I drive a 2004 Pontiac Grand Prix, the kind with the bigger engine. I like my car - I like the features it has (although I wish the stereo had an aux in), I like how it drives, etc. No problems with the car, except the gas mileage and of course it’s getting older. It’s very reliable, though.
I know the conventional wisdom is that you should drive the wheels off a car, but is that necessarily true in my case? Most of my trips are around town, and in town I get about 18 miles a gallon. (Much better on the highway.) According to the Kelly Blue Book, the trade-in value for my car is around 8,300. (Now isn’t THAT a punch in the gut?)
Now, I could get something a little less luxurious, maybe in a stick shift (I’d have to practice on my boyfriend’s car) like a Pontiac Vibe or something a few years old in the 14K range, it seems. (This is important - my elderly father, who I love and do not want to upset, would have a stroke if I bought a foreign car.) I could get a much better gas mileage, although possibly trading off to a car that’s less comfortable for me. I love my heated seats!
Anyway, my point is, without knowing what gas prices will do, how do you decide if you should trade in cars? Right now I have no car payment at all. On the other hand, my car isn’t getting any younger and isn’t exactly going to increase in value. But if we do go up to really expensive gas again… anyway, what is the threshold at which I should trade?
Something like: consider how much you are paying per mile now (or use some figure like $3 per gallon). Then consider how much you would be paying in a more fuel-efficient vehicle.
How many more years would you concievably keep your car? Maybe 4? Run the cost difference out for 4 years.
Then see how much a car payment would run you for 4 years.
You could run this scenario for different gas prices. Then you can figure out the ‘break even’ gas price.
Yeah, but if gas stays low for a year and then suddenly bang, $7 a gallon, that’s gonna throw that math all the hell off. Not to mention that it might be more expensive, in that case, to get into a more efficient car.
I really ought to ride my scooter to work more, I know.
I’m looking at buying a car. The TLDmobile finally died and couldn’t pass inspection.
Now, bearing in mind that fuel prices are even higher here than in the States, I’m actively considering buying a car with a big, fuck-off six cylinder engine (my old car was a fuel-sipping 2.0 four cyl).
Why?
Because, like the OP, I mostly drive around town. I do very low mileage. Essentially, I just use the car as a commuter for a twelve-minute drive to work. My mileage is so low that last time the mechanic sticker that said “come back for your next service at X kilometres or Y date” found me achieving the X kilometres a full SIX MONTHS after the Y date. So, I figure it might be worth my picking up a car with a bigger engine to take advantage of the initial purchase savings (they can’t give the things away) and because I’m a big guy who can drive a small car if he has to, but really needs the space of a bigger one.
You know the numbers we don’t.
What is your gross income
What are your expencess
What is you net income and can you afford car payments?
How many miles do you drive a year?
Do you maintain your cars?
How stable is your job.
And do you have the cash for a new car?
In looking at a car last year I was looking at a Hybred, the sasles man took me over to the same model but not a hybred. Showed me the price differance about $5,000, and the differance in mpg. His coment was you can buy a lot of gas for the differance in price.
You say your car is worth $8,300. If you buy a car at $25,000 and get full trade in value, the differance is $15,700. You can but a lot of gas for that.
I have not purchased a car yet my numbers don’t add up. I do not have the cash at this time and I believe buying things on credit is bad debt. But in a year or two I will not have a choice and will have to do something.
This kind of thinking pisses me off. I know, I know: I’m the only person on the planet who thinks it’s the high road to pay extra if it results in an overall non-dollar benefit (as in: less consumption, lower emissions).
Sure, if you have a car already and it’s paid for and running fine, I’d say “keep it.” But if you need to buy something anyway, and you have the choice…I dunno. I guess the right answer is a personal one.
It’s when I have to perform far too much maintenance to make it worth it. My 1995 Civic just kept having one problem after awhile, and eventually I said the hell with it and got myself a 2006 SI. The friend I sold the old one to has had nothing but problems with it since then, and eventually had to pay buku bucks to completely rebuild the engine. The new one just requires an oil change every six months and the only problem I’ve had is a slightly balky shifter, which some Amsoil transmission fluid helped rectify.