My First Car? What should I get?

[mecha]

First some background info: I'm looking to purchase my first car and have no idea what to look for, and don't know much about cars in general. I currently work from home and would be using it solely for leisure activities at an average of once/day for short trips in the city (<20km mostly). Cost is important but I'm willing to spend some if the car will last a long time and be reliable.

Could you please recommend some models that would fit into my description? Also, is leasing a better alternative for my situation than buying new? Thank You!

[XTrail1]

It's very simple, a Toyota or Honda don't waste your time on anything else. I don't know how big you need but both have offerings at all levels. I'm a big fan of both Toyota and Nissan, we have a Toyota Echo and a Nissan X-TRail, both have been very reliable, Nissan will have 2 new entries in small cars soon but I give the edge to Toyota and Honda for now. I always finance my cars, never lease so I can't help you in that area.

[The General]

Leasing:

You purchase mileage. Usually about 20 000 km a year minimum. With the info you have given, I don't even think you will travel 10 000 km in a year.

So,

48 month lease, 80 000 km.

In your case, 48 months, 40 000 km. Basically, you will be throwing away 50% of your $$.

Don't lease, buy. Get a Toyota Yaris, you'll love it.

[jww]

Having been caught in the lease trap for the past 9 years or so, we decided to purchase our new Sonata as we wanted the flexibility of ownership rather than feeling locked in with a lease. Also - while I have never been hit, lease-end costs horror stories abound.

In short - I agree with The General. Toyota Yaris, purchase.

jww

[The General]

Or wait for the Honda Fit. This car is going to be HOT !!!

http://www.auto123.com/ArtImages/54671/IMG_940680.jpg

http://www.auto123.com/ArtImages/54671/IMG_939979.jpg

[jww]

True the Fit is very nice indeed. IMO world cars like the Yaris/Echo, Fit and others are well worth the price as the manufacturer has to satisfy such diverse needs, tastes and climates. You get a quality car that has been well-thought out.

jww

[mecha]

I started the research and the Toyota Yaris looks nice, but so does the Honda Fit.

I read somewhere that the best time to purchase a car is towards the end of the year or in the summer. Is there a significant difference in bargaining power here or is it just a few pennies difference?

Also, people say its better to buy a used Honda rather than new because of the fact they are so durable. Do you guys agree with this statement?

By the way, thanks for all the help!

[jww]

1 or 2 year old Hondas seem to be good used car purchases. By that time any bugs have normally been taken care of by a previous owner.

New - I prefer the Yaris. It's here now, and it's got a great history in Canada in the former Echo. The Fit is brand new to Canada and you might want to wait 6 months or so first. You can still find some new 2005 Echo hatchbacks around as well - Toyota dealers are trying hard to move them - you might get a good deal there.

If you are buying brand new, historically speaking, July and August are the best months to buy because dealers are looking to move current model year stock to make way for new model year stock. Unfortunately colour and model/trim choices are much more limited then as well meaning you have less to make your selection from.

Also - January is a very slow month for sales of large ticket items and you can often get a good deal on the right car if you are willing to shop, research and bide your time. This was born out by the excellent deal we just got on our 2006 Hyundai Sonata. Buying in January, we offered to close before Jan 31 so they could book the sale and took one out of current dealer stock. We paid dealer invoice +$750 with no freight & PDI (additional savings of $1345) plus a number of accessories at cost. That's a deal that is hard to come by anytime. Taking a car out of dealer stock is a great way to incent a dealer to close to your price.

Buying a brand new model when it first comes out is generally a tough negotiation as everyone wants the car, and supply is in short demand. This was the case when the new Civic was released late last year and is typical for any new model.

jww

[SyChO]

I just came back from the Montreal Auto Show about 2hours ago and I saw the Fit up close and I have to say it looks pretty "blah!". If you want a good idea of what it looks like in person simply go to your Suzuki dealership and look at a Aerio. I believe they have that same rectangular shape to them.

As for the Yaris, I was very close to purchasing one but backed out at the last minute because it is "freaking" expensive for a car that size! Right now I am liking the Kia Rio5 (hatch) which is fully loaded @ $16.5k (manual trans.)

But... I must say my crush of the autoshow is the upcoming Nissan Versa! What a sweet looking ride. I love, and I do mean LOVE, the Mazda 3 Sport and it reminds me of it while being smaller and WAY cheaper! The Versa is set to have a base MSRP of $14.5k! Also, while its as cheap as other sub-compact cars it actually has the space of larger cars (i.e corollas, mazda3, civic etc) and not so much like the Yaris, Swift, Aerio, Aveo etc.

Check it out! I took some pictures with my camera phone and will post them when they are transfered (infrared isn't very fast!).

Cya!


By the way, I am new here so.... Hello to everyone!

[apl16]

i also like the new yaris. i have owned an echo hb for 2.5 years and have had no problems. if you are trying to keep your costs down, find an '05 echo hb because abs is standard equipment while the yaris only has it in a $3k package :( .
the fit will likely be an excellent choice as well.

[pogs]

1 or 2 year old Hondas seem to be good used car purchases. By that time any bugs have normally been taken care of by a previous owner.

New - I prefer the Yaris. It's here now, and it's got a great history in Canada in the former Echo. The Fit is brand new to Canada and you might want to wait 6 months or so first. You can still find some new 2005 Echo hatchbacks around as well - Toyota dealers are trying hard to move them - you might get a good deal there.

If you are buying brand new, historically speaking, July and August are the best months to buy because dealers are looking to move current model year stock to make way for new model year stock. Unfortunately colour and model/trim choices are much more limited then as well meaning you have less to make your selection from.

Also - January is a very slow month for sales of large ticket items and you can often get a good deal on the right car if you are willing to shop, research and bide your time. This was born out by the excellent deal we just got on our 2006 Hyundai Sonata. Buying in January, we offered to close before Jan 31 so they could book the sale and took one out of current dealer stock. We paid dealer invoice +$750 with no freight & PDI (additional savings of $1345) plus a number of accessories at cost. That's a deal that is hard to come by anytime. Taking a car out of dealer stock is a great way to incent a dealer to close to your price.

Buying a brand new model when it first comes out is generally a tough negotiation as everyone wants the car, and supply is in short demand. This was the case when the new Civic was released late last year and is typical for any new model.

jww

WOW!!!

How did you negotiate not paying the frieght and pdi and just paying $700 above the dealer invoice cost?

On average how much are cars marked up? For example the CRV or Forester?

thanks,
pogs

[jww]

...
WOW!!!

How did you negotiate not paying the frieght and pdi and just paying $700 above the dealer invoice cost?

On average how much are cars marked up? For example the CRV or Forester?

thanks,
pogs
Power negotiation ;)

Seriously, I did a ton of homework, had three different manufacturers vying for the business, and used our desire to close quickly to incent the dealer to move. I wasn't interested in playing games - got up to walk more than once in two of the three dealers, brought along my laptop with my cost data spreadsheet and my trusty HP 12C financial calculator so they couldn't play any rate and payment games with me. The sales rep was admittedly over her head, and pulled in one of her managers who is very experience, and recognized our hot buttons right away. I think it helped that the factory to dealer incentives for Hyundai Sonatas are very good right now, as well, I don't think that January was being a very good unit sales month for them either.

My position on the freight and PDI was that the car was already in their lot - so I didn't think I should have to pay for something already there. It was a fun point to negotiate, but don't forget, dealer invoice usually includes the factory freight and prep rate (around 50% of what the dealer charges). Thanks to cybercars.ca who are quick to turn around invoice pricing via email for free (woohoo).

This was the best new-car acquisition experience we have ever had.

jww