Automotive

Non-resident looking to buy an SUV - the best choice?

  • Last Updated:
  • Jul 2nd, 2020 12:22 am
[OP]
Newbie
Jun 29, 2020
3 posts

Non-resident looking to buy an SUV - the best choice?

I have around $12k in cash + few thousand available on credit cards + some debt on credit cards (around $10k). Not looking for sub-compacts, should be larger than a Tucson/Rogue + and must have AWD.

What would be a good option for me, I'm thinking of keeping the car for at least 4 years.

1) Go for what I can buy for $12k (Sorento / Santa Fe 2010-2013) - I'm not considering Dodge, Fiat or Ford.
2) Try to get a short-term loan and put $12k as down payment - Look for a car in $22-25k band (no success on loans so far)
3) Use the $12k to pay the debt and re-try full loan for $22-25k band (risky if it doesn't go through again since I'm not a resident)
4) Go even lower and get a $6-8k one (2006-2008 model years) and drive it to the ground + keep the remaining balance for any potential repairs

Thanks!
18 replies
Deal Expert
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Jul 30, 2007
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Toronto
4. I suggest

Then use some of your cash to pay down (50% if possible) the credit card balance. Managing your debt takes precedence over any vehicle imo.
Jr. Member
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Jul 12, 2013
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Saint-Bruno-de-Monta…
Pay off your 10k balance on credit card first... Then re-evaluate your choice on getting a car and what to get.
Member
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Aug 21, 2016
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Calgary, AB
Why would you even carry your CC debt? this is the most expensive debt anyone can carry. If you have cash, payoff your debt first, all of it. Once you are done with that, you need to figure out what you need the car for, are you driving daily? is it for the kids? does your job require one?

If possible, try renting, it works great for me, but maybe yours is a different story.
RFD Effect Is Real
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Nov 24, 2013
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Agree that paying off credit card debt should take priority. It's an expensive liability.

Sounds to me like you need a loan no matter what, so might as well get the car loan which should carry a much smaller interest rate than the credit card balance. The only thing with the car loan is that you have to commit to paying it off over x number of years.
Last edited by lpin14 on Jul 1st, 2020 5:36 pm, edited 1 time in total.
Member
Oct 21, 2006
480 posts
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I would get a car loan at like 6-8% and put the 10k towards paying off the creditcard debt as other have suggested.
Deal Addict
Feb 28, 2006
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paying off that 10k credit card debt is the first thing you should do.
...
Deal Guru
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Feb 11, 2007
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Oakville
toyorav4me wrote: Why must have AWD?
Same reason they have large CC debt. They WANT things and spend the money, instead of saving and only spending on NEEDS.
Deal Addict
Jun 3, 2009
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Montreal
Pay off that 10k of credit card debt first and buy 5k used Camry and call it a day.
Deal Addict
Apr 22, 2013
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Markham
cn_habs wrote: Pay off that 10k of credit card debt first and buy 5k used Camry and call it a day.
That's the correct option 5 that sadly wasn't listed if the car needed to at least be larger.

OP:
CUV/SUVs especially with AWD cost more to buy, more to run, more to maintain, more everything and being saddled with credit card debt at such a high interest rate means perpetual debt if you fail to pay it down which at least 3 of your options fail to do. Even option 4 which seems to most reasonable won't be if you struggle to pay off your debts because your SUV is consuming too much of your cash on fuel, maintenance and repairs. You're supposed to take these vehicles on knowing this pitfall to your wallet, some sadly don't. You're effectively maintaining vehicles that are roughly $30K and above when they were new.

You say no subcompacts, but in this money situation...I'm afraid those are your fastest ticket to returning financially in the black where you have savings and actually can spend on whatever car you want. Of nearly all cars the subcompacts cost the least in all categories associated with car ownership. I saved for at least a decade to get the car I absolutely wanted, thankful it literally fit my budget too and was in the position to fully buy it off. Should I have been in a precarious position with my finances before getting my car, I was more than willing to go for a subcompact and it helps that I've driven all of them during that time and actually liked one of them. Heck subcompact isn't even the smallest least expensive option, the city cars are actually a thing you can take advantage today that weren't available in my time all of which were at most $13K but were as low as $9999 new. If it means having savings I'd drive a Nissan Micra.
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Jan 11, 2004
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cn_habs wrote: Pay off that 10k of credit card debt first and buy 5k used Camry and call it a day.
Pay off you debts, buy beige Toyota corolla.
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[OP]
Newbie
Jun 29, 2020
3 posts
Thanks guys (few those) for great advices.

I’m looking to AWD non-compact SUV’s, and those only because I like and I want + need those. Not a Micra for gods sake. Let’s not debate on wants and needs anymore.

Not to mention the term ‘large’ on the cc debt size is also subjective.

I’m now clear thanks to those who have chosen to provide suggestions rather than lessons. It’s option 4.

Any make/model suggestions? I’m looking at Santa Fe?
Deal Expert
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https://www.google.ca/amp/s/www.cbc.ca/amp/1.5073563

The Canada Hyundai, Kia class action lawsuit states that the defect is present in the following vehicles:

2011 through 2016 Hyundai Sonatas
2013 through 2018 Hyundai Santa Fe Sports
2011 through 2015 Hyundai Tucsons
2011 through 2016 Kia Optimas
2012 through 2016 Kia Sportages
[OP]
Newbie
Jun 29, 2020
3 posts
Thanks!

The article mentions model year 2013+, that should be 3rd generation. I think the one I should be looking at is the 2nd gen. Sure the reliability would probably be worse than a Toyota, but the mileage is better so is wear + considering a PPI.

Or, should I look at Venza’s (they’re hideous IMO)?

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