Thinking Of Trading In Your SUV
Here is a handy gas guzzler calculator to see how long of a payback it will take to buy a more fuel efficient set of wheels.
Going to the gas station and filling up that guzzling SUV makes trading for a hybrid a reasonable solution for most, and it could be reality punctuated by the Gas-Mileage Savings Calculator from Edmunds. The calculator takes the value of a trade-in compared to the cost of a more efficient vehicle and, based on driving distances and the cost of gas, determines how long it would take to break even. For example, I took our big 1995 Ford E350 15-passenger van and compared it to a 1995 Toyota Camry wagon and at $4.25 a gallon and 300 miles a month. At that rate it would take almost three years to make up the difference.
There is something else to consider that is not built into this calculator, it's reality. SUVs and trucks are dropping in trade-in value like the coolness meter after you found out your parents owned and drove an AMC Pacer. If you cannot get the estimated value in the calculator, your break even period is going to be further away than this tools demonstrates. So, that is something else to consider, how much can you really get for your SUV or truck?
Overall, I would say it is a good tool that gets you thinking about costs and payback periods. Sticking to a budget develops your self-discipline and increases your ability to say no in these situations where is just doesn't make sense to buy.
Labels: hack, money saving tip
Posted By: Joe on Friday, July 18, 2008
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