Doctor torn between frugal and fancy

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Hello: I am a 37-year-old physician who simply can't make a decision about a car.

I like a smart-looking car and my friends tell me I deserve a luxury brand. I am, however, very frugal.

I tend to lease vehicles but also hate having to make this decision every three years or so. My fantasy is to buy an affordable luxury brand once the lease is up in three to four years.

My alter ego tells me to buy a small, no-frills, fuel-efficient vehicle to get me from A to B.

I do a lot of driving and do require a car that will handle well in the snow, as taking a "snow day" is not an option.

At the luxury end, I am considering the Mercedes-Benz GLK, BMW X3, Cadillac CTS wagon. At the cheaper end, I am considering a Subaru Impreza five-door.

I don't want to go into the 50K range and I hate high interest rates.

Sam

Cato: Sam, you surely deserve to drive something consistent with your stature as a physician on the road dishing out health care, refusing to take a "snow day," committed to an Albert Schweitzer-like ethic of hard work, sacrifice and commitment.

Vaughan: So Cato, it has to be the Impreza for Sam - and he can then donate $20,000 to start an eponymous foundation.

The 20Gs, of course, representing roughly the difference between a $30,320 Impreza Limited five-door hatch (freight and automatic transmission included) and the alternatives he mentioned.

Cato: Sam, the 20-large probably won't help you win the Nobel Peace Prize, as Schweitzer did for 1952. But you never know. If President Obama can win the Peace Prize on the promise of accomplishment yet to come, perhaps you have a shot once your foundation is up and running, handing out the money you saved by purchasing the Impreza.

Vaughan: Ease up. All Dr. Sam wants is a car recommendation, so let's throw Sam's other suggestions into the mix. Two are from Germany, as was the legendary Dr. Schweitzer, an Alsatian himself.

Cato: Before we move on to Benz, Bimmer and Caddy, let's make the case for the Impreza. The Limited version is a top-of-the line four-door hatchback with all the upscale bells and whistles.

Vaughan: And it is a Top Safety Pick of the Insurance Institute for Highway Safety.

Cato: So it's very safe. At the end of the lease, odds are Sam will have a car that has held its value well - best in its class, says Automotive Lease Guide, at 45 per cent after four years. The research suggests his Subaru will be reliable, that it won't break or cost a lot to maintain.

Vaughan: And I think Sam will find the standard four-wheel-drive system, combined with the low centre of gravity design of the "boxer" engine, makes for a car that handles very well, and not just in the snow.

Cato: Now as for the Mercedes he mentions, I am not unhappy with any particular part of the GLK, though the styling does not exactly grab me. But I want him to look at the X3 and a Cadillac, just not the Caddy that Sam mentions. I think he might want to test drive the new SRX crossover, rather than the CTS wagon.

A couple of reasons: The least-expensive CTS wagon stickers at $48,470. That seems a stretch for a frugal character like Sam. The base SRX, which I think is a really great-looking, well-executed crossover wagon, lists for $43,095, or more than $5,000 less, freight included.

Vaughan: Right on the SRX, but you're wrong about the styling of the GLK - it looks great and is the unboring German SUV.

The BMW X3 just received a facelift, but I can't tell the difference. However, they dropped the price to $39,800, which balloons to $41,895 with the obligatory freight charge.

Cato: Cadillac had a strong showing in J.D. Power's three-year Vehicle Dependability Study, so I'd expect the SRX to be pretty reliable.

Vaughan: But BMW has some of the best residual values among all premium brands - better than Cadillac by quite a bit, which matters for someone who leases and then wants to buy, like Sam.

Cato: Except, of course, GM of Canada does not lease any Cadillacs. The finance arm of the company, GMAC, is classified as a bank in the United States, so because banks here can't lease cars, GMAC cannot lease in Canada.

Vaughan: Sam, you're going to have to buy this Caddy if you like it. But that's where you want to end up anyway. Cato: The good news is that GM of Canada has up to $5,500 in incentive money on the 2010 SRX, so it's a real deal.

Vaughan: There is no cash from BMW Canada on the X3 right now.

Cato: But Subaru Canada has up to $1,000 in sweeteners on the Impreza, if you qualify.

Vaughan: Sounds like the Impreza if Dr. Sam is feeling Schweitzer-like. Otherwise the Caddy.

Jeremy Cato and Michael Vaughan are co-hosts of Car/Business, which appears Fridays at 8 p.m. on Business News Network and Saturdays at 2 p.m. on CTV.

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Send your questions for Michael Vaughan and Jeremy Cato to: what-car@globeandmail.com