Cars

 
 
 

Budget-friendly car buys under $15k

 

Don't buy a used car without a mechanical check.

 
 
 
 
The new Mazda2 will arrive in Canada in 2010.
 
 

The new Mazda2 will arrive in Canada in 2010.

Photograph by: Mazda, handout

Yes, you still can get a good little car for less than $15,000. The selection is better than you might expect and it's about to get even better. There are some fantastic deals out there right now, but figuring out which one is best for you can be more complex. Hopefully what follows and the chart below will help.

All the cars listed have a base MSRP (Manufacturer's Suggested Retail Price) that's less than $15,000. They come in two-door or four-door hatchback body styles and some are also sold as four-door sedans. So, to get started, the price is "suggested", which of course means that you may be able to negotiate an even lower price from a dealer.

Even bigger savings can be accrued if the vehicle manufacturer is offering a limited time special discount or other incentive to purchase (see chart). These can lop thousands off a list price or the normal loan interest payable. In some cases you can even combine a discount with a low or a "no" interest loan. The savings offered, however, may vary depending on the trim level chosen.

Your budget calculations should include the unique extra costs involved in every new car purchase. Allow about $1,300 to $1,500 for delivery charges and other fees, it varies from make to make. There's program, which encourages people to buy a more fuel-efficient vehicle, comes to an end on the last day of June. That's when the HST replaces the PST, if all goes to plan.

While price is very important, a car-purchase decision always comes down to a personal choice and there are lots of other influencing factors. Three popular models that deserve special mention, for different reasons, are the Honda Fit, Toyota Yaris and Hyundai Accent.

A miserly fuel user, the Honda Fit also offers agile handling and an excellent safety package. Highly functional, its clever design and unique interior features make the most of every scrap of space available inside.

Don't let its bubbly looks fool you, the Toyota Yaris is as reliable as a bank (uh -- Canadian bank). Its resale value retention is the best in class, also a tax on air conditioning ($100 -if fitted) and an environmental tax on tires and battery ($20), in addition to PST and GST taxes.

In B.C., a PST reduction is offered on vehicles that achieve a combined (city/highway) 6.5L/100km fuel efficiency rating, or lower. The Honda Fit, Kia Rio (five-speed manual) and Toyota Yaris all qualify for an up to $1,000 point-of-sale (at the dealership -not rebated later) tax reduction or elimination.

This environmentally-friendly tax according to Canadian Black Book, and it's the most fuel-efficient.

The Hyundai Accent delivers higher-than-expected feature content for the money and the three-door has one of the largest interior volumes in the segment. Combined with a stackable package of incentives, it's an outstanding value purchase.

Two new entries to this segment will arrive this summer. The Ford Fiesta is a hot little car that has already conquered Europe and has big North American ambitions. The other is the "cute as button" little Mazda2, which appeared at the recent Vancouver Auto Show.

If you care to wait a little longer, Toyota will be launching its new Scion brand cars in Canada and the Fiat 500 (also at the auto show) is headed our way next year, via the Chrysler dealer network.

Small cars are not only inexpensive, fun and safe; the selection is good and growing.

THE DEALS

Make/Model MSRP

Chevrolet Aveo (2) $13,950 -$16,850 $3,500 /4.99 %/ na %

- Honda Fit (3) $14,480 -$18,780 Hyundai Accent (1) $13,588 -$18,999

- Kia Rio (4) $13,695 -$15,795 Nissan Versa $12,698 -$20,598 $1,500 (SL trim only) /0 % /0.9 % Suzuki Swift $14,715 -$17,055

- Toyota Yaris $13,620 -$19,555 $ na /0% /0.9% to 1.9% Notes:

(1) The cash discount can be combined with a finance or lease offer and Hyundai offers an additional $500 Clean Air Discount on some models.

(2) Eligible customers can claim a $700 GM Card Redemption Allowance and it can be combined the cash discount and finance offer.

(3) There is a 1% lease loyalty rate reduction available for existing Honda Lease Customers. (4) KIA also offers a 90 day payment deferral program on all financing and $750 cash discount with a lease.

- These vehicles qualify for an up to $1,000 point-of-sale PST reduction.

Manufacturer Incentives (BC) (cash discount /% loan /% lease)

$ na / 1.9 to 5.9% /3.9% to 5.9% $2,400 to $3,600 / 0% to 1.9%/4.2% to 6.15% $2,700 to $3,700 /0 % to 3.89% / 1.9% to 3.9% $3,000 /0 % /8.64 %

Bob McHugh is a freelance automotive journalist, writing on behalf of BCAA.

 
 
 
 
 
 
 
The new Mazda2 will arrive in Canada in 2010.
 

The new Mazda2 will arrive in Canada in 2010.

Photograph by: Mazda, handout

 
The new Mazda2 will arrive in Canada in 2010.
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