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Trading in gas guzzler may cost you
Friday May 2, 6:00 am ET

Terry Jackson

Like a lot of people, you may be watching the price at the pump soar and wondering whether it's time to dump your current, less-than-efficient SUV, truck or car.

It's tempting to simply haul your 15 miles-per-gallon vehicle down to the dealership and drive out in something that gets 30 mpg or more. But that may not be smart, at least from a financial point of view.

People thinking of going this route need to take several factors into account.

For starters, your gas guzzler is worth considerably less as a trade-in than it was even six months ago. By some estimates, the value of used sport utility vehicles has dropped more than 20 percent since January.

Continues at link.
 

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I had someone in yesterday that wanted to trade in their 2007 Matrix for a 2008 Yaris, solely due to fuel economy. As much as the dealership wanted to sell a new car, I explained to her that the average cost of gas a year in the Matrix was $1400, and the Yaris was $1100 (according the 2008 Canadian Energuide book).
If it cost her more than $1200 to switch cars, whe wouldn't be ahead of the game.
We didn't even continue from there, since she was probably $5000 upside down her Matrix.
 

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For those with a big truck, a better option might be to keep the truck and buy a motorcycle. :)

I saw something about that on the local news. It said the savings in gas was often enough to pay the motorcycle payment.
 

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Plenty of beater gas sippers out there if somebody wants a cheap ride to work. Your legs may stick to the vinyl in that old GEO Metro, but it won't cost you an arm and a leg.

I agree trading in a newly paid of SUV/Truck strictly for fuel economy is foolish. You won't save money and you will unhappy with your vehicle experience.

Considering how much time I spend in my car, I am glad I have a ride that I actually like being in.
 

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Did you happen to mention that the Cobalt XFE gets the same hwy mileage as a Yaris, and is larger and better looking?
And a Cobalt is also a better car in my opinion. GM needs better advertising to point these things out to the public. When was the last time you saw a Cobalt ad on tv?
 

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yup i'm going to buy a used motorcycle for most of my summer driving
yep, thatd be my plan. or an old 1000 dollar junker. or one of those eletric motorcyle type scooters (not like a dumb and dumber moped)
 

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I've talked to several people with PAID OFF trucks who wanted to trade in, strictly for fuel economy reasons. It's idiocy.
If the price of gas hits $5 per gallon in six months, the value of the truck they have might drop another 20%.

Now if they're driving a paid off truck that's worth maybe $800, then the extra 20% drop doesn't matter. But if the book value of the truck is $10,000 or better, waiting can be a serious problem.
 

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FINALLY!

My goodness ... everytime I turn around (or so it seems), someone else is asking: why do you drive that gas guzzler?

Well, first ... it is paid off ... as in, no car payments.

Second ... it gets better gas mileage than some brand new cars.

Third ... I like driving it ... I'm not about to drive something I don't like ever again.

Fourth ... insurance costs are less than something newer. (Heck, in some cases, I know people who pay more for insurance for one car than I do for all five of mine combined).

*sighs*



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Yeah, but if you're driving a guzzler and paying $400 a month payments, and you can trade it in for a sipper for the same, or less, payment and save 200 a month in gas bills it starts to make sense. Doesn't it? And you're driving a new car to boot. Most people where I live commute 80 to 150 miles RT a day to work so gas mileage is critical nowadays.
 

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I've owned motorcycles for almost 25 years now...my current Kawasaki gets 50 mpg and that looks pretty damn good right about now.
 

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Hehe............ I'm looking to trade in my decent fuel economy vehicle for a gas guzzler. Hell, you can get a real good deal on one.

I drive 400-500 miles a month, so the price of fuel really does not affect me. The gas guzzler will be much more flexible on the amount of stuff it can carry, and will be great for vacations/camping and such. Plus, it will be able to tow a boat, which we plan to get (good deals on those also).
 

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Since really all the driving I do for the most part is just going to/from work.......I'd actually move closer to work before I'd think about getting a different car.
 

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If the price of gas hits $5 per gallon in six months, the value of the truck they have might drop another 20%.
It's already $5.30 a US gallon here and I am not in a panic. Luckily I lease and can get a more fuel efficent car next time around. I don't really understand the panic to get rid of gas guzzlers, interest rates and rebates on small cars won't be favorable as demand is high. Keep it, maintain it, drive slower and enjoy ;).
 

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Plenty of beater gas sippers out there if somebody wants a cheap ride to work. Your legs may stick to the vinyl in that old GEO Metro, but it won't cost you an arm and a leg.
enough with the free credit report.com commerical...argh!


Seriously people panic so easily. At least sales people are making money.

I'm thinking of a newer diesel truck. They are practically giving them away.
6 months ago a Dodge with a Cummins, 6-speed, and 100k was still $25,000!
 

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It's already $5.30 a US gallon here and I am not in a panic. Luckily I lease and can get a more fuel efficent car next time around. I don't really understand the panic to get rid of gas guzzlers, interest rates and rebates on small cars won't be favorable as demand is high. Keep it, maintain it, drive slower and enjoy ;).
You lease, which means you probably drive less than 12,000 miles per year.

For someone that purchased instead of leasing, one of the reasons to buy a vehicle is if you plan to drive more than 12,000 miles a year. If you put 20,000 miles a year on a car, the difference between getting 15 mpg in a truck and 30 mpg in an econobox is 667 gallons of fuel. Plus the econobox is cheaper to insure.

The move to an econobox pays for itself pretty quickly under those conditions, especially if the price of gas keeps going up.
 
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