Good time to buy a gas-hogging SUV?

[Ming]

Good time to buy a gas-hogging SUV?
By Peter Valdes-Dapena, CNN/Money staff writer

Sure it'll cost you more in gas. But with dealer discounts and incentives, you'll save much more.

NEW YORK (CNN/Money) - Gas prices have gone north of the $2 mark, and could head higher still. So, naturally, it's time for Americans to end their love affair with massive, gas-guzzling sport/utility vehicles, right?

Not so fast. If you were thinking of buying a big SUV -- and don't care what environmentalists think of you -- there's not much reason to change your mind now.

Yes, the recent run-up in gas prices will hit your pocketbook. But at the same time that gas is rising, so are incentives on the biggest SUVs. In fact, the savings at the dealership should more than make up for the extra fuel costs, at least over the relatively short term.

Take the GMC Yukon XL, which gets about 15 miles to the gallon in combined city and highway driving, according to the Environmental Protection agency.

Driving 15,000 miles a year at $1.60 a gallon (the average as recently as February) would have meant annual fuel costs of about $1,600.

At $2 a gallon, the annual fuel cost would be $2,000, an added expense of $400.

But these days, General Motors is offering $5,000 in cash incentives on the Yukon XL, $2,000 more than it was offering in February.

If the equation were that simple, GM's generosity would cover your extra fuel costs for about five years.

There are some complications to keep in mind, however.

First, remember that rebates do come at a cost. Every dollar of that rebate acts like a pebble tied to the resale value of your car. The bigger the rebate, the faster the vehicle's resale value sinks.

But cars that have poor resale value for other reasons are most affected by rebates, said James Bell, director of sales for IntelliChoice, a company that tracks long-term ownership costs. The good news for SUV buyers is that those vehicles tend to hold their value well, said Bell. The GMC Yukon XL, for example, is rated among the best in its class for retained value.

"Your best move is to look at how particular vehicles are doing in the market," said Bell. You'll get the most out of a rebate with a vehicle that depreciates slowly and that you keep for a long time, he said.

If you want to use that rebate to offset your fuel costs, warns Bell, avoid pouring it back into expensive options, a common mistake.

Smart optioning can also save you money on those gasoline bills, he added. Passing on the 4-wheel-drive option or the bigger engine can save you money in your monthly payment and at the fuel pump.

Full Article Here

[pupp1]

Yes i do believe this is true. However there is the problem of the gas prices.
Who knows when the price is actually going to level off or if it will?
They are hitting everyone so hard which is causing a lot of little companies to close there doors forever, even some bigger companies that have been around for 10 to 20 years. At least where I live. I read in a news article that people were running out of gas because they were not filling there tanks. People are being stranded at the side of the road. In this article it also said that people are trading in there suvs for smaller cars. I am almost ready to buy a cavalier myself just to be able to afford the drive to work every day.

[pupp1]

http://tulsa.cox.net/cci/portal/_pagr/130/...rticleId=227461
If you want details click on this.

[powervette]

I see that LPG is completely unpopular in the U.S,if the gas prices don't stop to increase,I am sure it will become popular in 2-3 years.

By the way, average American salary is 10 times higher than for ex.
in central Europe so what do you worry about guys?

[SUPERBADD75]

i'm tired of people whining about gas prices, personally. the gas light in my car comes on when there are a couple of gallons left, which usually means i add 10 gallons each time i fill up. premium is now about $2.09 , whereas it was around $1.80 3 months ago. that's $.30 difference. it only costs me $3.oo more to fill my tank each time. granted, i don't have an SUV with a 30 gallon tank, but i also don't have the cash to buy one. when you spend the money on a vehicle like that, generally you have the funds to drive it too. if not, consider something else. the higher gas prices don't bother me much, nor do they bother many of my friends or family. hell, we could be in Europe and pay a LOT more for it. adjusted for inflation, gas prices are a nickel, that's a mere $.05 more a gallon than they were 50 years ago. gas is cheaper than milk!!! get real, it's not that bad. if it hits $5.oo a gallon, then you can start crying. meanwhile, enjoy it, we still have the cheapest gas in the world.

[tgagneguam]

Some perspective:

Gas prices through time, adjusted for inflation:

1950 - $1.91
1960 - $1.79
1970 - $1.59
1980 - $2.59*
1990 - $1.51
2001 - $1.66


Based on 2001 (dated, I know) gas prices:

Highest:
Hong Kong - $5.38
London - $5.05 (when I went in November 2003, it still wasn't cheap!)
Oslo (Norway) - $4.54

Lowest:
Caracas (Venezuela) - $0.40
Jakarta (Indonesia) - $0.45
Kuwait City (Kuwait) - $0.76

So perhaps we're still ranked somewhere closer to the middle of nations in terms of what we pay for our gasoline?

[pupp1]

Originally posted by SUPERBADD75@May 22 2004, 05:50 PM
i'm tired of people whining about gas prices, personally. the gas light in my car comes on when there are a couple of gallons left, which usually means i add 10 gallons each time i fill up. premium is now about $2.09 , whereas it was around $1.80 3 months ago. that's $.30 difference. it only costs me $3.oo more to fill my tank each time. granted, i don't have an SUV with a 30 gallon tank, but i also don't have the cash to buy one. when you spend the money on a vehicle like that, generally you have the funds to drive it too. if not, consider something else. the higher gas prices don't bother me much, nor do they bother many of my friends or family. hell, we could be in Europe and pay a LOT more for it. adjusted for inflation, gas prices are a nickel, that's a mere $.05 more a gallon than they were 50 years ago. gas is cheaper than milk!!! get real, it's not that bad. if it hits $5.oo a gallon, then you can start crying. meanwhile, enjoy it, we still have the cheapest gas in the world.

First off I would like to say good for you and yours. But the people that are affected the most by rising gas prices are the people who have to drive 100+ miles a day to get back and forth from work each day. Such as I. You do the math.
I think you will be a little more understanding. Gas prices need to go down plain and simple,anyone else like rising gas prices, I think not. :argue:

[Mikkoo]

I'd love to have $2.00 per gallon gas here in Finland,
but the reality is it's $4.40 and we don't complain.
Just accept the fact that gas prices might stay
high in the US and move on. Make some changes
in your driving patterns, and if it's possible switch
to a more fuel efficient vehicle.

[Mikkoo]

Quote: First off I would like to say good for you and yours. But the people that are affected the most by rising gas prices are the people who have to drive 100+ miles a day to get back and forth from work each day. Such as I. You do the math.
I think you will be a little more understanding. Gas prices need to go down plain and simple,anyone else like rising gas prices, I think not.


First off you have not said why you need to travel such distances in Oklahoma.
It can't be that housing is so expensive it forces you to drive 100+ miles per
day. Gas prices might stay around $2.00 per gallon. You might need to just
except that. Nobody likes rising gas prices, but wishing they'll go down might
not be real at this time. Take a deep breath, relax and quite complaining.

[SUPERBADD75]

First off I would like to say good for you and yours. But the people that are affected the most by rising gas prices are the people who have to drive 100+ miles a day to get back and forth from work each day. Such as I. You do the math.
I think you will be a little more understanding. Gas prices need to go down plain and simple,anyone else like rising gas prices, I think not.

my advice to you is buy a Prius or Civic hybrid. what are you going to do if gas prices stay where they are, or even increase? complaining about it isn't going to get you anywhere, and the fact is that oil is not a renewable resource. i'm curious what you drive, but would not be shocked if it were a Tahoe, or a Silverado. SUVs are not that useful. if you need fuel efficiency, and room to haul people or cargo, a nice minivan may be the answer for you. otherwise, pay 2 bucks a gallon for gas, and don't complain. gas prices could very well stay where they are now, and never drop again. to be honest, it wouldn't hurt my feelings at all if it did. we won't get the oil back once it's all gone. higher fuel prices could make people think twice about their gas-hog purchases the next time around. i got rid of my SUV for 30mpg, and have no problems with it at all.

[awalbert88]

Originally posted by Mikkoo@May 22 2004, 02:01 PM
Quote: First off I would like to say good for you and yours. But the people that are affected the most by rising gas prices are the people who have to drive 100+ miles a day to get back and forth from work each day. Such as I. You do the math.
I think you will be a little more understanding. Gas prices need to go down plain and simple,anyone else like rising gas prices, I think not.


First off you have not said why you need to travel such distances in Oklahoma.
It can't be that housing is so expensive it forces you to drive 100+ miles per
day. Gas prices might stay around $2.00 per gallon. You might need to just
except that. Nobody likes rising gas prices, but wishing they'll go down might
not be real at this time. Take a deep breath, relax and quite complaining.

This is the problem. The vast majority of people who live outside the US or Canada don't understand our driving habbits, because they live in an area that has had thousands of years to develop. When real cities and towns began in North America, the horse was already a widely adopted means of transportation, so things were a little bit more spread out (you didn't have to walk everywhere). Cities were generally spaced rather far apart, because there was so much land available. It's not always practical to live where you work in this country, because we are much more spread out as a nation. Construction jobs especially often involved a lengthy commute, because people aren't going to keep building things in the same location, so jobs shift around a lot. Also, once you've built your own house or purchased it, you don't want to have to transplant your family again when your job changes or you get moved to a different location unless you absolutely have to. We still have the cheapest gas prices in the world, but we also drive more than anyone else in the world. I have two jobs, one is about 3 miles (5km) away, the other is roughly 16 miles (23km) away. So I drive about 38-40 miles a day just for work. I use up a tank of gas ($40 for about 18gal) in 7-9 days, depending on what other driving I do. You shouldn't tell us to quit complaining, because that's our right as human beings. The better thing to say is that we should keep some perspective. Unfortunately, that's not very practical for how much we drive. I will have to borrow money in order to buy another tank of gas before I get paid in two weeks (both paychecks yesterday are already nearly gone from paying bills).

Anybody who thinks that it's a good idea to buy a big SUV right now because it costs less at the moment is a fool. Gas isn't going back to $1.50/gal. We might see it below $2 again this year, but not by much. This isn't a short-term price hike, but I don't think very many people appreciate that fact. I didn't want to believe it when prices first started to flirt with $1.90 for premium, but I've come to accept that we're just going to have to pay more for gas from now on. And whatever the specific economic factors are that caused this current price hike, I'm not expecting them to change drastically any time soon.

My plan right now is to buy an Escape Hybrid in January when they finally hit the non-'green state' dealerships (Ford is producing 4000 this year to go to dealerships in 'green' states -- CA, NY, NJ, DC, etc) and 14,000 next year for general distribution.

[johnd89]

yup, hybrid is the way to go...
too bad they aren't more available, because I hate both suv's and minivans.
I would liked to see more hybrid midsize and large sedans...
I want a car the size of a buick lesabre with the fuel efficiency of a honda civic!!

[Mikkoo]

[quote] This is the problem. The vast majority of people who live outside the US or Canada don't understand our driving habbits, because they live in an area that has had thousands of years to develop. When real cities and towns began in North America, the horse was already a widely adopted means of transportation, so things were a little bit more spread out (you didn't have to walk everywhere). Cities were generally spaced rather far apart, because there was so much land available. It's not always practical to live where you work in this country,

I do understand the driving habits of North Americans, as I am an ex-patriate
living in Scandinavia. The real problem here is that some North Americans are
resisting a change in driving habits. Driving less, buying more fuel effecient
vehicles involve lifestyle changes. I doubt that some are willing to do that.
Make the changes and see how much easier things will be for you budget,
and attitude.

[Ming]

Originally posted by SUPERBADD75@May 22 2004, 02:35 PM
my advice to you is buy a Prius or Civic hybrid. what are you going to do if gas prices stay where they are, or even increase?

Why not an Aveo? He'll save 10,000 dollars of the price of a pricey one-year wait, MSRP if your're lucky Prius or Civic hybrid, AND get good fuel economy.

Ah, "must choose Toyohonda....must not deviate!" :P

The Civic Hybrid is MSRP: $19,650 - $20,800, and the Prius is over 20K. Beside the recent news that Hybrid drivers aren't getting nearly the advertised fuel economy, the 10,000 difference with an Aveo is going to take a LOOONG time to make up with fuel economy savings.

This debate reminds me of people who complain about ATM fees, but don't even look to see how much the federal government is draining from their paycheck every month.

If the issue is saving gas AND saving money in general, a car like the Aveo hatch makes a lot of sense. To look solely at the price of gas and ignore that a Civic hybrid costs twice as much is silly. Might as well just get a plain old Civic and put your extra money in the bank, or and Echo - if you must go the Toyohonda route.

No, this "Prius is the best" argument is for environmentalist greenies, and techno geeks who want to show off (but strangely were absent when GM had the EV1 out). It just doesn't make sense otherwise.

Personally, I think a lot of SUV buyers are buying IMAGE, not sense, and would be better off in more fuel efficient minivans and cars like the Malibu Maxx -- but then again the Hybrid buyers are buying an image, too, not common sense.

http://www.gminsidenews.com/forum/index.ph...?showtopic=5541

[pupp1]

I give up. I think i will lay down and never get up again. For the vehicle I drive is job related.I have to haul stuff all the time,like 750 air compressors,sand trailers,different variations of metal structures.There is only two cures for the problem i have.One is lower gas prices.the other is to quit my job that i have been at for 5 years and find another one.maybe something close....yeah thats what ill do.... NOT.......and by the way i get about 14 mpg on the highway if i am lucky.and futhermore the majority of driving that i do is for work,other than that i stay at home most of the time.Driving habbits are not the issue for me,unless you count driving for work.