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Anon

I'm looking to buy a small fuel efficient car that will suit my modest requirements for a good long time.

For around $20,000 I can buy several brands of Japanese or Korean cars new, but I rather hanker for a Mercedes 160.

I have driven one, and love it - looks great, handles well, feels solid and you are sitting "high".

It's an import from Singapore, has all the AA ticks, 68,000 km, near new tyres.

My garage mechanic thinks it's in good shape, but any repairs will be specialised and cost a lot.
Should I go with a dream or settle for new - or perhaps choose 2nd hand Japanese, invest the balance and be able to replace in 4-5 years?

Catherine

From the "Ask Jack" archives - 14 December 2009

jbiddle

I can understand your reasons for wanting to purchase such a vehicle. The seating position alone makes them quite an attractive proposition.

However, from a technical perspective the risk factor is very high with any vehicle out of Singapore, the Mercedes 160 being no exception.

The problem many people are experiencing is centred mainly around the electrical wiring loom which can become extremely brittle due to the high humidity in Singapore. Once a problem surfaces in this area it is not uncommon to have the whole wiring loom replaced which is a major undertaking. Potential weaknesses are not easily picked up on a mechanical inspection either as the wiring loom is covered in a protective insulation.

If the car is being sold from a licensed trader then you will have some cover under the consumer guarantees act but that guarantee does not last forever.

Another issue with the Mercedes 160 has been the occasional internal transmission problem which can cost in excess of $5,000 to repair according to my most trusted sources within the industry.

It's really all about risk, you have to weight up the warm fuzzes with possible high mechanical expenses and a little bit of uncertainty.

Compare that with say a new Mazda2 (for a few extra dollars) which recently won the AA Small Car of the Year, with all the latest safety features, free servicing (3 years / 100,000km's whichever comes first) and three year unlimited kilometre mechanical warranty.

It's worth a test drive at the very least before you decide what to buy.

After driving the Mercedes I think you will be disappointed if you drop to a cheaper Japanese or Korean branded vehicle.