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Author Topic: Why It Doesn't Make Financial Sense To Trade-In For A More Fuel-Efficient Car Back to Topics
CH3CH2

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New Jersey

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Message Posted: Mar 22, 2012 9:22:40 AM

Why It Doesn't Make Financial Sense To Trade-In For A More Fuel-Efficient Car
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Travelguy1
Rookie Author Appleton

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Message Posted: Aug 16, 2013 10:43:35 PM

I can understand the premise on buying a hybrid, full electric, or more fuel efficient car, i.e. SMART Car, MINI, or Fiat 500. Though when you look at the pricing of these new cars as opposed to a used car that, if you're lucky, is a CPO (Certified Pre - Owned) vehicle, in this case a Prius V or Ford C - Max as compared to a '99 Impala driven wisely, you're going to choose the Impala since it's less expensive to pay to take it off the lot as opposed to $15,000 - $40,000. All that, and if you're lucky, you can get into the low 30 mpg range on the highway or combined. Even look at the Civics form the early to mid 80's getting well into the 30 or 40 mpg range.
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donnanow
Sophomore Author Oakland

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Message Posted: Aug 10, 2013 3:11:35 PM

I often find myself tempted to get a Prius-C or even an electric car ! If I could afford a Leaf or Volt or Tesla-lol- I'd do it!!
My old 98 Rav4 only has 115k but only gets me 24-26 mpg, but its paid off & insurance is low ........
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GrumpyCat
Champion Author Alabama

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Message Posted: Aug 4, 2013 9:02:21 PM

This is the key to the whole (year old) article. Everything else is padding around this statement,

"While choosing a more fuel-efficient model is certainly sound advice if you’re already in the market for a new car or have one that’s just coming off lease, it’s not financially advantageous to trade-in a vehicle – particularly one that’s already paid for and otherwise meets your needs – solely for the sake of obtaining additional mpg, even if gas prices spike significantly higher."
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rick_evans
Champion Author Boston

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Message Posted: Aug 4, 2013 7:32:28 PM

Why it doesn't make sense to buy anything but the most generic plain vanilla car with no frills, style or luxury.

Because like the premise of this topic everything in life is bean counting.
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timewalker
Sophomore Author Indiana

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Message Posted: Jul 19, 2013 6:10:11 PM

Sounds like it is time to start gearing up - or down for better mileage
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FrankLee1
All-Star Author Minnesota

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Message Posted: Jul 19, 2013 2:26:35 PM

The whole premise is wrong. I've been buying nearly free (under $100) to free cars for decades that get 30 mpg or better so there is no excuse for not having an economical car if you want one.
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wvmtngeek
Champion Author Virginia

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Message Posted: Jul 19, 2013 11:22:27 AM

Imho no car runs better than a paid for car!
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MTK143
Veteran Author Pittsburgh

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Message Posted: Jul 19, 2013 11:07:05 AM

the cost of the cars
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markcayer
All-Star Author Ottawa

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Message Posted: Jul 19, 2013 10:23:15 AM

Worried about CO2 and green house gases??
Driving a fuel efficient car can certainly help but if you are not in the market for another car right now ...

Plant some trees.
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Floridaman2013
Champion Author Florida

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Message Posted: Jul 19, 2013 9:03:27 AM

GBHHUGVA did bring up some interesting points though to think about. I am not a "Ford" person most of the time, I drive lots of brands, whatever makes me and the wife happy, is safe in crash tests, pulls a trailer, good on fuel, and is reliable, handles great, and have the features we want for the right price.
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Dennis783
Champion Author Des Moines

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Message Posted: Jul 19, 2013 8:05:53 AM

it doesn't make sense to trade in just to get more fuel efficiency.
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Houckster
Champion Author Atlanta

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Message Posted: Jun 24, 2013 9:33:50 AM

The purchase of a new ride should never be based specifically on fuel-efficiency unless the cost of a new car is within budget and you're so concerned about the environment, specifically greenhouse gases, that other factors are less important.

No matter how clean a car is, it will always emit greenhouse gases in the form of CO2. For gasoline, it's 8,887 grams (19.6 lbs), for diesel it's 10,180 grams (22.4 lbs) CO2 per gallon. These are the inevitable byproducts of combustion and there is at this time, no way to capture the CO2. Recently it was announced that CO2 levels in the atmosphere had reached the highest point in three million years.

Most people don't have the income to permit the purchase of a new ride for this reason only but if one's income is sufficient, buying a new ride to replace a vehicle that's less fuel efficient is a very important thing to do.

Rising Levels of CO2
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GLM4205
Champion Author Toledo

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Message Posted: Jun 22, 2013 2:25:59 PM

I think it all depends on how you drive in addition to the car itself.
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forresj
Champion Author Wilmington

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Message Posted: Jun 22, 2013 10:14:02 AM

It only makes sense if you plan to keep the vehicle for a long time to take advantage of the fuel savings. More efficient vehicles typically are alot more expensive to buy outright.
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OilerFan
Champion Author Tulsa

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Message Posted: Jun 22, 2013 8:10:25 AM

It is cost effective if you're doing it when you would be getting a new car anyway.
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carinthuist
Champion Author San Francisco

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Message Posted: Jun 22, 2013 1:16:31 AM

It depends fuel costs trade in
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giwan
Champion Author Michigan

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Message Posted: Jun 21, 2013 12:09:19 PM

Just basic economics. Most people don't do the math
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ricebike
Champion Author New Jersey

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Message Posted: Jun 19, 2013 6:04:46 AM

well said, Houckster
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priver
All-Star Author Alberta

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Message Posted: Jun 18, 2013 11:21:14 PM

I dont listen very well, sorry..
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Houckster
Champion Author Atlanta

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Message Posted: Jun 16, 2013 1:42:47 PM

OILFAN writes: At some point, common sense needs to be at play.
_____
That's essentially the point. You have to play your own devil's advocate and defend the contention that you'd be better off with a new ride. Questions like the reliability of your old ride, the CPM of the new vs the old ride, utility, economics and other questions have to basically fall into the new ride's category before it's smart to buy a new ride.
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rick_evans
Champion Author Boston

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Message Posted: Jun 16, 2013 7:03:32 AM

I doubt many Forbes readers are sweating fuel prices.
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OilerFan
Champion Author Tulsa

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Message Posted: Jun 16, 2013 5:51:00 AM

At some point, common sense needs to be at play. You drive what you drive. But when it comes time to buy something new (due to maintenance costs on the old car, or whatever decision), it makes sense at that time to consider gas mileage in buying the new vehicle. But obviously, it doesn't make sense to just change vehicles for that reason alone unless the old vehicle only gets about 4 miles per gallon; but if that were the case, the vehicle probably has too many mechanical issues to continue driving it anyway.
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MertieMan
Champion Author Lexington

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Message Posted: Jun 16, 2013 2:01:45 AM

I had to trade or buy about a year and a half ago because my car was totaled by a dump truck hitting me in the rear, but it wasn't for gas mileage alone.
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oilpan4
Champion Author Virginia

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Message Posted: Jun 14, 2013 10:01:48 AM

I sold our 2000 lincoln town car (sold my self, not traded) and bought a 2003 kia rio.
The Kia does about +13mpg better on the highway and almost +10mpg better in the city.
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51stovi
All-Star Author Nashville

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Message Posted: Jun 14, 2013 7:42:03 AM

When you sell a Isuzu Trooper and buy a used Subaru Outback and increase your MPG by 10, it makes sense.
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CactusBobs
Champion Author Arizona

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Message Posted: Mar 28, 2012 11:22:35 PM

None of this works when buying used . often a used small car costs just as much as a used big truck or SUV . so trading "smaller" may save you a ton of money !
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KD8FQM
Rookie Author Michigan

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Message Posted: Mar 28, 2012 10:19:21 PM

In our case, the car we had (a 2000 Nissan Maxima) had over 200K miles, was starting to leak transmission fluid, needed brakes and tires and other minor maintenance. It was time to trade. We chose a VW Jetta TDi SportWagen, primarily because of it's mileage. So, since we needed a new car anyway, it made sense to me to get one that got decent mileage. My bride wanted a Prius or Chevy Volt, but there was no contest. Love my Jetta.
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pj29
Rookie Author California

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Message Posted: Mar 28, 2012 3:28:51 PM

It's hard to pay more for a car than what we are used to in the hopes of better gas mileage. With the state of jobs and trying to make ends meet....who can afford to change anything?
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Cummins2500
Champion Author Iowa

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Message Posted: Mar 28, 2012 3:10:32 PM

I've noticed after talking to some people they forget to factor in the interest on the loan for the new vehicle, the depreciation of it over say 5-6 years and the extra cost of insurance, every new vehicle I've bought has always cost more for insurance then the old one I got rid of. Now if you drive 30K or more miles every year then yes it can pay to buy a new one that gets better fuel mileage but if you drive say only 12,000 miles a year like some I know then it will take longer to get to the break even point.
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simmyMI
Rookie Author Ann Arbor

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Message Posted: Mar 28, 2012 9:34:00 AM

I think it all depends on how you drive in addition to the car itself.
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kxy4fw
Champion Author Denver

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Message Posted: Mar 28, 2012 9:31:04 AM

Ok. Thanks.
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 28, 2012 9:22:59 AM

Ford has begun production of its most fuel efficient car ever, 86 mpg.

Unfortunately, the new Ford Fiesta will not be available here in North America.

Also a Diesel, why can't our country get them??????
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 28, 2012 8:47:31 AM

After reading the news on Honda I'll stay with Ford!!
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Bell30012
Champion Author Atlanta

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Message Posted: Mar 28, 2012 8:16:08 AM

For some people it does make financial sense. I drive a lot. I mean, a LOT. I bought my 2011 Toyota Prius Three on January 8th and the car had 5 miles on it. Now it has over 8000 miles on it! At this pace I will put 40,000 miles on it per year. With gas prices at $4 per gallon, I'd be looking at $3200 in fuel expense due to the 50 mpg. If I was still driving something getting 20 mpg, I'd be spending $8000 to drive the same 40,000 miles.

Think about how this will add up if I drive the car for 5 years. That would be $24,000 in savings about what I paid for the new Prius. My 2003 Lincoln Navigator which is now dubbed the Yard Ornament (it doesn't fit into the garage with all the toys) only gets 14 mpg going downhill with a tailwind. It would cost me $41,142 MORE dollars to drive it the same miles over a 5 year period.
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 28, 2012 7:54:03 AM

Are the hybrids from Honda affected by the recall too?
You dont think this welding problem could happen to other Hondas too?
Many share same parts!

Honda Recalls CR-V to Fix Control-Arm Problem :

By Jake Lingeman
By AutoWeek Fri 8:30 AM

Honda is recalling CR-V's to inspect and possibly replace the right-front lower control arm.Honda says that the part could have been made with an improper welding process. Over time the control arm could break at the weld. If that happens the steering would be affected, possibly resulting in a crash.

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jedispam
Rookie Author Fort Worth

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Message Posted: Mar 25, 2012 11:14:15 PM

nice desert
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DesertRat2011
Champion Author Riverside

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Message Posted: Mar 25, 2012 11:01:56 PM

Made sense for me as I bought a used TDI for $5,000

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OilerFan
Champion Author Tulsa

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Message Posted: Mar 25, 2012 10:41:16 AM

Short sighted. Its possible to see gas prices double in the next year (Iran). Justification could definitely change during that time.
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the1roadhog
Champion Author Atlanta

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Message Posted: Mar 25, 2012 7:58:24 AM

Takes years in most cases to justify.
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bustermoves
Champion Author Fort Worth

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Message Posted: Mar 25, 2012 6:33:51 AM

not really
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 24, 2012 6:46:05 PM

A NICE USED FORD Escape/MERCURY Mariner/MAZDA Tribute HYBRID IS THE WAY TO GO!
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emtrob2012
All-Star Author Myrtle Beach

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Message Posted: Mar 24, 2012 12:28:36 AM

it can take years to make up the cost of your purchase..
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ProfDude
Champion Author Illinois

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Message Posted: Mar 24, 2012 12:13:06 AM

It made sense for me (an outright sale rather than a trade-in). About 6 weeks ago my '03 Sable needed a new transmission that would have cost me the value of the car. It was time to move on to a newer, more reliable vehicle anyway, so why not a more fuel efficient one...?

Sometimes an older vehicle has run its course for a number of reasons. I agree that for fuel efficiency alone the change would not have been justifiable, of course.
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DCD_Guy
Rookie Author San Francisco

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Message Posted: Mar 23, 2012 11:56:06 PM

Trade-in will cost some extra money to pay for the profit of car dealers,
and could be hardly paid back through fuel-efficient vehicle in short time.
Don't trade-in, but retrofit your current vehicle into more fuel efficient
could be a cheaper solution. $500 fee for DCD retrofitting could be paid
back in one or two years, depending on the mileage you drive annually.
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13Octane
Champion Author Tucson

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Message Posted: Mar 23, 2012 6:34:47 PM

nothing makes sense
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briandbec
Champion Author Tucson

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Message Posted: Mar 23, 2012 4:05:40 PM

Thank you, forum-member Gas Buddy.

Unless you are paying $700/month on a luxury car or SUV, buying a new car to replace it is generally not a smart idea. Now, if you can dump your car, save $200/month on payments and either get the same or better gas mileage, THEN it is wise to switch.
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 23, 2012 1:13:02 PM

A NICE USED FORD/MERCURY/MASDA HYBRID IS THE WAY TO GO!
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timmyC4
Veteran Author Twin Cities

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Message Posted: Mar 23, 2012 12:16:41 PM

I tried/bought a diesel, 2003 VW Tdi. Worth every penny.
Never thought I'd like one till I drove it. WOW, you drive past the pumps.
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GBHUGVA
Champion Author Virginia Beach

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Message Posted: Mar 23, 2012 12:04:21 PM

Rather give the $ to Ford/Lincoln on the MKZ Hybrid than support the towel-head idiots by buying more gas!

Its about supporting our economy vs the others, alcy!
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KansasGunman
Champion Author Kansas

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Message Posted: Mar 23, 2012 9:09:45 AM

The price of gas/diesel is what it is: as stated in my profile, "Don't buy or drive what you can't afford and then complain about fuel prices."
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