Gas prices and new cars...

[deathrex]

I was just wondering. Everyone is trading in their big suv's for smaller more economical cars. But when they do this they pick up a car note for what $300-$500 a month depending on how long of a loan and all that good stuff then still have to pay for gas ontop of that. I still drive my truck spending at most $200 a month on gas. I see it that id save more money that way then trading in for a new car. Just kinda wondering why people are doing this. I mean yeah you get a new car. But that also comes with higher insurance cost and another car payment. Discuss...

[GSRteg®]

Id get an used car pay it cash and call it a day. **** dealers!

[2turbo4u]

Well alot of dealers are not taken back these gas guzzlers as trade in anymore. Most people who are in high loans with late model trucks (suv) it works out cheaper to get rid of the vehicle and take a smaller more fuel sipping vehicle. Cause they save money on insurance, less cost of ownership since fuel prices keep going up. Remember 93 octane will go up the most and if your vehicle takes that the more you keep paying, when you use 87 it will go up only at a slower pace to get to where 93 was.

[JennB]

Not really. Most of the people that are really suffering from gas prices have newer, large SUVs and trucks. They can trade them in on smaller cars that cost less and keep the same payment or even reduce their payments. I also don't know why you would think insurance on a car would be more than an SUV.


As for premium gas prices rising faster than regular... huh? The gap between regular and premium has been steady for a long time. It used to be 10 cents between each grade but it's usually 15 cents now. If regular rises 20 cents, premium rises 20 cents. I've been driving premium only cars for years and I've never seen premium rise when regular did not.

If you're driving a big SUV, the best thing to do is get rid of it when you can. The residual value on them is falling really fast and demand is going down so if you can, get something else. You may take a little negative equity but if you get something less expensive and with much better gas mileage, you can offest that a little and not still hold onto an asset with value that is dropping like a rock. If you can't trade it without taking a really huge equity hit, drive it as little as possible and try to sell it yourself.

[AnTi-PooN]

ef std 40 mpg FTW

[BanginJimmy]

I love that full size prices are going down. I am hoping to be buying a new or slightly used fullsize truck next year.

[deathrex]

I love that full size prices are going down. I am hoping to be buying a new or slightly used fullsize truck next year.

I actually read an artical somewhere. A guy in texas is buying up used suv's and trucks and selling them in South america for twice as much as he pays for them. He got 2 2005 f150's for 10k each and flipped them in south america for 20k each. It cost him $2200 to get them shipped there but in the end hes making close to 8k profit. The gas prices there are so cheap there still such a high demand for thoes types of trucks and suv's. Ill try and find it and post it up.

[deathrex]

Not really. Most of the people that are really suffering from gas prices have newer, large SUVs and trucks. They can trade them in on smaller cars that cost less and keep the same payment or even reduce their payments. I also don't know why you would think insurance on a car would be more than an SUV.


As for premium gas prices rising faster than regular... huh? The gap between regular and premium has been steady for a long time. It used to be 10 cents between each grade but it's usually 15 cents now. If regular rises 20 cents, premium rises 20 cents. I've been driving premium only cars for years and I've never seen premium rise when regular did not.

If you're driving a big SUV, the best thing to do is get rid of it when you can. The residual value on them is falling really fast and demand is going down so if you can, get something else. You may take a little negative equity but if you get something less expensive and with much better gas mileage, you can offest that a little and not still hold onto an asset with value that is dropping like a rock. If you can't trade it without taking a really huge equity hit, drive it as little as possible and try to sell it yourself.

Alot of dealerships now dont want to take the big trucks and suv's because there having such a hard time selling them. IF they do accept your trade, in turn they give you crap for a trade in value and you take a huge equity hit.

[NoRotor]

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+1 to the fellow Accountant, lol