Behind the Wheel 28 highway 20-20 VISION The car market may see a shift to models whose lowER OMVs mean that they cost $20,000 or less from the factory. We investigate why Text Leow Ju-Len | Art Direction Johnson Lim | Photos Roy Lim When it comes to buying a car these days, $20,000 has become something of a magic figure. That’s entirely due to the plethora of car financing curbs and tax increases that were announced on Budget Day this year, many of which hover around that number. How much you can borrow when you buy a car, and how much you have to pay in Additional Registration Fees (ARF), are both dependant on the Open Market Value (OMV) of the car now — that is, the price of the car that the dealer paid the factory for it, plus freight charges and the cost of insuring it while in transit to Singapore. If the OMV exceeds $20,000, then there are meaningful differences to both factors, but perhaps the most salient point is that buyers may only borrow up to half of a car’s purchase price at that level. Below that, the loan amount is up to 60 per cent. That makes $20,000 something of a threshold in the market. “There will be renewed interest in cars with OMVs of under $20,000,” said Steffen Schwarz, the managing director of Volkswagen Group Singapore, in the immediate wake of the Budget Day measures. Though it remains to be seen just how the new rules will fully impact the car market, what’s clear is that limiting your choice of car to those with an OMV of $20,000 or less doesn’t have to mean buying something bland or slow. The four cars here show how there’s still a great deal of variety in the market at that pricing level, enough to ensure that there is something out there for anyone. Suzuki’s Swift Sport, for instance, offers a revvy engine and a sophisticated chassis, while the Nissan Note has a supercharged engine coupled with funky styling and a practical hatchback body. Meanwhile, Volkswagen’s Beetle is the latest iteration of a motoring icon and embodies far more style than you’d expect from something aimed at people on a budget. Finally, the Peugeot 208 just falls foul of the $20,000 mark — our test car’s OMV was $20,575, yet we’ve included it not just because its turbodiesel engine provides a bit of variety, but because if the strengthening of the Singapore dollar against the Euro continues for the year, it should place the 208 within the magic mark of $20,000. Its importer AutoFrance is also working on adjusting its spec level to bring its OMV down. Here’s hoping. AT-A-GLANCE: NEW RULES FOR CAR BUYERS Car loans Before  Borrow up to 100% of the car’s price  Pay it back over 10 years Now  Borrow up to 60% of a car’s price if its OMV doesn’t exceed $20,000  Borrow up to 50% of a car’s price if its OMV is more than $20,000  Pay it back over 5 years Why “The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles.” — Monetary Authority of Singapore Upfront taxes Before  Additional Registration Fee (ARF) of 100% OMV Now  ARF of 100% for the first $20,000 of OMV, 140% for the next $30,000, and 180% for the value above $50,000 Why “The intent of the tiered ARF structure is to achieve a more progressive vehicle tax system” — Land Transport Authority Note worthy A compact hatch that’s punchy, almost sporty and economical — and it ain’t German! here’s a Nissan to take note of Nissan Note 1.2 DIG-S (A) $104,800 with COE ENGINE 1,198cc 16V, in-line 4 WARRANTY 3 years / 100,000km MAX POWER 98bhp at 5,600rpm CONTACT Tan Chong Motors (6452 1112) MAX TORQUE 140Nm at 4,400rpm GEARBOX CVT TOP SPEED 167km/h 0-100 KM/H 12.0 seconds FUEL ECONOMY 5.1L/100km CO2 121g/km Verdict The Note is a noteworthy entrant into the compact hatch arena and proves affordable needn’t mean dull Behind the Wheel overcome this, too. If you’re in a hurry, there’s a Sport button on the gearshifter which makes the Note gather speed considerably quicker, too. It’s terribly frugal as well — the small engine has direct-injection and a start/stop function, while there’s also an Eco button to tone down airconditioning and throttle response. The Eco mode also coaches you on green driving via a light-bar on top of the speedo. The end result is that the car easily does 20km per litre of fuel on the highway and will top 15km/L in traffic too. That kindness to the environment (121g/km of CO2) nets it a $10,000 rebate under the CEVS scheme. In fact, there really isn't much that this car can be criticised for. Yes, the interior is a little plasticky and the sweeping A-pilllars do obstruct vision, but there’s plentiful space for all passengers and it’s impressively quiet for a small car. It’s also got plenty of features such as keyless entry and start, an infotainment system with navigation plus many nooks in which to stash your stuff. Perhaps most importantly, cars like the Note prove that affordable new car ownership needn’t be a dream in this day and age. The 60 per cent loan level means coming up with $41,920 as a downpayment for a Note. And while this is not exactly chump change, it's enough to buy a hatch that’s practical, funky-looking, fun to drive and yet frugal, and all with the reassurance of Japanese reliability. 31 with Renault, and while this might raise eyebrows, it's further testament to Nissan's reputation as one of the more daring Japanese carmakers. Its GTR and 370Z sports models aside, machines like the allelectric Leaf and also the Note show how it is a left-field thinker. From the outside, it looks like a wanna-be-tough sort of hatch — the black wheels and bodykit (which are included in the price) give it that sort of pygmy bulldog air. In almost anything else Japanese, segment-wise, it’d be all bluster and no filler. But the special thing about the Note is its 1.2-litre supercharged engine — it’s the only Japanese compact to feature forced-induction, which gives the car 100bhp and 140Nm, which, combined with its low mass, make it a pretty fun drive. The gearbox is a continuously-variable transmission, but it avoids the common CVT foible of feeling like there’s no traction — the engine’s healthy torque helps DOWNS Butch looks might not appeal to all highway Saloons may rule the Singapore market but if you ask us, the compact hatchback is the most logical choice for city dwellers. Driving a hatchback through the urban sprawl is easy; plus if you ever need to move something big, the rear seats usually fold. The newest kid on that block — aside from the other cars you see here — is the Nissan Note. But it’s pretty special for a few reasons. Nissan is in a corporate alliance UPS Perky yet eco-friendly engine, lots of features Gallic Bred highway 32 Behind the Wheel This FRENCH-MADE turbodiesel morsel throws a spanner into the all-petrol lineup. Cheerful it is, but is it cheap enough? Instead of looking ahead, the 208 has dipped into the past to define itself, since it’s touted to embody the spirit of the 205, the looks of the 206 and the practicality of the 207. But does this mean it is necessarily a product for the present? It certainly looks the part of an edgy, urban warrior runabout, with its fancy boomerangshaped tail-lights and floating front grille. It may not have the cutesy looks of the MINI or Citroen’s smaller cars, but paired to a torquey turbodiesel 1.6-litre engine, it’s no less cheerful to drive. Local distributor AutoFrance has given the 208 some big car bling in a small car. For example, one is greeted by an interior decked out in tastefully-executed diamond quilted leather and Alcantara upon opening the doors. There’s decent space inside in spite of the relatively short 2538mm wheelbase, and it’s noticeably larger on the inside than the 207. Like all new offerings, the 208 comes equipped with a 7-inch colour touch-screen display, which serves as a conduit to the car’s multimedia and vehicle configuration settings. The Peugeot also features an elevated instrument cluster that is intended to improve driver ergonomics, but we found that at certain steering wheel Peugeot 208 1.6 e-HDi $107,800 with COE ENGINE 1,560cc turbo-diesel 16V in-line four MAX POWER 92bhp at 4,000rpm MAX TORQUE 230Nm at 1,750rpm GEARBOX Six-speed Electronic Gear Control TOP SPEED 183km/h 0-100 KM/H 11.8 seconds FUEL ECONOMY 3.8km/L WARRANTY 3 years / 100,000km CONTACT AutoFrance (6376 2288) UPS Cheerful A-B city commuter that is easy to manoeuvre and torquey enough to hold its own DOWNS Transmission doesn’t offer slick and seamless shifts like a dual-clutch or even a conventional auto Verdict Turbodiesel torque gives it surprising poke in traffic and it's a credible eco-conscious city warrior too. positions, the top rim obstructed part of the instruments. Like all modern eco-friendly cars, the 208 also features an auto start/stop system, which helps to brings its consumption down to a scarcely-believable 26.3km per litre. That frugality doesn’t compromise on performance though. Once in its stride, the pint-sized Pug makes light work of overtaking manoeuvres, its hearty torque output and low kerb weight making for a potent combination. Pushed hard, the 208 gives the impression of tottering on its toes, with abrupt changes in direction resulting in rather alarming body-roll, but this is part of what makes the 208 feel so frisky. Driving it cleanly requires a shift in thinking, as the 208’s EGC (Electronic Gear Control) transmission needs some finesse to operate smoothly. Keeping your foot down as you would with a dual-clutch or a torque converter leads to great discomfort for all on-board. Instead, jerk-free progress is done with a slight lift between paddle shifts (the transmission’s reactions in ‘A’ was not at all enjoyable, so we left it in ‘Manual’ for the most part). It’s just one more example of how the Peugeot is not a car for the uninvolved. Suzuki Swift Sport 1.6 (M) $101,900 with COE TailorED Swift The Suzuki swift Sport offers as much entertainment as a popstar, without the high-maintenance We don’t know what Taylor Swift would be like on a date, but given her habit of singing about her long list of exboyfriends, we can’t imagine it to be all that fun. Or maybe those guys have been doing it wrong. Perhaps what they need when they go on a date with Ms Swift is a car that can bring some joy into the sad pop star’s life. Enter the Suzuki Swift Sport then. Aside from sharing a name with an American songstress, this little wonder from Suzuki also offers up a huge amount of entertainment. For a start, you don’t need to be a multi-millionaire like Ms Swift to own one of these. Okay, granted it still costs one-tenth of a million dollars, but the Swift Sport is still a bargain when put beside its peers in Singapore's car market. The minimum deposit for one is around $40,000 in cash, which is still a princely sum, but at least the Suzuki won’t cost you much to run on a daily basis, averaging about 15.4km/L at the petrol pumps. Equally miserly though, but not in a good way, is the boot, which at 210 litres might only be big enough to store Taylor’s handbag and a couple of her CDs. But the measly boot space will be quickly forgotten, once you take the car out on a drive. The Swift Sport offers some genuine driver fun with its sharp and precise steering, as well as its nimbleness through corners. Sling ENGINE 1,586cc 16V in-line four CONTACT Champion Motors (6631 1118) MAX POWER 134bhp at 6,900rpm UPS Massively entertaining to drive, pretty impressive fuel economy MAX TORQUE 160Nm at 4,400rpm GEARBOX six-speed manual TOP SPEED 195km/h 0-100 KM/H 8.7 seconds FUEL ECONOMY 6.5L/100km WARRANTY 5 years / unlimited mileage DOWNS Not all that fast, tiny boot Verdict For the price, few cars offer up as much fun and excitement as this. Arguably the best entertainment you could get for the money (automotivelyspeaking). the car down a winding country road and marvel at how it hangs on gamely at the limit, with the revvy 1.6-litre engine — which produces 134bhp and 160Nm of torque — singing to the redline. And sing it will, given that the engine needs to be worked a fair bit to reach really fast speeds. You also get extra bonus points with the girlies for its six-speed manual transmission (because manuals are manly), but should you not want to bother with that, the Swift Sport is also available in automatic form as well. Ultimately, what the Suzuki Swift Sport offers is a breath of fresh air with its down-to-earth goodness — and the knowledge that even if you might never be able to have fun with one Swift (the popstar), you can have it all with another (the car). iconic makeover The basic VW Beetle may not have wings, but no one could ever accuse it of being short on style Volkswagen Beetle 1.2 $124,300 with COE ENGINE 1,197cc, turbo in-line four CONTACT Volkswagen Group Singapore (6474 8288) 0-100KM/H 10.9 seconds FUEL ECONOMY 5.9L/100km WARRANTY 3 years or 100,000km As long as you don’t need transport for a family, the Beetle is a happy way to part with your money, offering more smiles per litre than anything else here keyless access and engine starting. Still, the car’s interior does offer a touch of style, with colour coding for the dashboard and steering wheel to lift the tone in a retro way that avoids the kitsch of its predecessor and its flower holder. There’s also been a huge rise in interior quality, which helps the Beetle feel like the sort of car that would impress the neighbours, if that happens to be one of your priorities. Be sure to show off the top-hinged glovebox too, a retro nod to the dashboard of the legendary original. In more than one way, the Beetle 1.2 cuts a mighty fine dash. Behind the Wheel UPS MAX POWER 105bhp at 5,000rpm Unmistakably stylish, efficient yet punchy MAX TORQUE engine, cheerful 175Nm at 1,550 – demeanour 4,100rpm DOWNS GEARBOX Basic by usual VW 7 Speed DSG equipment level standards, poor visibility TOP SPEED 180km/h Verdict 35 fun-seeking singelton or newlywed, then the Beetle is unlikely to cramp your lifestyle. An issue with the car’s shape is that it affects visibility: seeing out of the Beetle can be a challenge when you have to check a blind spot. While the engine is a tiny 1.2-litre unit, it does come with a quick-shifting sevenspeed transmission and a turbocharger. On the move, it feels far more spirited than its 0 to 100km/h time of 10.9 seconds suggests, and it seldom leaves you with the urge to tromp down hard on the accelerator pedal. There’s a well-planted and grownup feel to the way it handles, too. Next to the Beetle, for instance, the Peugeot feels positively bouncy. It’s perhaps in the area of equipment that you might feel let down by the Beetle. By VW standards it’s relatively spartan, lacking frills like satellite navigation, the ability to steer itself into parking spots or highway If any car can plausibly refute the idea that there’s nothing worth driving if it has an OMV of less than $20,000, the Beetle 1.2 is it. For your money, you get the latest incarnation of a genuine motoring icon, a car that has endured for decades as a symbol of fun and style. Face the Beetle square on, and it’s impossible not to be bowled over by the cheery demeanour of its styling. So if you’re going to spend six figures on a car, you might as well do it with a smile. This is also the only car featured here that has just two doors (three if you count the tailgate). This fact has its own connotations: it’s a car as much for fun as for transportation. Mind you, the coupe-like styling of this current Beetle (as opposed to the circular lines of the previous model) have resulted in a far more practical car than before. The rear seats are now habitable by adults, and bootspace has grown tremendously. It’s not going to do family car duties the same way the other three cars on review could, of course, but if you're a