I have recently been considering getting a new car. My 2001 Ford Escape is a gas guzzler, getting 16 mpg on average and probably doing much worse (12 mpg?) in the city. It is also getting kinda old (7 years) and I’m thinking of selling it off now when I can still get a good price for it before it starts giving any serious trouble.
Actually, I’m thinking of getting a new SUV to be more exact. After driving a SUV for more than a year, I realized that the extra space has come in a lot more useful than I had thought. Not only did it come in useful when moving, it was also very helpful when I needed to haul stuff around for camping or hiking trips. Besides the extra space, I like the high ground clearance (able to navigate unpaved roads with ease) and also the feeling of being big on the road (given that I am shorter than most people here in the US).
So, with the intent of getting another SUV and having the high gas consumption of my current car as my chief complaint, the first choice that came to mind was the Ford Escape Hybrid. Its basically the same SUV as what I currently have, but with a gas-electric hybrid engine that allows it to have a much better fuel economy (about 29 mpg on average). I quite like the size and design of the Ford Escape, so I wouldn’t mind getting the same car (with a better engine) again. The only caverat is that the extra-high economy comes at a premium, about US$28,000 (ok, I know this is nothing compared to the price of cars in Singapore (US$50,000 for a Toyota Corolla), but its still a lot).
My second choice (which wasn’t really a choice for me, ‘cos I was quite intent on getting the Ford Escape Hybrid) is the Toyota RAV4. This has a normal gas engine so it uses slightly more gas than the Escape Hybrid (about 24 mpg average). However, this is a Toyota, so better quality and a higher resale value can be expected.
So, with these two in mind, I went on Saturday afternoon to do some test driving. I first went to the Ford dealer to try the Escape Hybrid. It was a terrible experience from the very start. I walked into the dealership and no one seemed to be interested in helping me (despite all the car salesmen standing at the corner chatting). I went up to the reception and asked for a salesman and when I finally got one, he didn’t appear too interested in trying to sell me the car. I went on a test drive anyway and I was rather disappointed with the car. It was less powerful than I expected and the gas engine was much nosier than I had hoped. The SUV didn’t seem to run on the battery very much as the gas engine kicked in whenever I accelerated or when the AC was turned on. Needless to say, I left the dealership very disappointed, partially due to the car and mostly due to the level of (or lack of) service I got. I am a very picky customer and I would not stand for poor service, even if it means paying a lower price.
I then went on to the Toyota dealer. There, I was immediately approached by a salesperson who was much more helpful than the Ford guy. However, he immediatly gave me a whole load of BS about how high in demand the Rav4 was, how hard it would be to get one, that the waiting list was very long (which he then followed by saying he could get me one without any problem (???)) etc. It really felt like a set up to get me to settle for a higher price. Anyhow, I managed to get a test drive in the (only) Rav4 left on the lot, and man, what a big difference it was compared to the Escape. Having driven a Ford for more than a year, I’ve forgotten how well made Toyotas are. The engine was smooth, quiet and had very good acceleration for a non-V6 car. The suspension gave it a smooth ride and the interior was well designed and definitely did not have the cheap material feel I got from the Ford. Everything about the car said quality. Just a minute in the Rav4 and the Escape Hybrid was struck off my list.
Anyway, to cut the long story short, I decided to get the Rav4 should I decide to get a new car. It’ll probably set me back about US$25k (with the Limited version containing all the options besides leather seats). All I need to do now is to decide if I should get a new car. The reasons I gave at the start of this post is probably not reason enough to justify a new car. I guess I’m just tempted by the prospect of having something newer and better. A Rav4 would definitely be an extravegant purchase (although it’ll still be cheaper than a Corolla in S’pore
), especially for someone who just started work 6 months ago. I talked to my Mum about my dilema and I was actually surprised by the advice she gave. She told me that if I want it, I should go ahead and buy it. Her reasoning is that everyone goes through these phases of wanting stuff and its perfectly fine sometimes to be extravegant on myself. Afterall, I would only be young this once and since I’m making a decent salary and would not have too much trouble paying off the car (over the next 3-5 years). If I really want it and since I’ve been working so hard, she says I should go ahead and reward myself. As I said, this was a surprising statement made by someone who put a lot of effort into incalcating the habit of saving into me ever since I was young.
Anyway, I’m still thinking. $25k (ok, actually it’ll be more like $12k after I sell my car and also account for the savings in gas over the next year and a half) isn’t a small sum and it would definitely be more useful if I saved it up for the future. But its not that I won’t have anything left to save if I buy this car, it’ll just be less. So where do I draw the line between saving everything I can for the future and using some now and saving less? Should I or should I not buy this car?