cyl, since iirc they won't be available in the new model

      • +1

        Australia will only get the terribly underpowered 2.5L 4 cylinder new model.

        I was expecting that Aust would get the 2.4 turbo.

    • VW touareg is the only vw suv worth getting.

      • +1

        this message brought to you by your local Euro mechanic

      • I think this might be true. Touareg has torque converter instead of VW crappy dual clutch.. so yeah

  • +4

    You can get a Kona base model with the safety pack for under $30k

    They are a great car for that price, hence their popularity.

    You very rarely see the highlander on the road and at 44k that explains why!

    • Interesting point.

      All Kona variants come with the Samrat sense safety pack which is cool.

  • -1

    I'd save even more with a top-spec MG ZS. But I like to live dangerously.

    • +5

      MG?? I had to Google that.

    • +5

      The real cost to you is not the purchase price, but the depreciation. I'm not convinced that you actually save money buying an MG, but I guess time will tell

      • +1

        I think for 38k he can get the fully electric model, if he wants to spend money on a compact then that should hands down be the one to get. Will get his money back in savings on fuel and servicing and get all the benefits of a decent range electric that's specced up

        • +1

          Depreciation on electric cars is still very much unknown. Forecasted rapid improvements in battery technology might leave current electric cars obsolete in 5 years?

          • @Dollarsandsense: Nly obsolete if your car doesn't meet your needs. There's still people driving Nissan zleafs daily that only have 2/3 of their original 140km range after 8 years. The MG has a lot bigger range than that already and so it would be more than 10 years and the thing would still be going strong. It's also got a liquid cooled battery, so degradation won't be an issue at all

  • +16

    Heated seating

    Should have?! Sounds like your wife needs to check budget vs expectations

    • Lmfao! I laughed hard. This is true.

      • +8

        Ever considered downsizing to a cheaper wife?

        • +6

          The cost of changing is huge!

      • +2

        Hey I bought a 2020 Kia Cerato for 27k brand new that came with heated seats! Has a tonne space but if you want the ride height feel probs skip it

  • +1

    No. but ultimately it’s your money.

    • Agree.

      • +1

        Wife's money, not yours. ;)

  • +8

    No lol. Get a 2-3 year old one. Features will all still be there, price will be 25% lower.

    Your wife has gotten by without those necessary features for all these years, what's changed now?

    Small SUVs are ripoffs. Get a hatch or sedan, or get a bigger SUV/wagon. You don't gain anything by going a small SUV.

    • +3

      I do understand the depreciation concept but I have to say cars around 2-3 may not have all the tech/safety features including apple CarPlay etc.

      Hatch is a good idea. Hmm.

      • +2

        say cars around 2-3 may not have all the tech/safety features including apple CarPlay etc

        Of course, not all of them do. However many of them do and you could save a lot of cash by finding one vs a new car.

        Hatch is a good idea. Hmm.

        It is. i30 and cerato will save you cash over the equivalent "SUVs". Same too re Impreza, yaris, corolla etc. If you don't need awd or tonnes of room, a small batch or sedan is plenty of space for most.

        • +1

          You can even have AWD with the Impreza, though ride height is low so it isn't intended for major offroading - just a benefit in the wet etc.

          IIRC the top spec Impreza is around $35k. It is a bit slow but gives enough, especially with the 'S' mode.

          That said, the MY22 Impreza is probably a facelift/new version, this is the 5th year of the current Gen and they are pretty predictably 5 year intervals.

        • +4

          Recently sold our 2016 Tuscon and replaced it with a new Cerato for not much more than the Tuscon sold for. Great car, good safety features and surprisingly spacious. I had a rare journey sitting in the back recently and was impressed with the legroom and general feeling of space.

          We replaced a decent car with its warranty running out with a new one with a 7 year warranty for very little cost. I also hired an i30 while on holiday a couple of weeks back and, while I quite liked it, I much prefer the Cerato.

          I don't see the point of small SUV's other than them being a bit of a trend thing. The early ones just looked stupid but designs have improved a bit since. Either get a proper SUV or don't bother in my opinion. Small SUVs seem to be just normal cars dressed up a little, just paying extra dollars for nothing really.

          Tuscon and Sportage both offer great value in terms of mid size SUVs. Probably comes down to which you like the look of more.

    • +1

      I was trying to do this for ages around 6 months ago, ended up buying a brand new outlander for 27k as people wanted 24k for a 3-5 year old one.

    • +4

      The used car prices have been over inflated this year, not sure you'd get such a good deal. Been looking at 2018 Hyundai i30 SRs and seing them advertised at prices only 2-4k lower than my mate bought his new.

      • +2

        Admittedly that is a fair response to this. Some cars you're absolutely right, it's a better deal to buy new right now because of the pandemic and supply issues on the used market. I'd say overall you're still ahead buying used for most cars though.

  • +12

    Bought a Kia Seltos Sports+ last year after I had trouble with skeletal problems stopping me getting into my 4 year old Sonata - which I loved.

    So popular that it took 7 months for delivery, but well worth the wait.

    Basically the same size inside as the Tucson/Sportage, but with more safety gear.

    I drove every car in the https://www.whichcar.com.au/reviews/best-small-suv-2020 article and the Seltos ticked all of the boxes for me.

    Anyone who says that small SUVs are a rip off has never sat in one (heaps of room and more than enough for 6' teenagers in the back and heaps of power for suburban and country driving.

    Try a few and decide yourself instead of listening to the pro-SUV and anti-SUV crew here.

    • Thanks for the positive comment!

      • +3

        You're welcome.

        Got negged by Anonymouse who has no opinion to share :-)

        I hope that you enjoy whatever you buy.

    • Isn't this with DCT? at least the top 1.6T varient?

      Are the DCT reliable? Heard very bad things about the VW and Ford DCTs

      Looks like Kia Seltos was recently introduced to India. Many people reported DCT isues and a S/W patch was rolled out.

      https://www.thequint.com/tech-and-auto/car-and-bike/kia-selt…

    • +2

      Saw a Seltos GT Line variant at the shopping centre the other day. Definitely a very nice looking car. Like a mini range rover except the colors were much more bold. Really stands out in the crowd.

    • Purchased the Kia Seltos Sports+ for ~$35k. The interior doesn't feel small and it has a good sized boot. With the exception of the heated seats, the Sports + has the features you are after.

      Got lucky with a 1.5 month wait via the car buyers from Autoexpert.

      If you are considering the Tuscon, there is a significant face lift coming to in H1.
      2021 Tuscon

      • I agree that the Sport+ is the sweet spot for this model, as it has everything except for a few luxury bits that don't appeal to me anyway.

        All of the reviewers agree, BTW.

        The proof lies in the delivery tiles, where the most popular variant has the longest delivery time, as the Sport+ does.

        A good OzBargainer should know this :-)

  • +16

    I always think about the opportunity cost. Do you reallllllly need a $44k car right now? Does it have to be new, have to have heated seats etc. Are those things worth spending the money right now? Can the gratification be delayed?

    What if you bought a decent second hand 4-5 year old SUV for $20k and invested the remaining $24k (shares or towards a investment property deposit). Scale out 10 years and that $24k investment could pay for a nice luxury car if invested right.

    My short answer - no. But it's ultimately your money and personal decision.

    • +7

      Man that hit really hard.

      You are right about the investment in shares. No comparison to buying a depreciating assets.

    • +22

      Don't get me wrong, I'm all about investing for the future.. But as some point I think you also need to enjoy life a bit along the way. You could invest that extra $24k and buy that luxury car in 10 years, but you could also invest that $24k and drop dead tomorrow.

      • +6

        Agreed. Sadly, we're in the same position. Parent in early 60's is suffering from cancer (an enormous shock) with vast assets & money sitting in the bank, worked all their lives for what?? Can't even travel due to very low immunity & risks associated. I'd say enjoy it now as you never know what comes next…. be close with your parents, family & those you love.

      • +5

        Absolutely. And that's where it becomes subjective and personal.

        Do I stop planning and investing just because I could drop dead tomorrow?

        What if I live but become permanently disabled in the future? Would've wished I'd invested that $44k instead of dropping it on a car.

        It's finding the middle ground where you're not making yourself miserable in favour of saving ….. but you're also not splurging so much that could compromise your future savings. The middle ground might be a $10k car for me, a $24k car for someone else and a $44k car for another person and a $144k car for another (all depending on where one is in their life and investment journey).

        As I said in my original comment, the decision is personal and based on where you are in your life and what your outlook on life is.

      • -1

        You could invest that extra $24k and buy that luxury car in 10 years

        Or you could make the same call and get a cut-price used luxury car then too, pocketing yet MORE cash.

        you could also invest that $24k and drop dead tomorrow.

        This philosophy basically amounts to YOLO. Yes there is risk in being financially astute in that you may miss out on some things, but the freedoms it grants you are 100% worth it. Some people on OzBargain are destined to have a mortgage and a job forever and a house and garage full of stuff they don't need. There are alternatives!

    • I bought a Seltos end of last year.

      And I totally wanted to a second hand instead. But the pricing was nuts on second hand cars. And it was really difficult to find anything under 20k in an SUV that was less than 5 years old. Only things i found were hail damaged ASXs and they didnt really thrill.

      I do think this is a good thought exercise for people to go through though. I think almost any other year we would have bought second hand.

    • +3

      There's no way $24k can earn enough for a luxury car in 10 years in any sort of regular investment. Can't realistically expect to earn more than 10% per year (if that), and car prices will go up as well.

      • +1

        Depends on what you define as a luxury car. If it's possible to get 10% growth year on year (which I'm very skeptical about - certainly no guarantee!) that's $62k. You can buy a pretty nice car for that amount.

        • +2

          Yeah… But you are then waiting what, nearly 25% of your working life (say 20-65yo) for enough money to buy an SR5 Hilux 😅 maybe, not even that with price increases in a decade.

          Investing in shares will obviously almost always be the "smarter" use of money, but at some point you do need to just live a bit.

    • Opportunity cost isn't only monetary.

      Because the ultimate sentiment of your post is to only use money to make more, why only invest for 10 years? Why not 50? Why not pass it to your kids?

      Another thing is that $24k means different thing to each person. This is why I'm in favour of reducing all fixed value posts such as this to be in relative terms of 'x months of my disposable income'.

      'Should I buy a new SUV for X MoDI?' Avoids people needing to directly reveal their circumstances.

  • She currently rides a Toyota hatch

    Is your wife the driver or passenger?

  • +6

    Shame that high seating position attracts such a premium. The Kia Cerato GT has everything the Seltos has, pretty much the same amount of space, and a more powerful engine, for about 34k.

    • gives a visible advantage

    • +1

      It's market demand which allows for a premium price for the SUV market and people are willing to pay it. If people like the look of them then I cant argue with that - cars are fun and people should buy what they like.

      I especially agree with them for people with physical limitations (elderly or anyone who has difficulty sitting 'down' into a car).

      The visibility advantage is ironic because all it means is that everyone needs to buy a bigger car than the last person. I still think that a sedan/wagon with a lower ride height is better for most people due to handling/stopping better than an equivalent SUV.

      • +2

        The visibility advantage

        Honestly don't even think there is a visibility advantage, at least in small SUVs. They tend to be bulkier than the small car they are based off and every one I've been in had huge blind spots.

  • +1

    Also Include radar/adaptive cruise control to that list.

    • Great tech, but old now, would be on many 2nd hand cars

  • +1

    Ford Puma, or Escape look decent.

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