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.
Absolutely!
15 MPG SUV driving 20,000 miles per year will consume 1333 gallons of fuel.
30 MPG Subcompact driving 20,000 miles per year will consume 667 gallons of fuel.
At $3.00 per gallon, the difference is $2001 per year.
Depending on your income, that might be OK, but let's assume that the subcompact costs you $5000 more than what your SUV is currently worth.
That means it would take 3 years to recoup your losses---if gas prices hold at $3.00 per gallon.
It also is a big change. Is the safety of an SUV worth $2000 per year?
Lots of questions.
I'll take those gas-guzzling '70s muscle cars off your hands! Man, missed my chance back in the Carter years to score. They were giving away 426 hemis!
There. *Now* it makes sense to dump it.
No, no, no, not yet.
What if the new, fuel efficient car costs you an extra $10,000 over your current SUV?
Then it might not.
You have also not considered what is the "cost" of having a smaller, less useful car versus a safe, roomy SUV.
It's tough to put a dollar value on those types of things.
Absolutely. I'm all for folks driving whatever the heck they want.
But if you have a car payment on an SUV it makes it a heck of a lot easier to exchange it for another car payment.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.