Best cars to buy in order to save thousands amid cost of living crunch
Despite skyrocketing car prices, there are ways to beat the cost of living crunch if you’re prepared to compromise when buying a vehicle. One simple change can make all the difference.
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Car prices have skyrocketed in the past couple of years but there are ways to beat the cost of living crunch if you’re prepared to compromise.
New-car buyers can save thousands of dollars by downsizing, choosing a smaller engine or forgoing expensive features such as all-wheel-drive.
Sydney car broker James Whitbourn, from carhelper.com.au, said buyers could save by properly matching their car to their needs and “not following the fashion”.
“I think that sometimes the decision to buy an SUV is made almost by default, because that’s what people buy, but I think you can get better bang for your buck in a wagon. You get more cargo room for the same price point,” he said.
Mr Whitbourn said some buyers also spent thousands of dollars extra for all-wheel drive, which was nice to have if you regularly ventured off road but not essential for the suburbs.
“There’s a little bit of a perception, particularly for Aussies, that we might need all-wheel drive to head off road or get down a trail to a property. The reality is that a two-wheel drive with stability control and other safety features will do the job that most Aussies need it to do quite well, for less money,” he said.
Toyota’s Kluger is GX is roughly $56,500 drive-away in front-drive guise, while the all-wheel-drive version is $60,700.
Mr Whitbourn said the principle even applied to tradie utes.
“Those cars have their rugged image. You kind of think it should be four-by-four but in reality it’s on the road 95 per cent of the time or more. It doesn’t need to be all-wheel drive. Two-wheel-drive will do the same job. for less money.”
Australia’s number one selling vehicle, the Ford Ranger, is available with a four-cylinder turbo diesel engine and 2WD for about $62,000 drive-away. Four-wheel-drive costs another $7500.
Engine capacity is another choice that can save buyers thousands.
The V6 version of the Ranger costs roughly $4300 more than the four-cylinder.
Small city-focused SUVs also come with a choice of engine sizes and two-wheel or four-wheel drive.
Hyundai’s Kona is available with a sporty N-Line pack for less than $40,000 drive-away when matched to a 2.0-litre four-cylinder and front-wheel-drive, but the all-wheel-drive version with the 1.6-litre turbo engine costs about $44,200 drive-away.
Whitbourn said advances in engine technology meant that smaller engines rarely felt underpowered.
“For a number of years you’ve been able to buy a small-capacity four-cylinder turbo – particularly with the European cars – that have what was previously V6 power. They’re little engines but they just have the torque where you need it. So a really great way to save some money is to get a little engine,” he said.
Whitbourn said buyers with younger families could save money by choosing a part-time seven-seater such as the Mitsubishi Outlander or Nissan X-Trail, rather than a full-sized 4WD.
“At a much lower price point, you can get into a seven-seater that might not be as big as some of the dedicated three-row cars but it actually does the job because you can throw in a couple of extra kids occasionally,” he said.
Most small SUVS had grown in size over the years and were now viable options for families with small kids.
At the same time a new breed of “in-betweener” SUVs such as the Hyundai Kona and Honda ZR-V had slotted in between mid-size and compact SUVs.
“That’s actually one of the bigger ways to save a dollar on right-sizing the car because in the baby class, they’re really chalk and cheese. There can be some cars like Mazda CX-3s that are just not really that practical. But for a similar price point the entry-level Kona is huge by comparison and would almost do the job of a medium SUV.”
Then there’s the humble hatchback. Mazda’s 2 hatch costs about $26,600 but is mechanically identical to the CX3 SUV, which costs $30,900.
HOW SMALLER CAR SWITCH WORKS FOR RETIREES
Retirees Anna and Andrew Kowalik are happy with their decision to downsize from their Hyundai Tucson SUV to the smaller Kona.
“You know, I am really happy with this car,” Anna said.
“I wanted a smaller car and it has all the safety features the bigger one had. It costs us less because it’s more fuel efficient as it’s a smaller car and I really like the look as well,” she said.
While the Kona is smaller than the current model Tucson, it isn’t far off the size of Anna and Andrew’s older Tucson.
“The inside space is almost the same as the Tucson. There’s not much difference. It’s just the outside,” she said.
And the cheaper car had more features for the money.
“We have a big screen, so it’s easier to see things and I think the inside design is actually better,” she said.
HOW EACH CAR COMPARES
Hatchback vs. SUV
The Mazda 3 hatchback and CX-30 SUV share the same engine and much of the same features and safety tech. They are identical in width but the hatch is longer. The CX-30 has slightly more luggage space but the hatch has more room between the front and wheels, which typically means more leg room. Rear headroom is slightly better in the CX-30, but the hatch uses less fuel.
4WD vs. 2WD
Ford’s Ranger XLT five-seater is available in two-wheel drive with a four-cylinder twin-turbo diesel for $56,190. If you want on-demand four-wheel-drive the cost jumps to $63,390. But for many tradies, 2WD is more than enough for work sites and the odd gravel road. Ford also recently added its “hi-rider” pack as standard equipment on the 2WD model. The pack lifts the ride height and adjusts the suspension to make it more suitable for rough roads.
SUV vs. wagon
Skoda’s Octavia wagon is a good bet for those who don’t crave a high-riding SUV. It is roughly $1500 cheaper than Skoda’s similarly sized Karoq SUV, shares the same four-cylinder turbo engine and is more fuel efficient. It sits lower to the ground than the Karoq and has less head and shoulder room, but boasts a bigger cargo area.
Mid-size SUV vs. compact SUV
Hyundai’s new Kona compact SUV is wider and longer than the model its replaces, which moves it closer in dimensions to the larger, more expensive Hyundai Tucson. So if you’re looking to trade in a previous generation Tucson, you’ll find the new Kona could meet your needs. Its about $4000 cheaper and its 2.0-litre four-cylinder is only marginally less powerful than the Tucson’s, It also uses roughly 20 per cent less fuel.
Large seven-seat SUV vs. medium seven-seat SUV
Toyota’s seven-seat Kluger is roomy but expensive. If you’ve got a growing family but a limited budget, a smaller seven-seater might do the trick. Mitsubishi’s Outlander is a mid-size SUV that comes with seven seats from roughly $45,500 drive-away. That’s $11,000 less than the cheapest Kluger. The third-row seats are squishier but fine for small kids. You can also squeeze teens into them for shorter trips. It’s down on power compared with the Kluger but has a generous load space when the third-row seats are folded.
Originally published as Best cars to buy in order to save thousands amid cost of living crunch
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