Keep SUV or Sell?

[pandapab]

I own a 2000 Toyota 4Runner and it's completely paid off. It's incredibly reliable, in great condition, and I love it, but the 15mpg is painful for my wallet and conscience.

I want to get a smaller, used car that is just as reliable. I don't have much cash on me though, and the trade-in/sell value for SUV nowadays is pretty sad. I think the most I could get for it would be $6500.

Are there any cars out there for that price that would be just as reliable and solid as my trusty 4Runner? I'm a bit scared of the unknown.

Would it make sense to take out a car loan on a vehicle that has better gas mileage when I don't currently have any car payments? That is my dilemma. I pay through the nose for gas ($300 a month) but I have zero car payments.

I guess I can just wait and save until I can pay cash for a better car too.

[khorrell]

I think that an important factor to consider is how much driving you are doing. Rough math tells me that at $300/mo, you're probably buying around 85 gallons of gas, which equals nearly 1300 miles a month.

Say you purchased a car that got 25 mpg. That same 1300 miles is going to require 50 gallons of gas, which would be just over $180 dollars at 3.50 a gallon. Changing cars would, hypothetically, save you $120 a month in gas. So, how do the costs of changing cars compare to that $120 per month?

Another factor is where the price of gas is headed. Do you think it will continue to climb, will it level off, or might it even go down?

Another thing to consider is trying to reduce your driving. If you could decrease your monthly mileage just a little bit, that would help. I know that I have been thinking a lot harder before I hop in the car.

It's a tough decision...good luck!

[lucille]

When the gas savings every month was more than a car payment was going to cost we got another vehicle as our main car. We kept the SUV but relegated it to the second car that gets less driving. Were hoping to be able to get another car with better mpg or a motorcycle or scooter to take it's place. The SUV will probably hang around for blizzards and trips to the lumber yard.

[MSMomsmoney]

I am going through a similiar dilemma right now as well.

I have 2002 Dodge Grand Caravan. It is paid for. Has 95K+ miles on it. The gas mileage stinks on it.

Im considering purchasing a Toyota Prius. Having a hard time with the fact that Ill have to make car payments again...I can trade in minivan, and put $4K down...but Ill still have car payments...

I dunno...still mulling it over.

[gt0163c]

Originally Posted by MSMomsmoney

Im considering purchasing a Toyota Prius. Having a hard time with the fact that Ill have to make car payments again...

When I was looking for new vehicles, I looked into a hybrid. Since I was mostly interested in saving money, rather than reducing auto emissions, I determined that it wasn't financially beneficial for me to purchase a hybrid. I do mostly city driving, but I only drive about 6000-7000 miles a year. Even with high gas prices, it would take me over five years (might have been 6, I don't have the numbers handy) to break even on the higher initial cost of the Prius. That also did not factor in being tied to the dealership for many repairs, unexpected maintenance/repair costs due to hybrid technology and unknown reliability. And, on a eco/green related note, I do wonder what happens to the battery when it finally quits.

I ended up getting a Toyota Matrix. I got a very good deal and have been happy with the 31ish mpg city driving that I get.

I think hybrids are great in terms of reducing gas consumption and emissions, however, at least for me, it wasn't a large enough economic advantage over the life of the vehicle to make sense for me. And I urge everyone who is considering one to figure out the true cost savings and how much the "it's better for the environment" factor is really worth to them.

[Lisa23]

We just bought a Prius, and it's a great car so far. Rides like a big heavy car, nice and solid, yet with the great mileage. Even still, my spouse has long commutes, and we pay through the nose for gas.

Luckily, we can cover it, but I feel so nickel and dimed lately, what with the gas, and the groceries, and all these little state fees massachusetts has added so they say they aren't raising taxes (that was a Romney move).

grrrrrrr

[spencer]

If I were you I wouldn't sell it. My reasoning is that when you sell to dealership (I assume trade in) you lose money as they'll never pay you what the car really costs. The when you buy from the dealership (again assumption) you'll lose again and the bigger problem is that you don't know if the car you are buying is in good shape or has been in any accidents. You can do private sell/buy but that's a major waste of time in my opinion. Anyway, good luck!

[cindybythesea]

A 4Runner isn't that horrible on mileage as far as I know. I would just keep it unless you have a whole lot of extra money laying around, which none of us probably do

[moneymatters]

If you are going to get rid of it, just sell it yourself, and then use the money you gain from the sale to buy a cheap reliable used car for about the same or slightly more. That way you can save on gas, and not have to pay a whole lot.

In my opinion new cars are a money hole - they depreciate the moment you drive them off the lot. You can save a lot of that by just buying a 2 or 3 year old car.

I bought my sedan for $7000, and it is still running great 5 years later.

[DistilledRose]

I would say either trade it in for something more efficient or sell it and buy something smaller. If you really don't use all the amenities an SUV provides then you are dragging around dead weight.
Gas prices are only going up and I think the value of SUV's is going to plummet.