These days, $20,000 goes a long way when you’re buying a car. Be it new or used. In fact, the biggest problem you will likely have is being spoiled for choice.
If you’re spending $20,000, you’re probably looking for performance that is a bit more comprehensive than “it goes”. Or perhaps you’re buying a second car that you want to be reliable.
We’ve taken a look below at some different options to get the most for your $20k.
Irrespective of whether you’re buying a new car or a used car, you should carefully examine the manufacturer’s warranty, which are typically transferrable. Most manufacturers offer three year’s warranty which means you can buy a second-hand car with low kilometers that is still under warranty giving you a significantly higher level of protection and peace of mind.
But some manufacturers have chosen to offer longer warranties to compete with the more established brands. Hyundai for example offers five-year warranties as standard and Kia has bettered that by offering a whopping seven-year warranty.
Buying a second-hand car for $20,000 gives you a much wider range of options. For a new car, $20,000 will put you in the compact hatch category, but if you’re buying a used car there is the opportunity to trade up to a larger body type, or a more premium marque than you would be able to buy new.
The kinds of cars you can buy for that price will vary widely depending on your location and market conditions, but as an example, this high-spec, seven-seater Holden Captiva would be closer to $40,000 new and this Audi A1 would be more than $30,000 new.
Of course, if it’s a brand-new set of wheels you’re after, then there is plenty to choose from as most of the major brands offer compact hatch backs for under $20,000.
The compact car market is extremely competitive and manufacturers such as Hyundai, Toyota and Mazda have all recently announced significant deals on their compact cars, including the Hyundai i20 and i30 and Mazda 2, ahead of the new year.
Although competitive, the manufacturers will never make a loss on a transaction and you would be well advised to carefully check for other charges added on which may not be immediately apparent in the advertised price.
Demonstrators are also a good value way to get a virtually new 2016 model car for less than $20,000. 2016 models such as Kia Cerato, Mazda 3, VW Polo, Ford Ecosport, Holden Cruze, Nissan Pulsar, Suzuki Swift, Ford Fiesta and Hyundai Accent are all currently available for less than $20,000.
Paul Higgins is Director of HelloCars.