/ 8 January 2007

How economical are cheap cars really?

With just two weeks to go before the judging of the South African Guild of Motoring Journalists’ Car of the Year competition, Malcolm Kinsey has released the results of a parts price survey conducted on the eight finalists, aimed at helping the jurors evaluate the cars fairly.

Kinsey made use of the methodology he applies to his annual Kinsey report on car spares, whereby he selects parts in three categories — service, body and other parts — and prices a basket of commonly needed components in each.

Typical of these are items such as air and oil filters, shock absorbers, brake pads and discs, cam belts, water pumps, radiator caps, thermostats, water pumps, clutch and pressure plates, bumper skins, front windscreens, head- and taillight assemblies, bonnets, miscellaneous body panels, and doors.

Each category is added up to give a subtotal, and the grand total for each car is then given as a monetary value and, tellingly, as a percentage of the full retail price of the car.

To simplify things, we at the Mail & Guardian Online took each car’s placing in the two areas — cost of spares, and percentage of retail vehicle price — and added them together, with the lowest combined rating being the champ.

Winner

In the final analysis, we didn’t actually need to do that, because the surprise winner came out tops in both areas. The results of Kinsey’s research will come as an eye opener to anybody who believes that cars that don’t cripple your wallet to buy will be just as economical when it comes to splashing out for the parts you will need to keep them on the road.

In first place, both in terms of the cash outlay for spares and its percentage of the initial cost of the car, came the Alfa Romeo 159 2.2 JTS. Although it is, at R299 000, the most expensive of the eight cars, the total cost of Kinsey’s hypothetical parts basket for the Alfa was the lowest, at R31 021,93, just 10,38% of the car’s price. This gave the Alfa an unbeatable combined overall rating of just two points.

Compare this with the spares prices for the lowest-priced car in the group, the R132 900 Hyundai Accent 1.6 HS, and you get the message. The Korean budget car’s parts came to R46 235,81, or 34,79% of the price of the vehicle, making it the most expensive in terms of percentage and the fifth most dear in terms of hard cash. The Hyundai thus scored 13 points, which earned it sixth place overall according to our rating.

Second in terms of percentages and third in actual spares costs was the R287 000 Lexus IS 250 Auto, with a spares basket of R41 067,93, or 14,31% of the car’s value, giving it an M&G Online rating of five, and second place overall. The Lexus is the second-most-expensive car of the eight, which means that the two most expensive cars to buy are the cheapest to keep on the road.

Third place is shared by the Toyota Avensis 2,2 D-4D Exclusive and the Honda Civic 1.8 VXi sedan, both with seven M&G Online points. The Avensis is — surprise, surprise — at R262 700 the third most expensive of the finalists. The Toyota spares, at R44 810,60, earned the Japanese car third place in terms of percentages (17,06%) and fourth in terms of hard cash, for a rating of seven.

The Honda did well on actual spares costs, coming second with a parts basket of R40 271,55, but its relatively low purchase price of R195 900 loaded the scales against it in the percentages. Its 20,56% score placed it fifth in the percentage competition, and joint third in our own rating system.

Fifth and lower

Ford’s Focus ST took fifth place in our book, with an M&G Online rating of 10, from its R46 742,27 (19,96%) spares pricing. Sixth place went to the Hyundai Accent (13 points), while the Renault Clio 1,6 Dynamique five-door tied with the Opel Astra GTC 1.9 CDTi for last place, on 14 points.

We should point out that Kinsey’s research was conducted in November, and Hyundai, Opel, and Toyota all closed the door after the horse had bolted by reducing parts prices in December. Perhaps next year, chaps …

Spares prices aren’t the be all and end all of car ownership these days. Other factors include, obviously, reliability. The extent of the maintenance or service plan offered with the car, if any, takes on enormous importance when a new car is purchased. Come to think of it, perhaps the more expensive cars’ spares are cheaper because they usually come with some form of maintenance plan, so the distributors are their own biggest customers.

The margins on inexpensive cars are much lower, and one way of clawing back profit is obviously to price the spares that owners or their insurers will inevitably need to buy at higher levels.

SCORECARD

1. Alfa Romeo 159 2.2 JTS

Spares price: R31 021,93 (1st)

Spares %: 10,38 % (1st)

Rating: 2

2. Lexus IS 250

Spares price: R41 067,93 (3rd)

Spares %: 14,31% (2nd)

Rating: 5

3. Toyota Avensis

Spares price: R44 810,60 (4th)

Spares %: 17,06% (3rd)

Rating: 7

3. Honda Civic

Spares price: R40 271,55 (2nd)

Spares %: 20,56% (5th)

Rating: 7

5. Ford Focus ST

Spares price: R46 742,27 (6th)

Spares %: 19,96% (4th)

Rating: 10

6. Hyundai Accent

Spares price: R46 235,81 (5th)

Spares %: 34,79% (8th)

Rating: 13

7. Opel Astra GTC

Spares price: R54 099,77 (8th)

Spares %: 23,55% (6th)

Rating: 14

7. Renault Clio

Spares price: R48 640,57 (7th)

Spares %: 32,87% (7th)

Rating: 14