Sometimes I think it helps to gather a little perspective on the situation. I’ve said many times before, that we have 5 cars. 3 are really weekend diversion vehicles and see very little use (1000 miles each, per year, is pushing it.) since they have two seats a piece, are paid for, and there are four butts in the family, they won’t be pressed into commuter service and should be considered off the table.
The remaining two are a Subaru STi (20 mpg, owe $15k) and an Avalanche (14-17 mpg, owe $6k)
Of the two, I’d probably swap out the Subaru for something with an automatic and better gas mileage…but I probably won’t sell either. Why?
Because selling the Avalanche would be stupid. We owe $6k on it, would lose a LOT of money in the trade, and lose the ability to do ANY kind of hauling (we helped a friend move this weekend, just as an example)
Leaving the Subaru. Lets just say in the exchange, that I only lose $3000 in value over what I have in it. (not unusual, the STi is still desired by racer types)
$3000 would take a LONG time to pay back in improved gas mileage. Assume our 22 mile commuter round trip could be done at 30 mpg, rather than 20 mpg. That’s 550 gallons annually with the 'ru, and 366 gallons with the replacement. 184 gallons saved at $4 takes 4 years to break even.
OR. Carpool and your gas consumption nearly halves. Work at home two days a week and consumption drops by 2/5ths. Spending no additional money, we could go from driving 17,000 miles a year to 6600 miles, saving $2300 a year (assuming 18mpg and $4 a gal)
There’s handwaving involved but you better be dedicated to sell a nearly paid off, poor mileage vehicle with plenty of life left in it for one that may or may not serve your purposes and takes 4 years to break even.
(watch while everyone crawls out of the woodwork saying ‘that doesn’t work for me!’ I understand there are folks who have to buy gas or eat. I don’t have an easy solution for that.)
I think what we’ll see is that everything will be more expensive. We’ve gotten used to cheap milk, cheap meat, cheap gas, cheap everything. There’s plenty of notches in the belt to tighten.