We are looking to downsize from our SUV to a hatchback. What do you recommend?

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We have a 2010 Buick Enclave, but after 14 years, we don’t need the big size anymore, especially because we live in downtown Toronto. We have always kept our vehicles from new for an average of 10 years and are looking to downsize to a small hatchback style. Can you recommend a vehicle that is going to give us reliability, safety and quality?

We have been waiting for interest rates to come down and we’re also looking for dealers to start offering deals. – Anthony

Petrina Gentile: A small hatchback – one of my favourite segments, but unfortunately there are fewer options out there as Canadians’ love affair with big SUVs keeps growing.

Mark Richardson: “Hatchback” is a dirty word in North America, like “station wagon” and “minivan.” Most drivers want SUVs for the capability they represent, but hatches are super-practical and they can be great fun to drive.

Gentile: And as we approach year-end, DesRosiers Automotive Consultants is anticipating the SUV share in 2024 will hit more than 60 per cent for the first time, while passenger cars will be reduced to less than 14 per cent of the market. It’s heartbreaking – I prefer a car or hatchback over an SUV. They’re more affordable, fuel-efficient and easier to drive and park in congested areas.

Richardson: You can still buy them, Petrina – it’s just that the choice is diminishing. But what choice is out there is still pretty good.

Gentile: That’s a fair point. But I miss the days when there were more affordable and smaller hatchback options like the Honda Fit, Nissan Micra, Mazda2 and Chevrolet Spark, to name a few.

Richardson: Anthony says he’s waiting for interest rates to come down, but that hasn’t really happened yet for car loans, despite the Bank of Canada rate dropping. Even so, some makers are offering good finance deals on some less popular models, including small cars, while others are holding steady at 7 or 8 per cent.

Gentile: That’s true. Let’s look at some options for Anthony. How about a new 2025 Honda Civic hatchback? Civics have a great track record for reliability, dependability and safety.

Richardson: That’s a nice little car – reliable and built in Ontario – but the financing rate is currently 7.29 per cent on its $33,000 cost before taxes. Compare that to Nissan, who will give him 5.99 per cent on a basic $30,000 Kicks, or Hyundai, who offers 5.29 per cent to finance a $29,000 Kona. That 2 per cent difference is a lot of money not to waste on paying a bank.

Gentile: The Civic is a more expensive vehicle with a higher financing rate, but you get what you pay for. And the Civic is a solid and reliable choice – personally, I think it’s a better option than the Kicks or Kona, for Anthony. And if he wants to sell it later, he’ll likely be able to sell if for a higher price than the others.

Richardson: Anthony should be aware of where his money’s going with manufacturer financing, but for all we know, he might have a personal line of credit for 5 per cent or whatever. As a vehicle, the Civic will be a good investment over 10 years, and it will be a better car in the city than his larger Enclave.

Gentile: That’s for sure. It’ll be easier to drive and park, and definitely cheaper to maintain.

Richardson: It’s what he’s asking for. But why not make an assumption that Anthony has a garage or driveway and can charge an electric car at home? If he can, this is a good time to buy one. Prices have come down because EV sales are sluggish, and the $5,000 federal rebate is only assured until March 31. Plus, it’s now only offered for vehicles built in a country that has a free-trade agreement with Canada, and who knows what’s going to happen with American-built cars.

Gentile: EVs are too expensive and besides, Anthony isn’t asking for an electric vehicle. He’s asking for a small hatchback.

Richardson: And there are small hatchbacks that are electric vehicles. Don’t be so dismissive – Anthony hasn’t said he doesn’t want an electric car. He should know that if he buys one, his maintenance costs will probably be significantly lower. There are no oil changes, and regenerative braking saves on pads and discs. Over 10 years of ownership, it will likely cost him less to own if he can get a deal on the purchase price today, and I’m not even including the price of home electricity compared to gasoline.

Gentile: I’ll indulge you.. What would you suggest?

Richardson: I’d recommend he consider either a Chevrolet Bolt – if he can find a new one, since it’s on hold waiting for the next-generation – or a Hyundai Kona EV. They’re both small, reliable and good value in the long run. But if he can’t charge at home, they’ll be more trouble than they’re worth.

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Gentile: Exactly, and plenty of people downtown have to park on the street. Let’s stick to small gas-powered cars and skip the Bolt and Kona EV.

Richardson: Then I’d suggest the conventionally powered Kona. It’s small, it’s practical and it’s good value. Right now, Anthony can get a basic Kona for about $29,000 plus tax, with a finance rate of 5.29 per cent. For what it’s worth, that’s $15,000 less than the electric Kona, after cashing in the federal rebate.

Gentile: Now, you’re talking. I like the Kona – it was redesigned for 2024, inside and outside. It’s nice-looking and spacious. Plus, it comes well-equipped with plenty of standard safety and convenience technology.

Richardson: The main thing is that it’s been around for a while now, so it’s reliable. If Anthony likes the Kona, I’d also suggest he looks at the Nissan Kicks that I mentioned earlier. Again, it’s small, reliable, has a practical use of space and it’s good value for money. Is there anything else you think he should consider? How about the $33,000 Buick Encore GX, a size down from the Enclave? GM’s financing offers 4.99 per cent.

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Gentile: There’s nothing wrong with the Encore – it’s a nice package, but the other vehicles will hold their value better. And it’s a bit pricy compared to some competitors in that space.

Richardson: It’s the same as the Civic, but if you think that’s too costly, what do you think of the Chevrolet Trax that starts at $27,000 plus tax? Same 4.99 per cent financing.

Gentile: The Trax is Chevy’s cheapest SUV. It’s well equipped for the price, but it doesn’t come with all-wheel drive and it’s not as reliable as some competitors. And again, it’s not a hatchback. I think there are better options for Anthony.

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Richardson: He doesn’t want all-wheel drive, and the Trax was redesigned for 2024. He might think it too large, though.

Gentile: It’s definitely better than the last generation, but it’s too large. Anthony wants a hatchback – I think the Toyota Corolla hatchback is a better option than the Trax. It’s reliable, affordable, spacious and fuel-efficient.

Richardson: We’ve recommended the Corolla hatch to a number of other readers, because it does seem to do everything well. It’s less costly than the Honda Civic hatchback, too. My biggest issue with it, especially for Anthony, is that Toyotas are selling so well these days that there are no deals going – the least expensive SE edition is about $27,000 plus tax, but financing will cost 6.89 per cent.

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Gentile: That’s still more affordable than most new vehicles. The average price of a new car in Canada is around $66,000. By that measure, even with the high financing rate it’s still a steal.

Richardson: It’s hardly a steal – it’s $30,000 for something that cost considerably less just a few years ago. It’s the bank that’s taking the extra profit for financing straight out of buyers’ pockets. I’ll agree that it’s good value in the current climate, though, because Toyotas hold their prices very well.

Gentile: Everything cost less a few years ago. We had more options back then, too. But I digress.

Richardson: I just hate giving my money to middle-men banks, instead of to the maker of the product I’m buying. But I digress too. What would be your shortlist for Anthony?

Gentile: Not to sound like a broken record, but Anthony wants a hatchback – let’s give him what he wants. My top pick is a Civic hatchback because it’s fuel efficient, affordable and reliable and a bit more engaging to drive than a Corolla hatchback. And you?

Richardson: I’d look first at the Hyundai Kona. I’d also seriously consider an electric vehicle for downtown Toronto, but only if Anthony is able to charge it at home.

What car should you buy? Write to Mark and Petrina at globedrive@globeandmail.com and use ‘What car’ as part of your subject line. Emails with different subject lines may not be answered.

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