Posted on 08/31/2005 9:53:59 AM PDT by Millee
As gas prices continue to rise, Denver area car dealers say they're seeing more drivers trading in their gas-guzzling sport utility vehicles for smaller cars or hybrids.
Honda dealer Ralph Schomp in Littleton said some 20 SUVs were turned in over the weekend, while at least two other dealerships report similar numbers.
Among the popular models -- Honda's Accord and Civic hybrid model, as well as Toyota's Prius, which is also a hybrid.
Some dealerships report that the waiting list for Toyota's hybrid Highlander -- which keeps the SUV body style -- is now 12 to 14 months.
Besides gas prices that are creeping closer to the $3 a gallon mark, new car buyers may be steered to the car sipping vehicles by the new federal Energy Policy Act that includes a tax credit of up to $3,400 for hybrid or diesel vehicles.
The state is also offering a tax incentive of as much as $2,300.
If you can afford it, get a smaller car to use for most of your driving and keep the SUV.
Here, take your pick of the shoe box that fits you. lol
http://www.fueleconomy.gov/feg/byMPG.htm
You are right. It will be the end of American automakers.
My sister has a 2001 Odyssey and says it gets terrible mileage. Almost all her mileage is city driving. Her husband has a Dodge Ram diesel. They're screwed.
Well I agree, my vehicles are free and clear, and when they die I will trade them in for slightly used vehicles with better gas mileage.... but I pay the same for my Bus Pass whether gas is $1 a gallon or $4 a gallon... SO I think I can handle the $35-$50 fill up once a month or so, and be far better off than buying a new car...
But then again, I have no car payments....
Depending on the hybrid, you may not have to wait at all.
Spent the past two weeks looking for an Accord Hybrid with Navigation. All the dealers were like, "BUY! BUY NOW!! GAS IS SOARING!!THE CARS ARE FLYING OFF THE LOT!!".
But you know, the same damn cars were there day-after-day.
Found one we liked, and under invoice, and drove it off the lot today.
Next few weeks I'm going to hunt for a cheap Cherokee 4x4.
Fortunately, we are getting past the point where they have to build hybrid cars to appeal only to environmentalist hippies. The notion that "if it's ugly, it must be efficient" doesn't work for most people.
Before you do that, take this little test:
1. Calculate the number of miles you drive per year/month.
2. Based on this number, determine the number of gallons you will consume per year/month at your 16mpg rate AND determine the number of gallons you will consume per year/month at rates of 20 mpg, 24 mpg, and 30 mpg.
3. Calculate how much money you will LOSE by trading out of your SUV.
4. Calculate the amount of money you will spend getting a new vehicle.
5. Calulate how long it will take you based on the monthly reduction in gallons of gas consumed for your gas savings to offset the financial bath you take by trading out of your SUV.
At $3, the yearly fuel cost is $1125
At $4, the yearly fuel cost is $1500
Here. This is better:
16mpg, $2.00 gas, 24,000 miles per year = $3000 fuel cost
At $3, the yearly fuel cost is $4500
At $4, the yearly fuel cost is $6000
There. *Now* it makes sense to dump it.
:-)
I currently have 4 completely paid for vehicles in great condition. I have no plans at all to buy a new vehicle. Now if I can just afford the gas! lol
You're right about that, but the "discounted" price on this vehicle last spring was still about $5,000 more than it is now. This full-sized truck is now selling for about $2,000 more than I paid for a mid-sized truck 11 years ago!
It's also unrealistic to estimate fuel costs over the 10-year life of a vehicle (that's at least how long I keep a new vehicle) based on fuel prices when they are at a historic high.
The only thing that will kill SUV's would be long-term fuel rationing. Otherwise, people with money will keep on paying.
Fugliness is the only thing keeping hybrids from taking off in my humble opinion. People have shown that they'll pay lots of money to look trendy, but fugly does-not-equal trendy.
(12,000 miles, 16 mpg)
$2.00 per gallon = $1500 in fuel
$4.00 per gallon = $3000 in fuel
Now, let's see what the 20,000 mile driver will accomplish by trading out of the 16 mpg vehicle and getting one that gets 24 mpg.
24mpg, $2.00 gas, 20,000 miles per year = $1667 fuel cost ($833 ANNUAL savings)
At $3, the yearly fuel cost is $2500 ($1250 ANNUAL savings)
At $4, the yearly fuel cost is $3333 ($1667 ANNUAL savings)
So, at $3.00 per gallon, someone who drives 20,000 miles per year and trades out of a 16 mph SUV into a mid-size sedan that gets 24 mpg will save $1250 per year or a little over $100 per month. If that driver is still making payments on the SUV, you can rest assured trading out will result in a loss on the trade. Is that worth $100 per month savings in gasoline? Only if the cost of trading out is LESS than $100 per month.
Actually, in some places it does. Places like Ithaca, Ann Arbor, Berkeley, and many other centers of hardcore academia. In the Real World, you are absolutely right!
Odds are, the Dodge gets better mileage than the Honda.
My '99 Dodge averages 19-20 mpg. Not bad for a full-size vehicle.
And that should go up considerably once I get my new toy put on.
SUVs have been around for a while now. That alone would tend to increase the numbers of SUVs being traded in. I did look at hybrids last year at trade-in or buy time, but decided to keep the old SUV, probably forever, the cost of fuel still not being as big a deal as the cost of the vehicle.
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