YOUNG BUCKS - Sub $20K First Car Buys

YOUNG BUCKS

Gen Y - the baby boomers' babies. The oldest have hit the big three-O, and the youngest are just reaching their teens. Discerning, demanding and immersed in the digital world, they are possibly the most challenging group of new car buyers.

So what pushes this group's automotive buttons? While old fogey boomers and Gen-Xers focus on 20th Century stuff like brand reputation and engineering integrity, Y-fronts are all about iPod connectivity and FaceTube.

And smack in the middle of this influential demographic bubble are final year uni students. Most 21, many 22, they're the tertiary graduates of 2011. Ready to enter the full-time workforce, thanks to increased spending power (and often mum and dad) they are also ready to slip behind the wheel of their first new car.

To get the latest on what's hot and what's not at the budget end of the new car market we put a trio of about-to-be uni grads behind the wheel of three entry-level models.

Our testers are Mel and Robert (22) and 21-year-old Sarah. And our test loop took in a variety of urban conditions; from slow stop-start to more open sections, undulating hills, tight corners and broader bends.

And while this test focuses on how the specific cars chosen performed, it also aims to answer the broader question of what category of car makes best sense for this buyer group.

We've split the under-$20,000 new car market into three sub-segments; each car tested representative of a key, price-driven category.

Every dollar counts: $11-14K
Like the heading says, every dollar counts in this incredibly price-sensitive slice of the market.

Suzuki's Alto, at just $11,790, currently holds the budget price crown, with Proton's S16 $200 dearer at $11,990. Others to sneak under the $14K cap include the evergreen (and VFACTs Light segment-leading) Hyundai Getz, the brand-new Nissan's Micra and the Proton Savvy.

And to represent this group we've picked one of Holden's most recent arrivals, the Barina Spark. A diminutive, 1.2-litre five-door hatch with angular, edgy styling and a generous standard equipment list, it enters the fray at $12,490.

This little car was created in a suitably connected, interweb kind of way. General Motors displayed three design concept cars at the 2007 New York motor show and encouraged people to go online and vote for the one they'd most like to see produced. And 1.9 million individual voters did just that, putting the Spark concept (called Chevrolet Beat -- the other two were dubbed Groove and Trax) at the top of the list. And true to its word, GM will introduce the car to more than 150 markets around the world.

It might be small and keenly priced but the Spark is big on active and passive safety technology. It features electronic stability and traction control systems to help keep the vehicle under control in extreme situations, as well as anti-lock brakes and six airbags (driver and front passenger, side and curtain).

And it sips the juice, consuming just 5.6L/100km on the Australian Design Rule (ADR) combined cycle. Perhaps the only hiccup is the car is only available with a manual transmission.

Despite an overall length of just under 3.6 metres the Spark provides 170 litres of cargo space with the seats up, growing to 568 litres with rear seats folded. And included on the standard equipment list are alloy wheels, sports body kit, air-conditioning, front electric windows, heated, power adjustable exterior mirrors, remote central locking and a four-speaker audio system featuring an "ice blue LED backlighting theme", single CD player and MP3 input.

Going hand-in-hand with the sharp exterior design is a 'motorcycle inspired' instrument cluster housing an analogue style speedometer next to digital readouts for revs and fuel level, plus a multi-function trip computer reporting on a range of parameters from distance to empty to outside temperature.

Carsales Network's Gen Y verdict:
The Spark received unanimous praise for its comfortable, supportive seats and spacious interior -- impressive especially considering its compact external dimensions.

Ease of use also got the thumbs up from Sarah; specifically the "simple and clear radio controls" and "smooth (manual) gearbox." However Mel wasn't keen on the (adjustable) steering wheel that was "still a bit low, even at its highest point." And Robert thought the instrument cluster was "alright", but would prefer more "traditional gauges."

In fact, motorcycle inspired or not, the dash layout copped a lot of stick. On top of Robert's thumbs down, Mel thought the cluster was "too close to the driver and difficult to see" and Sarah thought it was "tacky." Strike one for design difference.

Comments on the exterior design ranged from boxy, to chunky, even ugly. For Robert the front of the car was reminiscent of a bird's beak, and he couldn't warm to the styling "from front, side or rear." Strike two?

But on the flip-side, the small nose "allowed for easier parking"

Other pluses: Mel liked the stereo (with iPod/USB port) as well as the hidden exterior handles on the rear doors, and the interior design (aside from the dash) was well liked by all.

On the road the Spark's steering feel and response received high praise. Sarah noted it was "just right" and liked the "tight turning circle." Mel also thought the steering was "good" and felt secure behind the wheel, while Robert thought it was "perfect."

Weighing in well under a tonne, there's not a lot of metal for the Spark's 1.2-litre engine to move, and the "smooth transmission" and "good performance" scored well. This contrasts with the fact Robert found himself selecting first in the Spark to conquer steep hills the other two cars on test were able to scale in higher gears.

All three of our testers thought the Barina's brakes (discs front, drums rear) were smooth and effective. And despite its compact dimensions ride comfort received a triple tick of approval.

Summary: Comfortable, surprisingly spacious and well equipped, the Barina Spark delivers good value. Our testers didn't fall for its looks, but enjoyed the drive, and loved the price.

The heart of the matter: $14 - $17K
More than a dozen separate models contest the middle cluster of the under-$20K segment. From the Holden Spark's big-brother Barina at $14,790, through the likes of the Honda Jazz, Hyundai i20, Kia Rio, as well as the hugely popular Mazda 2, Mitsubishi's compact Colt, a range of Protons from Malaysia, the neat Suzuki Swift, Toyota's Yaris and our representative model -- the Volkswagen Polo Trendline.

Making its global debut in March 2010, this all-new fifth generation Polo has been on sale locally since May.

It wears VW's distinctive new family face. Indeed, for some critics the clean, almost minimalist lines of this little bit wider, little bit taller (than last generation) Polo are almost too similar to its larger Golf stablemate.

Although the 1.4-litre, three-door Trendline is the entry point to the Polo range it sits close to the top of this price band; the five-speed manual weighing in at $16,690. A two-pedal version with seven-speed DSG (Direct Shift Gearbox) adds $2500.

Measuring just over four metres in length, Volkswagen claims it as the first vehicle in its class to achieve a 5-Star standard in new, more stringent independent crash testing by EuroNCAP and its local equivalent ANCAP.

The standard equipment list is generous, including remote central-locking, air-conditioning, electric windows and an MP3 compatible six-speaker stereo (the same premium system found in the Golf and Passat).

And even in its entry-level model Volkswagen does everything it can to help you avoid a crash, with antilock brakes, anti-slip regulation (ASR), electronic differential lock (EDL) and electronic stability program (ESP) all standard. And if all else fails, crash protection includes standard front, side and curtain airbags.

Carsales Network's Gen Y verdict:
Our testers liked the Volkswagen's refinement, comfort and space (for a three-door). Mel noted, "the noise levels were good", with very little intrusion into the cabin. And Sarah wasn't alone in giving a big tick to the "comfortable and supportive" seats.

VW's designers would be pleased with comments from our testers noting the "clear, simple and easy to use" instruments and controls. In particular, the stereo captured positive feedback. Robert thought its LCD display was "great", Sarah agreeing it was a "nice, fun to use feature with good base", and Mel marking its station and music track readouts as "excellent ... a feature that would grab me."

The only snag was Sarah believed the lack of a specific MP3/USB port was "sad" (although it's worth noting the Polo does provide a jack point for a direct-line feed to external players). And that's a significant factor for Gen Ys, born with an iPod in their hands.

Comments on the overall design ranged from "appealing" through "nice shape and lines" to "pleasing, smooth and quite streamlined." Sarah also appreciated design touches like the VW roundel on the hatch door doubling as a release button and handle. So they liked it from the outside, but while Robert noted the exterior styling as "best of the three" he thought the "internals overall were a little plain."

Once underway Mel thought the Polo felt "secure, stable and easy to control, with good steering", while Sarah appreciated the "responsive handling" and "nice tight turning circle."

On the downside, the brakes lost points for their overly sensitive initial bite. While effective in slowing the car, they were unanimously criticised for being "jerky" on application, especially at lower speeds.

And while engine performance was fine, the schizophrenic nature of our test car's Direct Shift Gearbox (DSG) brought less than glowing feedback. Geared for maximum economy in drive mode the gearbox isn't as quick to respond off the mark as a conventional auto. Robert thought it "terrible", Mel "unpredictable" and Sarah "disappointing."

In contrast, the DSG's sport mode seems to go too far the other way, holding on to each gear for too long (in urban conditions anyway) and unsettling the car's composure with frequent, early and rapid down-changes.

The manual shift Tiptronic function wasn't considered a saviour around town either. As Mel said: "If you want to change gear yourself buy a manual car."

Summary: While our team liked the Polo's quality, sophisticated design and easy to use controls, its jerky brakes and DSG transmission caused frustration.

At the top end: $17-20K
This premium batch of budget contenders boasts nine players including Honda's City, Hyundai's Elantra sedan and i30 hatch, Kia's Soul and Cerato, the Nissan Tiida, Peugeot's 207, the Tiny Smart Pulse and Suzuki's Jimny Sierry SUV.

And it's the Kia Soul's boxy-but-funky look that marked its card as the premium player in our three-car line-up.

Kia's corporate tagline is 'The Power to Surprise' and the Soul's upright, geometric design certainly caused a stir when it launched here in early 2009 launched here in early 2009 -- distinctively 'different' and hard to pigeonhole.

Yet in other parts of the world Nissan's aptly named Cube (not sold here officially, but keep your eyes peeled and you'll occasionally spot a grey market import) had been breaking ground in the shoebox-on-wheels department since 1998. And this year Toyota added the similarly styled Rukus to its local line-up. But with a price starting in the high twenties it's out of contention here.

According to Kia "no two Souls are the same", which points to the seemingly endless combinations of paint colour, trim, wheels and body elements available to personalise it. If you fancy racing stripes or dragon graphics there's an option box to tick. Your car can even be made up with dark 'eyeliner' under its headlights.

Although recommended retail price for the base Soul is $20,990, at the time of writing it's offered at $19,990 driveaway, to just scrape under our $20K ceiling. The Soul's 1.6-litre, four cylinder petrol engine is the most powerful of the group, yet its fuel consumption is still an entirely respectable 7.0L/100km.

At 4.1 metres long and over 1.6 metres high it's no monster, but definitely a step up in size from the Polo, and particularly the Spark. And the standard equipment list includes air-conditioning, a multi-function trip computer, remote keyless entry and a six-speaker CD stereo with auxiliary input for USB/iPod.

On the active safety front there's a swag of acronyms representing electronic stability and traction control (ESC with TCS) and anti-lock brakes (ABS). And in terms of passenger protection should a crash be unavoidable there are six airbags (driver and front passenger, side and curtain) and active front headrests to limit head movement and minimise injury in a collision.

Carsales Network's Gen Y verdict:
No surprise the Soul's individual design polarised opinion in the test group. Robert found it "hard to get over the exterior aesthetic, especially at the back -- like a four-wheel drive but without the benefits."

Although Mel agreed the Kia looked "quite boxy" she thought the bulging wheelarches added a "stylish" look, and that the interior was "simple but sophisticated -- roomy and classy."

While Sarah also liked the "lovely" interior, she wasn't thrilled by the exterior styling, calling it out as the car's "biggest flaw."

In a practical sense the group responded well to the car's "large doors", "easy access", and "good seating position." Robert thought the adjustable armrest on the driver's seat was a nice touch, while Sarah and Mel liked the generous legroom, although both thought the Soul was more family than Gen-Y-size, and bigger than they would actually need.

There was also unanimous approval for the "clear and simple" instruments and controls, particularly the stereo and air-conditioning.

On the road the car picked up bouquets for its comfortable ride, "excellent" steering, "good turning circle", "low noise levels" and overall feeling of stability and security. The Kia's "smooth performance" was also a winner.

Sarah liked the "simplicity" of driving this car, noting "everything was easy and smooth." And while "very steep hills caused some difficulty" she enjoyed the power of the "responsive" engine. Worth noting Robert also enjoyed the 1.6-litre four cylinder's "rich" sound.

The "firm and smooth" brakes found favour. But it wasn't such great news for the four-speed automatic transmission's 'Sportsmatic' manual shift mode.

Mel noted, "The manual shift wasn't good -- unclear when the car had successfully changed up or down" while Robert thought it was "kinda pointless."

Another black mark went against rear vision, with the over-the-shoulder view particularly copping some flack. But on a final positive Mel thought Kia's five-year, unlimited kilometre warranty was "amazing."

Summary: While the Soul's exterior design didn't please everybody, its ease of driving definitely did. It's neat, smooth, user-friendly, comfortable and great to drive.

The 'First' prize goes to...
Despite reservations about its looks, the Kia Soul's combination of great driving dynamics, ease of use and overall quality made it a favourite with these Gen Ys.

The only snag is dollars -- despite a driveaway offer at the time of writing bringing the entry model under $20,000. Without a substantial helping hand from parents or family, this is certainly beyond a part-time working uni student's budget. Indeed, our testers were sure the $17-20K band would even be a bridge too far for the majority of first full-time workers as well.

The Volkswagen Polo offers a more affordable Euro option, and our testers liked its quality, classy design and smooth driving dynamics; although the brakes' initial bite and our test car's direct shift gearbox didn't win many friends.

An entry price above $16K is still steep for this group, and the Polo's more conservative personality didn't seem to get these 20-something heartbeats racing. Love it or hate it, the Kia Soul came off as more interesting.

Which puts Holden's Barina Spark on the top step of the podium, representing a price band that really counts for our trio of potential first time new car buyers.

Enjoyable to drive, economical to run and loaded with an impressive array of standard features and safety technology, the winning five-door Spark offers plenty of bang for modest young bucks.

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