Would like to buy an $8k-$10k second-hand SUV in the near future, but unsure of the best route

[michael0830]

I would like to potentially buy an $8k-$10k second-hand SUV to do some adventuring in the near future, but unsure whether I should;

A: Pull the cash from TFSA/RRSP.

B: Look at bank loan/financing options.

C: Reduce my TFSA contributions for a few months and build up the funds to buy in my HISA.

Current Details:

Chequing: $7.5k [BMO performance plan - has to be $6k min before fees kick in]

TFSA: $24k

RRSP: $18k (Now just putting in enough to get company matching $$)

HISA: $1,5k

No credit card debt or other loans.

Rent: $2,250 p/m

 

[athanasius1007]

@michael0830 Might be a whole different type of adventure with an $8k SUV than what you are expecting.

 

[togekiss]

@athanasius1007 Agreed. 18k can get you a 10 year old reliable Toyota.

Op needs to save more. An 8-10k car in this used car market will likely have a high risk of issues.

 

[athanasius1007]

@togekiss Even $18k for an SUV in this market might be cutting it close

 

[togekiss]

@athanasius1007 I just spent 20k on a 2012 Highlander. Clean history. I'm happy with it.

 

[forhislight]

@togekiss The Highlander is not an SUV.… it's an Alllwheel drive hatchback.

 

[togekiss]

@forhislight Lol, no...it's an SUV.

 

[livvv2001]

@athanasius1007 100% agree on this. You can buy a 8k vehicle but all vehicles eventually need bigger ticket parts replaced.

This is why you see 10-15 year old models rolling around like they one or more corner is lowered..... when in reality the suspension is blown and no one wants to put 2k into a 8k vehicle. Who knows when the next 2k repair comes up.

 

[ocorthodox]

@athanasius1007 how much should one be spending for a reliable used car now a days?

 

[johnnyhouse]

@ocorthodox Car, truck, or SUV?

 

[ocorthodox]

@johnnyhouse car or small suv

 

[johnnyhouse]

@ocorthodox Crossover (small SUV) that will be reliable. Look at Mazda CX-30, Mazda CX-3, Toyota RAV4, Toyota Venza, Honda HRV, Subaru Crosstrek, Mitsubishi RVR. Look at anything 120Kkm and under. In Canada, newer is more important than lower mileage (rust takes time, not distance)... So if a 2015 60K cost the same as 2017 with 100K, go for the 2017.

Reliable cars: anything Toyota, any Honda except the 1.5L engine ones, any Mazda. Same advice about mileage and years.

Or you can just tell me your budget, and I'll tell you which car you should buy. Anything under 10K will NOT get you a reliable crossover, it might get you an older reliable sedan though.

 

[ocorthodox]

@johnnyhouse Thank you for explaining. My budget is around 8-10k, what older sedan would you recommend? Thank you again

 

[johnnyhouse]

@ocorthodox No worries. Cars are my passion (and used to be my profession as well).

For 8-10K, if you drive over 15Kkm\year, I'd go with an older Toyota Prius. But in case of hybrid, mileage trumps year (battery degradation).

If your drive less than that, a Corolla or a civic (2015 and older, because that's before their 1.5L engines were invented).

My guess is that it will be about a 2011-2013, with 90Kkm-140Kkm at that price range. I would not recommend the Mazda 3s before 2013, because that was before they switch to their skyactive system, and when they had bad body rust issues (but they are amazing value after 2013). At years earlier than 2012, Hyundai Elantra will also be a good bang for the $$$ (if you can get it 2K cheaper than a comparable mileage\year to the others). After that year, they started with their Theta II engines, and those blow up too often, so I don't recommended them.

 

[ocorthodox]

@johnnyhouse Thank you so much for the information, this was very helpful and I really appreciate it. Would you say the Nissan Rogue years 2010 or 2011 be okay? Thank you again

 

[johnnyhouse]

@ocorthodox I would not recommend any Nissan. They're cheap for a reason. Their CVT (transmission) is pretty trashy. The survivers from that era are lucky, but luck runs out eventually. Stick with the list I gave you, and ALWAYS take it to a dealership (not the one you're buying it from), for a pre-purchase inspection. Don't trust any inspections given to you by the seller (no matter if it's a private or dealer deal). Also, spend the $50 for a Carfax report, it can save your thousands in the long run.

 

[ocorthodox]

@johnnyhouse Thank you so much!

 

[heatherssister]

@johnnyhouse Do tou have any recommendations for a

 

[johnnyhouse]

@heatherssister Up to 30K will get you lots of good used ones. After reliability (which will be #1), what's the most important thing for you? Fuel efficiency, Looks, Performance, comfort, features (tech). Put these 5 attributes on a list here from most important to least important, and I'll make a list of models for you. Yes, you can get a good used hybrid at that price, but just be aware that hybrid are worth it only if you drive more than 15Kkm\year. That's because compared to the same year and mileage, they are about 3K-4K more expensive, and to break even between a 10L\100Km car vs a 5L\100Km car, it will take you about 50Kkm. Hybrids are worthless if you drive mostly highways as well (they get the same mileage as non-hybrids on the highway) if they're not plug-in hybrids. So if you mostly drive urban, a hybrid is a good idea.

So, to sum up, I need your desired attribute list, and your driving habits.

 

[heatherssister]

@johnnyhouse Wow, thank you. Interesting point about the hybrid mileage to break even - I’m not sure I’d do 15k/year. More likely to be in the 5-10k range. I’m most interested in fuel efficiency, and to be honest I don’t know what performance is if not fuel efficiency. A car is really a point a to b thing for me, so looks and tech come last. I want some that can handle the city and the occasional trail head, but I’m more likely to be driving on city streets than highways.