[Early_Adopter]

My 25 year old daughter, who recently got her driving license 4 months ago, works in Palo Alto, CA and is looking to buy her first car. She delegated the task of shortlisting and purchasing the car to me. I am shortly traveling to the US on business and would want to purchase her the car while I am there.

Here are some broad criteria:

• Budget - US$20k-$30k
• Used or New - Both are ok, but comfortable with the used coz, she is a new driver
• Payment - she is willing to give 10%-15% down payment in cash and the rest financed through Bank Loan
• Most of her travel will be in and around the Bay Area and once or twice a year she might want to use the car for her road trips.
• She wants a trouble free reliable car, as she doesn't want to get hassled by unforeseen repairs & breakdowns
• She is ok with Sedans or CSUVs
• She is a single and possibly would remain so for the next 2 to 3 years

As is normal for someone of her demographic buying her first car, I was tending towards the usual workhorses of Toyota Corolla or Honda Civic, which are not more than 2 or 3 years old and not driven more than 25k miles.

But then, I realised that the used car market in the US at the moment is going through the roof and the Corollas and Civics are priced over and above the new car prices.

Another reason for looking for a used car was, she didn't want to go through a long waiting period and she wants to finalise within the 3 or 4 weeks when I am there.

I am not personally very familiar with the new or used car markets in the US and my reading of the market scares me on dealing with the car dealerships given their notoriety.

I am looking from the experienced fellow members who are familiar with the specific micro market to guide me on the following:

1. Given the chip shortages and therefore non-availability of new cars, is it practicable to think that I can finalise the purchase of a new car within 3 or 4 weeks while I am visiting?
2. While we face long waiting periods for purchase of popular new cars in India, , there are several threads in this forum that list out the models of the cars that are readily available for immediate purchase. Is there a such a list that is available in the US especially in the Bay Area?
3. Which cars/models that you would recommend given her broad criteria?
4. Will leasing option shorten the entire cycle to less than 3 weeks?
5. Does the purchase of used car makes sense at all, given the unrealistic prices?

Whenever I hit upon a wall, TBHP always came to my rescue for making informed decisions. So, I request the fellow members to guide me on the above.

Thank you in advance

[Amrik Singh]

Originally Posted by Early_Adopter

My 25 year old daughter, who recently got her driving license 4 months ago, works in Palo Alto, CA and is looking to buy her first car. She delegated the task of shortlisting and purchasing the car to me. I am shortly traveling to the US on business and would want to purchase her the car

Since she would be the first time owner of the Car and (probably) not familiar with Car and breakdowns, the foremost thing should be the reliability.
I would suggest, ignore the market trend and walk down Toyota or Honda Certified Cars division. Select a Car and ride it home (if your financial transactions permit).
I bought a Certified Corolla for my daughter, first time driver / owner in 2012 and till date she has had no issues.
Bought a Certified RAV4 for other daughter few years back and she enjoys its ride.

[vj123]

Originally Posted by Early_Adopter

1. Given the chip shortages and therefore non-availability of new cars, is it practicable to think that I can finalise the purchase of a new car within 3 or 4 weeks while I am visiting?
2. While we face long waiting periods for purchase of popular new cars in India, , there are several threads in this forum that list out the models of the cars that are readily available for immediate purchase. Is there a such a list that is available in the US especially in the Bay Area?
3. Which cars/models that you would recommend given her broad criteria?
4. Will leasing option shorten the entire cycle to less than 3 weeks?
5. Does the purchase of used car makes sense at all, given the unrealistic prices?

1. Yes. Once you shortlist the vehicle, you can you ask your daughter to start contacting dealers.
2. Dealers have inventory (new and used) to choose from but they are might be limited.
3. To be conservative, you can look into the models from the "typical" brands - Mazda, Honda and Toyota.
4. I am not sure what you are referring.
5. A friend of mine paid 3k over sticker to get a brand new Civic in the West coast and waited for 4 weeks to get the color he wanted. Any vehicle (new or used) in dealer inventory is overpriced.

[theMAG]

Originally Posted by Early_Adopter

..US on business and would want to purchase her the car while I am there.

Here are some broad criteria:

..

This is not going to be easy, considering that your daughter is in one of the most expensive locations in the US - taxes, gas etc. , and the current car market scene here.

Since she does not have a family to tow along, you should consider a coupe as well, in addition to the usual compact car, to cast your net wider. I would go used, not so much for cost optimization, but quicker availability.


1. Subaru BRZ: I am seeing used BRZs listed for $21-25K on CarFax for a Palo Alto zip code. You do realize that this is a rebadged Toyota.

I am also seeing coupe Civics in this search, in the same price range.


2. Hybrids: While in the land of anti-gas, a Toyota Prius can never be ignored. I am seeing some early-mid year Priuses in the CarFax search for your stated price range; but these seem to have higher average miles than the BRZs mentioned earlier.

3. Small cars: Used Fiat 500s seem to be listing at even lower prices. I'm sure you're daughter will encounter tight parking spots in Palo Alto.

4. Compact cars: The Hyundai Elantra is an excellent and lower-priced alternative to the Camry/Accords. CarFax lists used Elantras around the $ 20K range.

[landcruiser123]

Originally Posted by Early_Adopter

Another reason for looking for a used car was, she didn't want to go through a long waiting period and she wants to finalise within the 3 or 4 weeks when I am there.

-Given the chip shortages and therefore non-availability of new cars, is it practicable to think that I can finalise the purchase of a new car within 3 or 4 weeks while I am visiting?

You can easily get a car within 3-4 weeks if you are flexible with model/variant/price. You do have an open playing field.

Which cars/models that you would recommend given her broad criteria?

Here's some of the models I love:
1. Compact(sedan or hatch): Mazda 3>Honda Civic>Toyota Corolla>Hyundai Elantra
2. Mid Size: Toyota Camry>Honda Accord>Mazda 6
3. Crossovers:(Used/new) Corolla cross, Honda HR-V, Honda CR-V, Mazda CX5, Toyota CH-R, Toyota RAV 4, Mazda CX-30, Mazda CX-50, Subaru Outback
4. Subcompact: (Used) Honda Fit
5. Hybrid: Camry>Corolla>Prius

Does the purchase of used car makes sense at all, given the unrealistic prices?

Depends... If you can get a value (value is relative) buy like this ILX, it'll be worth it. https://www.carfax.com/vehicle/19UDE2F39JA005758

Good luck!

Originally Posted by theMAG

1. Subaru BRZ: I am seeing used BRZs listed for $21-25K on CarFax for a Palo Alto zip code. You do realize that this is a rebadged Toyota.

Isn't the Toyota 86 and Scion FR-S the rebadged Subaru BRZ? Plus, I'm not really sure they are practical for a first-time car owner unless that is absolutely what she wants!!

3. Small cars: Used Fiat 500s seem to be listing at even lower prices. I'm sure you're daughter will encounter tight parking spots in Palo Alto.

Not sure 500s are the best choice for a first time car-owner. Fiat is plaqued with reliability issues - I've a friend who has had multiple warranty replacements(Main computer, water pump, wiper motor etc) in his Fiat 124 within 40k miles. (his toy though)

I'd rather place my bet on a 100,000 mile Camry than a brand new Fiat for reliable transportation.

[carthick1000]

Originally Posted by Early_Adopter

[*]Which cars/models that you would recommend given her broad criteria?

Would highly recommend the 11th gen Honda civic hatchback. Unlike Mazda 3, has an independent suspension at the rear and unlike corolla/mazda 3 hatches and sedans, have a usable coupe/liftback style hatchback. Also comes with wireless apple carplay and android auto. It gets adaptive cruise control and host of safety features even from base trim. Your daughter can keep it for a very long time to come. There is one available in sport trim in the lot here : https://automobiles.honda.com/tools/...trimname=Sport

In crossover segment, Honda HR-V or Mazda CX5 are good picks. However, because of the crossover buying frenzy, would not recommend this, as your daughter might have to shell out a lot more than it’s worth and probably also have to wait too long.

[mazda4life]

It’s not a buyers market for sure, but a cross over makes for an interesting proposition as the rear seats can be collapsed and used for lugging luggage if your daughter is interested in outdoor activities and the higher ground clearance will also come handy. One thing is for sure, you need to have patience and be slightly flexible in terms of trim and colors. Posting my CX-5 photo from a camping trip we went over the Labor Day weekend.

[JMaruru]

Originally Posted by landcruiser123

Here's some of the models I love:

Originally Posted by carthick1000

Would highly recommend the 11th gen Honda civic hatchback.

Originally Posted by mazda4life

a cross over makes for an interesting proposition

Originally Posted by theMAG

This is not going to be easy

Which would be a good YouTube channel to follow, for US car reviews?

[GutsyGibbon]

Originally Posted by JMaruru

Which would be a good YouTube channel to follow, for US car reviews?

I have been watching Doug DeMuro for years. He is quirky, but fun to watch.

[mazda4life]

Originally Posted by JMaruru

Which would be a good YouTube channel to follow, for US car reviews?

1. Still not comfortable with some of the content here , but i did watch some videos on this channel https://www.youtube.com/c/whatcar
2. Trusted our Team BHP more than anything else for suggestions and recommendations
3. Did some cursory search on edmunds.com and reddit
4. Best is to test drive with a prior appointment for first hand feel of the car

[carthick1000]

Originally Posted by JMaruru

Which would be a good YouTube channel to follow, for US car reviews?

1. Savage geese - My main go to channel. They make some high quality content with quite some technical depth and also sometimes interviews from industry product experts/vehicle engineers.

2. Sarah -n- Tuned : She is an ex US airforce veteran with background in Aerospace mechanics. So the reviews are detail oriented. But also has some awkward but quirky pauses / info strewn all through.

3. Alex on autos: The most detailed but very informative about specs, variants and practicality

4. Munro live: Exclusively for electric cars. They are an engineering and benchmarking company which started making detailed videos on EVs in recent years.

Also follow other international channels like The straight pipes (Canadian), Bjorn Nyland(Norwegian, all EVs).

[josejoseph]

Originally Posted by Early_Adopter

My 25 year old daughter, who recently got her driving license 4 months ago, works in Palo Alto, CA and is looking to buy her first car. She delegated the task of shortlisting and purchasing the car to me. I am shortly traveling to the US on business and would want to purchase her the car while I am there.

Do you know long is her commute? Since you mentioned office is in Palo Alto, I guess she uses highway 101 which is backed up during peak hours. With gas prices as all time high especially in California, I suggest a hybrid. If she's not a car crazy person, Prius is a good option. I also see lot of youngsters getting the Subaru XV Crosstrek. I don't know if it's economical to buy a new/used/CPO ones since car market is in short supply.

If she is financing, I suggest Digital Credit Union (DCU). Getting a pre-approval will give better interest rates than going thru' the dealer who may charge ridiculous interest rates.

[Early_Adopter]

Originally Posted by josejoseph

Do you know long is her commute?

She works remotely. So, she will be using the car primarily for grocery runs, her biweekly trips to SFO and occasional long road trips. Prius was not part of the original shortlist. Will add it now. Thanks a lot for the recommendation.

I don't know if it's economical to buy a new/used/CPO ones since car market is in short supply.

This is the biggest challenge. The best way out probably is to wait it out for an year or so till the prices stabilise. But, she thinks that she wants the car immediately. So, whether we buy a new car or a used one, we are going to pay a premium for making a car purchase now.

If she is financing, I suggest Digital Credit Union (DCU). Getting a pre-approval will give better interest rates than going thru' the dealer who may charge ridiculous interest rates.

Thanks for recommending DCU. We looked it up and it seems pretty promising.

[devil_klm]

Hi Guys, I have been to BMW autocross recently and it was exciting. Got a chance to experience some of their EVs and cars from M stable. Is there any other manufacturer that does similar events?

[Rajamass]

Originally Posted by Early_Adopter

My 25 year old daughter, who recently got her driving license 4 months ago, works in Palo Alto, CA and is looking to buy her first car. She delegated the task of shortlisting and purchasing the car to me. I am shortly traveling to the US on business and would want to purchase her the car while I am there.
.
.
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Thank you in advance

I moved to the US last year. The used car market here is ridiculous at the moment. Since your budget is 20-30kI will suggest to go for a new sedan.
Reliability is not something I am not bothered here. Germans usually don't offer the complex transmissions here. Japanese are quite popular here in the California. I am sure you will have new cars available with the dealers. Just finalize the car.

Koreans offer 3 year maintenance with 10 year warranty for power train (provided you don't transfer the ownership or else 5 years only). VW offers two year maintenance and 4 year warranty. I suggest her to check VW Jetta SE variant with ADAS features. I see lot of Jettas available in the bay area dealers like Sunnyvale VW or Stevens Creek VW.

Alternatively you can check certified pre-owned cars which do carry additional 2 warranty over the standard but slightly over priced than the used cars.

Regarding the finance options, does she has established credit score in the US? It will take 2 years for the credit history to build-up. Without good credit score, banks do not offer anything less than 25% APR. The credit unions do offer the cheapest rates around 4-5% for people wihout credit history. But I doubt if they can finance more than 20$K without credit history.