12 smart car-buys for your income tax refund

High retained value and documented dependability make these 12 prudent choices

Mark Toljagic
Published: April 5, 2017, 3:50 PM
Updated: December 21, 2017, 6:11 PM

Tax refund time

If you’re one of those fortunate tax-payers about to get a refund, we have some four-wheeled suggestions on how to spend it wisely. By Mark Toljagic ▲

Happy days

It’s income tax season again, a time of foreboding for those of us who have to pay our dues to the government – especially if you’re self-employed (say, like a writer). For others, it’s a happier time when Ottawa returns funds to those long-suffering taxpayers who have paid too much tax in automatic deductions during the year. If you’re part of that latter group – and two-thirds of Canadians are – you may be wondering what to do with your windfall. We have some suggestions. ▲

Smart new-car buys

Rather than blow it on a barely memorable holiday getting sunburned on a Caribbean beach, you may want to put the cash towards a new vehicle. With fiscal responsibility in mind, we present 12 smart new-car buys for 2017, culled from the recommendations by Canadian Black Book, ALG Canada and J.D. Power. These models benefit from higher retained value and documented dependability that make ownership prudent and painless. Your accountant would approve. ▲

Smart Subcompact Buy: Honda Fit

There are plenty of small city-sized models on the market these days, but Honda’s innovative Fit continues to deliver Tardis-like space efficiency (thank you, Doctor Who) unmatched by rivals. The secret is the five-door hatchback’s fuel tank positioned under the front seat. That, combined with the compact rear suspension, enables the rear seats to fold down especially low, creating a versatile cargo hold that is remarkably large for its class. It doesn’t hurt that the Fit’s sporty suspension and direct-injected 1.5-L DOHC four-cylinder engine provide a spirited drive any commuter would appreciate. Great things really do come in small packages. ▲

Smart Compact Buy: Subaru Impreza

The Subaru Impreza sets itself apart with its horizontally opposed boxer engine and standard symmetrical all-wheel-drive system, available in both sedan and hatchback compact variants. The Impreza is all new for 2017, utilizing the rigid Subaru Global Platform, which delivers collision integrity and reduced noise, vibration and harshness. Powering the new models is an updated version of the FA20 2.0-L direct-injection boxer engine. The flat-four lies low in the engine bay, which reduces the centre of gravity to aid handling and stability. Subaru has always marched to the beat of a different drummer, and the strategy has paid off handsomely: its models enjoy exemplary resale value. ▲

Smart Mid-size Buy: Toyota Camry

North America’s favourite sedan has cornered the market with its sterling reliability, spacey accommodations and cheap-to-keep operating costs. Small wonder so many taxi operators have adopted the Camry as their fleet standard. Keen to keep its winning sedan competitive, Toyota has updated the Camry extensively, including significant improvements to the body structure and suspension, resulting in better handling without sacrificing the Camry’s pillowy ride. Regardless of being powered by four-cylinder, six-cylinder or four-cylinder Hybrid powerplants, the Camry delivers the goods. J.D. Power praised it for having the lowest problem incident rate of any model in its 2017 Dependability Study. ▲

Smart Sporty Car Buy: Dodge Challenger

Channeling the 1970-74 model years of the Dodge Challenger, the re-imagined muscle car arrived to immense fanfare in 2008 and got snapped up by nostalgic buyers and performance fans. Built on the shortened wheelbase of the LC chassis, itself based on the rear-drive Chrysler 300 platform, the Challenger made good use of some Mercedes-Benz components. With engines ranging from mild (the 305-hp Pentastar V-6) to wild (the outrageous 6.2-L supercharged Hemi V-8 Hellcat that churns out 707 hp), it can be fitted with enough muscle to defend its aggressive stance. It’s a time machine that appeals to drivers of all ages – evidenced by the fact it retains its value like no other sports coupe. ▲

Smart Luxury Car Buy: Audi A7

The Audi A7 Sportback is an executive-class mid-size luxury car closely related to the A6 sedan, but with a “fastback” profile that incorporates a handy hatchback instead of a backlite, as well as four frameless windows. It’s the product of a German auto trend that has found fans on this side of the Atlantic. Unfortunately, it offers rear bucket seats that are rich in legroom but short of headroom – a hazard of fashion. In other ways, however, the A7 is pure Audi with the same quattro all-wheel drive system, eight-speed automatic transmission and 333-hp, 3.0-L supercharged V-6 engine tucked under the fetching bodywork. ▲

Smart Minivan Buy: Toyota Sienna

Canada is very much a minivan nation, and although Fiat Chrysler has dominated the market with its inexpensive and cheerful Dodge Grand Caravan, it is Toyota’s Sienna that delivers the two-pronged benefits of durability and low depreciation. The present model has received a number of structural tweaks and a more muscular V-6 engine that puts out a welcome 296 hp to go along with its more disciplined suspension and communicative steering. The Sienna is the only minivan around that offers optional all-wheel-drive – a boon to consumers living in the snowbelt. Not to mention the cabin offers more space than some downtown studio condo units. ▲

Smart Compact SUV Buy: Honda CR-V

A perennial favourite in the vastly popular cute-ute segment, Honda didn’t really need to overhaul its bestselling CR-V for 2017, but it did anyway. The new model is genuinely handsome, maybe for the first time, as well as quicker with a capable new 190-hp, 1.5-L turbocharged four-cylinder engine. And it’s even more accommodating inside – a surprise, given that the previous CR-V was already stretching the definition of a compact sport-ute. Add to that the usual Honda virtues of a dynamic chassis, compliant ride and minimal body motions. The responsive steering is another treat for drivers who don’t wish to pilot a weighty lug of a crossover. Honda is finding its groove again. ▲

Smart Mid-size SUV Buy: Toyota Highlander

If the CR-V is an overachieving compact SUV, then Toyota’s Highlander is its equivalent in the mid-size category. Sized right, it offers three-row seating for up to eight occupants, which means it can easily supplant the old family van and provide all-weather versatility with its all-wheel drive. New for 2017 is an updated 3.5-L V-6 engine that’s good for 295 hp, and the Hybrid model is now even more efficient and refined. Safety is a big draw in this segment, so the Toyota Safety Sense suite of features includes adaptive cruise control, forward-collision warning with pedestrian detection and automated emergency braking, lane-departure alert, lane assist and automatic high-beam lamps. ▲

Smart Large SUV Buy: Toyota Sequoia

Analysis shows the world’s second-largest automaker knows something about reliability – and that pays dividends when it comes to retaining value at trade-in time. Big sport utilities are notorious for depreciating badly after only a few years, but Toyota’s Sequoia bucks the trend. It can haul with the best of them, while providing a plush and comfortable cabin for up to eight people. It offers generous off-road and towing capabilities, thanks to the Tundra’s truck bones underneath. On the downside, the Sequoia hasn’t been updated in nine years and it’s lacking some of the high-tech gear that buyers have come to expect, such as a lane minder and collision mitigation. That’s said to be rectified in the updated 2018 models. s ▲

Smart Compact Luxury SUV Buy: Mercedes-Benz GLC

The GLC-Class joined the Mercedes-Benz lineup as the successor to the GLK compact SUV. The old GLK channeled Mercedes’ classic Gelandewagen with its blocky design and upright windshield, while the elegantly styled GLC doesn’t owe a single line to that school of design. Power comes from the same turbocharged four-cylinder engine found in the C300; indeed, much of the GLC’s hardware migrated directly from the C-Series sedan. The cabin offers the same posh furnishings and features, but beware of MB-Tex, the synthetic leather upholstery (it’s also a little short on space compared to some rivals). The high-performance AMG GLC 43 offers a very potent V-6 engine for the impatient crowd. ▲

Smart Mid-size Luxury SUV Buy: Lexus RX

The Lexus RX 350/450h luxury sport utility is immensely popular thanks to its impeccable cabin, refined ride, advanced safety features and ease of ownership. Unlike the pricy German iron, the RX is bred to stay out of service bays and provide trouble-free motoring long after the warranty expires (Lexus has topped the J.D. Power Dependability Study most years). Redesigned in 2016, the RX features a more energetic 295-hp, 3.5-L V-6 engine working through a silky eight-speed automatic transmission with all-wheel-drive standard. The F Sport has go-faster styling cues and massive 20-inch alloys, along with a massaged suspension. The 450h hybrid model continues to deliver good acceleration combined with exceptional fuel efficiency. Oh, by the way: it’s built in Canada. ▲

Smart Full-size Luxury SUV Buy: Volvo XC90

Good to see Volvo back in the hunt with its all-new XC90 full-size luxury ute that, as before, pumps up Volvo’s biggest wagon for sport-utility duty. It’s a proper three-row crossover, which benefits from Scandinavian design that’s both spare and elegant, with an emphasis on rich textures inside. Surprisingly, the XC90 makes do with a 316-hp four-cylinder engine that’s both supercharged (to aid take-off) and turbocharged (to augment power at speed). There’s also a plug-in hybrid model that generates 400 horsepower. True to the brand, the XC90 bristles with all the latest safety technology and driving aids, leaving nothing to pine for. This Volvo is boldly different from the usual luxury fare and deserves a close look. ▲

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