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Thanks for your reply. I also have an option to purchase a nz new Toyota 1.8Gx Corolla for $12200. I know it will use more gas but when you consider that I do about 20,000k a year and 2/3 of the trip is at 110kmph , with the about 20-30 mins crawling in traffic. would I be best to go to this size engine or step back to a 1.5 motor it would blow my budget but long term would it be a better option because I will hold on to it for a good while.

It has 90k 2010 on the clock. also I can get a Hyundai I30 2010 also with 90k on the clock for 10k 1.6 all auto. Better on gas/ durabilty ? Hyundai/Toyota?

Personally, I'd sacrifice a year or two for a car with lower kms. You should be able to get a 2008/9 Corolla with 50-60,000km for this price.
Like the Corolla, the i30 is a well regarded model and should last well. However, the Corolla probably pips it to the post and is likely to be slightly more economical.
You won't find a great deal of difference between the cost of running a 1.5 litre car and a 1.8 litre, so buy the one that best suits your needs.
I like the idea of the Corolla but think the kms are a little high on this particular example.