My First Car Purchase - assistance required

[Keith009]

Well, I did a status update on facebook and it generated heaps of replies so I thought I'd tap into the collective wisdom here too. I really know zilch about cars but I thought there might be a few car experts here.

For my First Car Purchase, I'm looking for a brand new small-medium sized car with a budget of approx $30 000. I want a 5 door hatchback, and it has to be auto. I am also planning to buy at the end of this financial yr on the advice of the other half's sister in order to get some special deals as people would be trying to clear their stock.

Can anyone tell me what kind of technical features I should look out for? I want a great safety rating if possible, and of course something that looks sleek and fetchin'. Interior comfort also a plus.

On my shortlist currently:
- VW Golf Trendline - 5* safety rating. Has 7 airbags. VW is generally solid
- Fiat Punto Dynamic 1.4 - sooooo cute! 5* safety rating (though by the European rating organisation - i assume they have similar standards). Fab price point too. Plus not as common as the rest so there's brownie points for the cool factor
- Mazda 3 Neo - meant to be one of the safest cars at that price point according to an article i read
- Toyota Corolla - not exactly trendy but i thought they must be so popular for a reason, every 2nd person i know seems to own one of these or a Yaris

Mini Coopers look really cool too, and I'm told rather solid since they're made by BMW. But they're a bit small and only have 3 doors. And a bit beyond budget.

I'm mainly looking to do inner city driving, and the occassional roadtrip so I don't need something super powerful to win the Grand Prix with or anything like that.

TIA for any advice.

(PS - i swear, this has to be more complex than buying a house...:/)

 

[NM]

Do you have access to a service such as Austwide Motor Search (google is your friend)? I expect there are several such service companies around. I have access to this one through a program my employer subscribes to and have used it twice for new car purchases. Both times I used them to get the best price deal and then dealt directly with the dealer. Each time it was $150 well invested. I told the dealer I was going to use this company to find the best price and if they would beat the price by at least $150 they had my business. Each time the dealer complained and squirmed but did beat the price by at least the $150 service fee.

You choose the make, model, colour, extras etc you want and get a quote. Then provide the details to the search company. They get quotes at "fleet" rates from multiple dealers and provide you with the best quote. If you choose not to purchase through them, they charge you a fixed fee. In my case the fee was $150.

I used this last year to purchase a car similar to what you are seeking (manual, not auto) and managed about $2000 less than the best price I initially had from a dealer. About 4 years ago I saved around $8000 on a more expensive new car purchase.

Initially I felt a bit bad using them to get the best price and not purchasing through them, but in the end they made $150 for sending off a few faxes and a little effort, so I am sure they more than covered their costs. And I purchased through the dealer that put in the effort to "sell" the car - spending time and effort on all the options, test drive etc. So in the end I am confident I got the best deal available for the car I had chosen at the time I wanted to purchase. I was quite up-front with the dealer about my intentions to use the price search service that was available to me through my employer-sponsored program, so there was no surprise when I came back to them with the price they had to beat.

 

[Keith009]

I don't know that program but will certainly look into it! I think I'd still see a dealer at some point to get the 'full service' - i mean, if I want to buy something like a car I want to physically check it out first. Someone told me about a similar website but I can't remember what it was ...:/ I believe it's free too, i think they simply do a web search for you.

Do you get some time to decide whether you want to purchase through Austwide Motor Search after quotes are produced? I mean, I'd go and do a test drive, then return to purchase through them if the dealer wouldn't play ball in the manner described.

I'm also paying up front so that ought to bring the price down. No point doing financing for a depreciating asset. I suppose I'd have to pay by cash/cheque for the best deal though, rather than insisting on AMEX payment.

 

[MelUser]

Out of that list I would choose a Golf - diesel of course as you get better fuel economy.

Definitely NOT the Corolla.

 

[Mal]

Out of that list I would choose a Golf - diesel of course as you get better fuel economy.

Yeah, I like the golfs. Except for a mini or a base BMW, I'd suggest it has the best 'pulling power' out of all the cars in your list. (And yes, I realise you're attached, but they are nice cars too).

I always liked the Mazda SPxx cars, but never actually purchased one to see if it met the reality of the appearance.

 

[djfuzz]

As a fellow Golf driver, I also back your VW choice, especially the sexier 2009 model - I have the regular engine, Comfortline and as above would recommend spending a bit more in order to get the diesel version (and Comfortline as well if you can squeeze it in). Mine is now five years old, but still feels brand new, and is still a pleasure to drive.

Having said that, I have my eyes on a Prius i-Tech at the moment, but that's not on your list.

[Edit] I note that safety is a concern - a couple of years ago I was hit on the driver's side door by a solid Merc (their fault of course) and had three Airbags activate on me. Slight change in circumstances and I would have been dead. The car crumpled perfectly and the key airbags inflated (perhaps a little too vigorously) - but other than a minor bruise I came out unscathed. I'm sure the other cars you've listed have similar benefits, but all I can do is vouch for the safety credentials of the Golf from personal experience.

 

[Keith009]

Out of that list I would choose a Golf - diesel of course as you get better fuel economy.

Does it cost more to pump diesel into a car vs petrol? Or is the diff negligible?

 

[NM]

I don't know that program but will certainly look into it! I think I'd still see a dealer at some point to get the 'full service' - i mean, if I want to buy something like a car I want to physically check it out first. Someone told me about a similar website but I can't remember what it was ...:/ I believe it's free too, i think they simply do a web search for you.

Absolutely check it out through the dealer. That is what I have done both times I used this service. Find the car you want by visiting the dealers and checking out all the options and take them for test drives. You have to get a quote from a dealer before you go through the search company anyway. And you are not committed to buy through them, but they do charge a service fee (was $150 when I used them) that is refunded if you buy through them. In both my cases I declined to purchase through them but used their price to bargain the dealer to match it (less the $150 I had paid to the search service company).

Do you get some time to decide whether you want to purchase through Austwide Motor Search after quotes are produced? I mean, I'd go and do a test drive, then return to purchase through them if the dealer wouldn't play ball in the manner described.

you have some time to think about it. Maybe a few days. But by the time you get them to quote you should have already decided exactly what make, model, colour, options etc you want, so should have already taken test drives etc. Should them be a quick return visit to the dealer to ask them to match the price. If they won't then you can choose to accept the search prividers quote and they will actually have the car delivered to your chosen address if you want.

I'm also paying up front so that ought to bring the price down. No point doing financing for a depreciating asset. I suppose I'd have to pay by cash/cheque for the best deal though, rather than insisting on AMEX payment.

Price really won't vary much for paying "cash" verses financing, unless using the dealer finance options and that is often more expensive than other finance options available. If using the dealer finance option they may have a little margin to play with, but if financing through a bank or paying cash it makes no difference to them - they get a cheque for the purchase amount.

Many dealers will happily accept Amex for a deposit. For a $30K car you will likely be asked for around $1000 deposit. I was not asked for any surcharge on the Amex for the deposit, so make a comment like "lets just make it $2000 deposit now and that's $2000 less I have to pay when I pick it up". That was not a problem. The dealer takes Amex with no surcharge for service work so was happy to accept for the deposit. I was not sure how far I could push the deposit amount before thought of a surcharge would come into play.

 

[SnowYeti]

Not the Yaris or the Jazz since your budget is more.
Corolla is OK, and VW is great. I think Corolla has great value.

What about the Mazda 3 SP25, a bit more money, but more performance

There is alot more choice out there since you're into the price mark of around $30k.

Make sure it comes with blue tooth, or they throw it in for free.

I buy a new car every 2 years, but the type of cars I buy these days are SUV/4WD because of my snow adventures, and those cars are out of that budget. I won't buy something without ABS or traction control of some sort for city driving in the rain.

Make sure you research into what concessions / tax reductions you can get if you can use the car for business, ie between clients or other business you may do.

PS. If you're not keeping the car for more than 3 years, don't bother with the paint protection, I think it's a rip off, but that's my opinion!

And, if you finance, don't bother with the car dealer finance, it's terrible.

Do your shopping and negotiating. A couple of dealers have been black listed by me, because I've gone in and wanted to buy a car, but none of the sales people want to help. Apparentally looking young and wearing casual shorts and t-shirt does not mean you have the means to be able to buy a new car. Bah! Gotta love sales people who discriminate based on looks!!! You never know how much someone has or prepared to pay until you get into discussions.

And also don't be scared to look into the country for pricing. e.g. If you lived in Sydney, you could get prices for a BMW in Orange instead of Rush Cutters Bay, the difference could be $4-6k depending on what you get. And they will deliver it to you in Sydney.

 

[Keith009]

Seems a near-unequivocal recommendation for the VW Golf so far. The other half's sister also recommended the same, or a certain Alfa Romeo model.

I was going for the Golf Trendline but it'd seem I need to pay extra for a "Comfort Pack" to install cruise control. At least all the safety features are standard. It'd seem almost worthwhile to go for the Comfortline? I don't think I'd be specing it up that much - i certainly don't require the sat nav (could get one myself seperately for much cheaper) or leather seats etc. But i do want cruise control, and the comfort pack installs a lot of the stuff that's standard in the Comfortline anyway.

Sorry for the n00b questions.

 

[straitman]

Something that has not been mentioned here is the ongoing maintenance and running costs. Whilst not quoting from personal experience, but from that of friends be aware that the upkeep of a VW can be quite expensive when compared to a few others.
(An unrelated example is that my Chrysler 300C costs a little more than half to run when compared to my Subaru Outback)
The other car that comes to mind is the Hyundai I30. A friend who does about 55,000km per year has one and loves it. I have driven it and the VW Golf and thought both were OK.

 

[Keith009]

I've been warned that the maintenance costs and getting parts for European cars can be hideously expensive. And the cheapest are apparently Toyota and Ford.

 

[Ric]

I would go for the Golf but make sure you get Stability Control (ESP or DSC) with it.

 

[Keith009]

Something that has not been mentioned here is the ongoing maintenance and running costs. Whilst not quoting from personal experience, but from that of friends be aware that the upkeep of a VW can be quite expensive when compared to a few others.
(An unrelated example is that my Chrysler 300C costs a little more than half to run when compared to my Subaru Outback)
The other car that comes to mind is the Hyundai I30. A friend who does about 55,000km per year has one and loves it. I have driven it and the VW Golf and thought both were OK.

You might be on to something there as there's quite a good review of the I30 here:
http://www.topgear.com/au/hyundai/i30

I'm still rather iffy about Hyundai however...

 

[Keith009]

Any comments on the Fiat Punto Dynamic 1.4?

It looks similar in dimensions to the Golf (from the pics) but I see that it's categorised as a 'light car.' The much lower price point is attractive for a similar style and features!

The lack of auto transmission is a concern but they have "dual logic transmission" which is kinda auto?

 

[simongr]

I've been warned that the maintenance costs and getting parts for European cars can be hideously expensive. And the cheapest are apparently Toyota and Ford.

You have to consider total costs of service rather than just the cost of parts. For example your cheap cr4p asian car may have cheaper parts but that is partly because they have more of them to sell as they are repaired more often. Your VW is much more reliable and thus wont need servicing as often - bt that is a long game and not a short game.

I think in fact that recently BMW were scored as one of the cheaper vehicles to maintain due to their reliability...

Jus a couple of thoughts - I wouldnt buy a new car - I have "been there done that" and been burnt too often. Sure a new car is nice to have but unless you are passionate about cars why burn money you don't need to.

For example try a search on carsales.com.au for a used BMW less than 30K and newer than 2005 - some nice 5 door 1 series BMWs there.

Again just to challenge your asumptions - why a 5 door car for driving round town? You're a little feller why not take a 3 door option. The seats will fold down for buying furniture from IKEA

The only standard brands I personally will buy are:

Volvo
Audi
VW
Jeep

In a few years I hope to add Jaguar and subsequently Aston to that list

 

[IainF]

Does it have to be brand new ?
I only buy used, but top flight, can save you 40% on new even if the car is only 7-8 months old..
A massive example is my boss.. He bought a BMW M5, brand new $280,000..... 12 months old with 15,000 kms on it...$140,000.
My car was $120,000 new. 12 months later we paid $70,000.
May I suggest you look at something like BMW 120 second hand.
Solid, safe and will drive really well. My wife has the 120 convertible and loves it.
Has Nav, ipod connection etc etc...
Check out a mates business...
Schulz Motor Auctions' used cars for sale on drive.com.au Australia

Give you an idea of what costs what...

 

[munitalP]

...I think in fact that recently BMW were scored as one of the cheaper vehicles to maintain due to their reliability...

...

For example try a search on carsales.com.au for a used BMW less than 30K and newer than 2005 - some nice 5 door 1 series BMWs there.


In a few years I hope to add Jaguar and subsequently Aston to that list

the beema offering above is correct - you will get a 118 in that price range maybe even a 120, iPod dock, push button start, leather interior - how could you not want a BMW QF?

I thought I have converted you driving around MEL with the roof down and the Harman Kardon super hifi night club quality pumping a bit of MOS on the way to dropping you home! I did think to myself, "well, when QF buys himself a car, it will be a 3 series convertible for sure..."

LOL - Simons right though, new car in the 30's - V limited choices, ex lease BMW, Audi or similar in the same price range - i know where I would be looking.

Good luck and BTW - passionfruit Mojitos - sensational -5 before bed!!

Mr!

:shock:

 

[markis10]

Any comments on the Fiat Punto Dynamic 1.4?

It looks similar in dimensions to the Golf (from the pics) but I see that it's categorised as a 'light car.' The much lower price point is attractive for a similar style and features!

The lack of auto transmission is a concern but they have "dual logic transmission" which is kinda auto?

Are you chasing the 50K of Velocity Points

 

[medhead]

Does it cost more to pump diesel into a car vs petrol? Or is the diff negligible?

Diesel is more per litre but you should more then make that up of fuel efficiency, especially for city driving. However, I'm not sure that the efficiency is enough to may off the extra cost of getting a diesel engine.

Along those lines Have you considered the frence options from Peugeuot and Citroen. My boss has a C2 diesel and he loves it. I think Peugeuot score pretty high on the top gear Cool Wall - iirc.

Corolla's a numereous because they are considered cheap and parts are cheap. Numereous and cheap don't seem to be words that suit my picture of you.

If a dealer wants to sell you a car you will have no problems having as many test drives as you want. In doing the test drive they will try to take you on a limited little route, that they know well. Don't accept that cough, you need to drive the car in a range of conditions and road types. My cousin will often go back to a dealer a number of times to test drive a car, and so much that they let him take it out himself, if they think they are close to a sale.

As for the Mini. my personal view is that this is just in the market to cash in on the original Mini Cooper, which was heaps good and probably also heaps dangereous because of the same size. The new mini is bigger, no doubt because of the safety factors, and has not as good performance and overall is not a touch on the original. Hence, I think the people who buy it a pretencious with no sense of history of what they are supposedly valuing, or they know nothing. These are general statements and I'm sure any mini owner here is the exception to my rule.