4 neighbors bought new cars to save on gas. Is this a trend!

[Handbag Lady]

Something to factor in is that GM had an offer last week on 0% financing for up to 6 years. I was looking at a Solstice and would have saved $6k in finance fees alone vs. what I could get at the credit union.

If someone knows they will want a new car in two years or so, maybe this savings was a factor?

Me? I'm still driving my 13-year old Pontiac Grand Am. I just couldn't wrap my brain around a car payment again. I hate having car payments.

 

[mom2aredhead]

Where I live, everyone still has Yukons and Suburbans. They are still everywhere on the roads. Not much has changed. As posters here said, everyone already owns these huge expensive cars and they would lose much more money trading them in. So the SUV still rules here. I don't care what the media says - here everyone loves SUVs and won't consider a vehicle much smaller - except maybe a large trendy "crossover" which all still look like SUVs to me!

I'm guilty. I have an SUV which I financed at 0% but I still have a payment. Since the value of SUV's have gone down so much (because they're so much less desireable) I'd be upside down too much, so it's just not worth it. (Although down the road I'll be getting a smaller vehicle once my son is out of a car seat...those suckers take up so much room!)
My husband has a full size 4 door pickup truck that gets terrible gas mileage which is JUST ABOUT paid for - about $2000 to go, but it's an '05 and worth much more than that. He still uses it for some "side job" things, so we need a truck. I really don't want to invest in a 3rd car right now since I'm currently unemployed after being LAID OFF from the company that manufacturers the gas guzzlers we're driving. We're hanging on to our savings in case I'm out of work for a while, so a 3rd car just doesn't make sense right now.

We needed a new one anyway so we got a Camry Hybrid and DH is loving the mpg he gets! We still have the old car (we planned on donating it after we used the full tank of gas it has) I've been driving it instead of my van which gets only 17, the Oldsmobile gets 26 but has 194,000 miles on it!

The Camry Hybrid is probably going to be my next car too. The majority of the ones sold in the US are being manufactured in Kentucky.

Ford Fusions are manufactured in Mexico.

Can you tell I'm a little bitter???

 

[ILoveDisney&Cruising]

Oopps....sorry about the title...I meant for car to be cars!

You can edit the title - just go to:

"edit"
then "go advanced"

 

[MrMarv]

It is definitely a trend, but you have to be really precise when you run the numbers, which everyone on this thread is doing very intelligently!!

We'v been addicted to imports here in Los Angeles and all of California for well over twenty years; either the Accord, Corolla or Camry has been the best-selling car in the state every year since the early nineties, but there are still plenty of gas-gulping SUVs on the roads out here, with no end in sight.

I purchased a brand new Hyundai Elantra in April of 2007, and with unleaded gas at $4.45/gallon right now, I'm really glad I did!

 

[carj]

We are not going to trade ours in. My husband has a Toyota Corolla which gets great gas mileage. I have a Saturn Relay which has to be the worst vehicle ever made. The gas mileage is not great, about 18-20 mpg. I drive during the school year for work but during the summer, just for fun.

I might consider a crossover or small SUV when it is time to get a new vehicle but I am not going to get a tiny car. I had a tiny car when my children were small and we couldn't ever invite the kids friends to do anything because there was nowhere to put them. I want something that has enough space for 6-7.

Right now, I am planning to drive my van until the wheels fall off, however given its' track record so far, that might be this evening!

There is no public transportation option here.

 

[kajcwman]

This is going to be strictly from an economic standpoint and not environmental responsibility so I will say that upfront. For some people trading their vehicle in for a more fuel efficient vehicle makes financial sense. These are people who drive a lot of miles and currently have a gas guzzler. For an extreme example, I have a co-worker who traded her 2 year old Hummer for a Toyota Prius. This is someone who drives 50,000 miles a year and she says that the Prius has more than paid for itself.

In my situation, I only drive around 11,000-12,000 miles a year and have a 1 year old Odyssey. The thought of trading in for something more efficient has gone through my head just about every time I fill up....but I know that that is not a cost effective solution in my situation. I now try to stop and pick up items from stores that are on my way home, and when dh is home I use his more efficient car to make any extra trips out.

Everyone's situation is unique (age and value of current car, current mpg vs. new mpg, miles driven, etc) so you would have to sit down and do the spreadsheet to figure it out on an individual basis whether trading down makes financial sense.

Wow, 50K miles a year. That's over 4000 miles/month. If you assume around 15 mpg and $4/gallon, then your friend is spending over $1060 a month. Just by driving a Prius she saving around $700 each month. So in her case, yes, it's worth it.
Me? I drive a minivan. We averaged about 11K miles per year. We've also being driving the VW more when we all go out so we're saving some that way. Not worth it, $$ wise to buy a new car now. Still, we try to be economical as we can.

The way I look at it, if folks are buying new, more efficient cars just to be green, then for you. Just be careful if $ is the main thing you're trying to save.

 

[mkaccountant]

We just traded DH's paid off Jeep Wrangler in on a Nissan Rogue. The Jeep was up for inspection and would not have passed w/o at least $3000 put into it for a new transmission, exhaust system, etc. We are saving over $200 a month in gas, not making up for the payments, but helping. Also, not worrying the Jeep might fall apart on the road at anytime, is worth the extra $$ IMO.

 

[Crazy4Disney72]

We just traded in DH's 2006 Buick LaCrosse for a 2008 Hyundai Elantra. The Buick averaged about 20mpg and the Hyundai is averaging 30 mpg. DH drives 130 miles a day M-F, sometimes more than that if he has to work in a different office so the gas savings is significant. The Buick would have been paid for in a year and a half and now we just took out a new 4yr loan, but the monthly payment is a lesser amount and we should save at least $100 a month on gas on top of that. Insurance cost stayed about the same. For us, it made sense. We are also being very careful to not make any unnecessary trips to further conserve gas.

 

[MrsPete]

I went out for a walk this evening to find out that 4 neighbors went out to buy cars to save on gas...they traded in their current cars and probably lost sooo much on depreciation! One said that they were upside down by 8,000 and still made the trade to get better mileage. It just seems cheaper to drive what you already own. On th flip side is that I'd love to find a nice used sienna....maybe a neighbor can sell me theirs! I just missed the one down the street!

Oopps....sorry about the title...I meant for car to be cars!

You're exactly right -- it's false economy to trade in a car that has a good bit of life in it to save on gas. It'll take quite a while to get to the break-even point.

On the other hand, our car flat-out DIED -- literally, it's still dead in my driveway, and I'm trying to figure out what to do with it. So we bought a car that'll get good mileage.

 

[dpratt68]

My DH (economics major that he is) made a very detailed spreadsheet for his car, initial investment, gas cost, break even point, etc..

Even though gas prices have increased, he is still better off with his Ford EXPEDITION (read gas hog) than a new car. I think he came up with a figure of 7K in order to make a new car "work" for him.

Since he fills up once a month at approx $100 a tank = $1200 year.

It would take 5+ years (not quite six) to hit that point. If I am doing my math right, its a little over 5.5 years to break even for that 7k.

7K does not buy a new or used car. So for the meantime he will continue to drive his Expedition sparingly.

Is your husband retired? How does he get away with only filling his tank once a month?? I am very jealous.

 

[Cindy B]

Is your husband retired? How does he get away with only filling his tank once a month?? I am very jealous.

Nowhere near retired. He works a 3 day work week, with 2 of those days from home-- sometimes all three days are at home. His shifts are long -12+ hours each day.

The one day he goes into the office it is either a 30 mile commute or a 7 mile commute.

Since he has a three day workweek, he is only driving one day a week. The other days we either walk to things or use my car.

 

[DawnM]

My DH now fills his tank about twice a month now! Thank goodness for the new train system!

Dawn

Is your husband retired? How does he get away with only filling his tank once a month?? I am very jealous.

 

[CarolA]

You know I heard one today where it MIGHT be worthwhile to look into trading some cars.

One of my boyfirends friends lives out in the country. Current monthly gas bill $700!!!!!!!!! (They both drive SUVs)

At that rate you can start to see the cost/benefit faster!

 

[SarahKate]

Hmmm, it sounds to me that people who are jumping the gun to trade in their vehicles are really just wanting a NEW car and using the excuse of gas.

We just turned in our '04 Odyssey after a 4-year lease. We had the option of buying it and having to make payments on it for another 3 years before the residual would be paid off. We went back & forth, and back & forth again. I did NOT want a car at the time.

Then in May, gas hit the $4 mark. That is what made me think, hmmmm, maybe we really should give the van back and maybe we could get by w/ a car (we just have one child right now)

So we bought a 2008 Honda Accord which gets 21 city/31 highway. We got it for invoice cost and had a little to put down, so we got a FANTASTIC deal (and 2.9% for 60 mos).

Our payment jumped up $60 a month. BUT, we already have some equity into the vehicle because of the price we paid, plus an Accord is an investment and holds its value. The BEST PART is that instead of filling up once a week w/ the van, I now fill up about once every TWO weeks (the van had a 20 gal tank, the Accord has a 18.5 tank). I'm averaging 25MPG in the city whcih is way more than the sticker said (and that's a lot of stop/start driving) and I'm not sure yet what the average is in the city.

So I'd say it was definitely worth it for us. IF, on the other hand, we had owned our Odyssey, it may have been different - it would all depend on if we'd come out ahead in the trade-in or not.

BTW, my opinion is to watch out for those 0% for 72 month deals. Sure, you are saving a lot of money in finance charges that is true. But you are also spending less per month on your payments - if you decide to trade it in during your finance term, you may very well be upside down. If you paid extra each month, I'm sure you'd be fine.

 

[MrMarv]

One reason that those 0% for 72 months loans aren't all they're worth crowing about is because you can become 'underwater' or 'upside down' before the vehicle is halfway paid for, primarily because most American cars have horrendous resale value.

But a 72-month loan is very stupid to begin with for most of the cars out there; the fact that 84-month loans are now available (at least from Toyota, and eventually from everybody else), tells me that lots of folks are buying cars that they really can't afford.

 

[RayJay]

Mid-May, we traded in our 2000 Toyota Sienna with over 100,000 miles that was paid off for a 2009 Toyota Corolla. We got a great amount for the trade in, plus 2.9% financing, making it a good deal for us. The Sienna was rounding the bend and needing new tires, brakes, bigger repairs coming up soon, etc. We needed a new car anyway, so it was a good move for us.

Yikes, Toyota's are just getting broken in at 100,000 miles. I know several people with Toyota's well over 200,000, one friend is still driving an 86 celica with 350,000 on it.

RayJay

 

[Avonlady1001]

I drive a 2005 Nissan Quest and DH drives an 05 Hyandai Accent. I used to do all the driving around town when we went anywhere...now, I put an extra carseat in his car & we drive that whenever possible. It costs him about $40 to fill up and me about $80!!
Can't imagine trading mine in, even though it's paid off. I've thought about it, but one, can't afford any more payments, and two, I really do like having the room in a minivan!

 

[RACHELSMOM1]

I have a 2006 full size conversion van, with 3 kids to haul around and one wheelchair for Rachel. I have driven vans for 18 years and am not about to change now. Yes, it costs more for gas, but I just suck it up when I go to the pump and it hits $100.00 (ouch!). I see fewer vans the size of mine on the road or in the parking lots of the stores where I shop. While everyone else is driving their little bitty cars, we are comfortable in our living room on wheels, with enough room to spread out, and a tv with a dvd player, and plenty of room for our luggage for Disney trips. We just do fewer meals out ( a meal out for our family can run $36.00 to $40.00 and even more). That pays for the increase in gas costs right there!! Plus, I feel safer in my van. So, I plan to keep my large vehicle. I was even thinking it would be nice to own a Hummer H2, I have wanted one since they first came out with them. But, that would be a step down from my van, since my van has more room. Hope you all are happy in your little cramped cars, but that is not for me.

 

[CarolA]

I have a 2006 full size conversion van, with 3 kids to haul around and one wheelchair for Rachel. I have driven vans for 18 years and am not about to change now. Yes, it costs more for gas, but I just suck it up when I go to the pump and it hits $100.00 (ouch!). I see fewer vans the size of mine on the road or in the parking lots of the stores where I shop. While everyone else is driving their little bitty cars, we are comfortable in our living room on wheels, with enough room to spread out, and a tv with a dvd player, and plenty of room for our luggage for Disney trips. We just do fewer meals out ( a meal out for our family can run $36.00 to $40.00 and even more). That pays for the increase in gas costs right there!! Plus, I feel safer in my van. So, I plan to keep my large vehicle. I was even thinking it would be nice to own a Hummer H2, I have wanted one since they first came out with them. But, that would be a step down from my van, since my van has more room. Hope you all are happy in your little cramped cars, but that is not for me.

While I don't have any problem with you wanting your van, I find it intersting that you seen to feel that trying to be "insulting" was really required?

 

[RACHELSMOM1]

While I don't have any problem with you wanting your van, I find it intersting that you seen to feel that trying to be "insulting" was really required?

Sorry you feel insulted because I am happy with my van. Didn't mean to insult you. What did you find insulting, or are you just trying to get me to argue? I won't argue with you, I meant nothing by my post to insult anyone. Gee, why did I even bother to post? Why are you offended? You should just lighten up, I really meant nothing to offend anybody!

Happy Birthday America!!The land of the free and the brave!! Where I can still speak freely.