If you are thinking about selling off the family tank in an effort to save money, you might want to think again. Some financial experts are warning that it might be cheaper to hang on to these $100-per-fuel-up, formerly fun, now just-giving-you-a-money/eco-headache SUVs and trucks.
Impossible, considering the fuel efficiency of a Prius or Honda Fit? Consider this from a story in the NY Times:
Jack Nerad, executive editorial director and executive market analyst
at Kelley Blue Book, says that the rate of depreciation on large
S.U.V.’s over the last six to eight months has been about twice what is
normal.
Here are what experts say you should consider before posting an ad on Craigs List:
What's the true cost of the trade-in?
Is a smaller car even practical?
What's your large vehicle worth?
What's the demand for small cars now? (Spoiler alert: high!)
Is this an emotional or a rational decision?
On that last one, here's some help in determining whether the numbers work out -- a gas mileage savings calculator from Edmunds. There, you'll find it would take 15 years to break even on trading in your 2005 Ford Escape for a new Toyota Highlander Hybrid.
Of course, money isn't everything (just most things). And maybe you've felt the call of Al Gore and would like to end your dependence on fossil fuels. Well then, by all means (and this is me speaking, not the experts), get rid of the guzzler and get in line to buy one of these.
What's your family planning to do with the low mpg roadster? Selling? Parking? Sucking it up and keeping on keeping on?
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