Dale Gribble
Posts: 3560
Joined: 9/17/2003 From: Pittsburgh,
PA, USA Status: online
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Do you have a car payment right now? Will you have a car payment with the new car? If you don't have a car payment and you have a paid of truck, it is going to take a LONG time to make the thousands back from the cost of the new car, payments. 9MPG sounds terrible, and very low (might need a tuneup or lighter foot). Quick math- Gas price $3.65/gallon Miles to work, round trip- 30 daily, 150 weekly * 52 = 7,800 miles annually 7,800/9MPG = 867 gallons * $3.65 = $3,164.55 If you get that Accord, it will get 25MPG lets say. 7,800/25 = 312 gallon * $3.65 = $1,138.80 Annual fuel cost difference = $2,025.75 So, you will need a car payment less then the difference to make it worth it. $2,025.75 / 12 = $168.81/mo. or less. If you can't get a car payment for less then $168.81 monthly (or $168.81 less then your current car payment) then you will just break even. Keep an eye on the big picture. 25 MPG sounds good, but it will take years to make it up. If it's a $14,000 car, and provides you an annual fuel discount of $2,025.75 then its going to take you basically 7 years to come out ahead (less depending on how much you get for your trade).
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