Why now is a great time to buy a gas guzzler

[RedBirdBrain]

A used one, anyway - I haven't figured up savings and incentives on new vehicles.

According to this article, the resale value of a Chevy Tahoe has dropped by 17% in the last year. Assuming the for-sale price of a used has dropped a similar amount, that extra money buys a lot of gas.

A used Tahoe that was $40K last year, according to those numbers, would now cost $33,200. Let's compare that number to purchasing a Lexus RX400h. They're currently selling used for what a Tahoe would have cost last year, about $40K. The Tahoe gets about 17 combined city/highway MPG. The Lexus, 29 MPG combined.

Let's say gas remains stable at $4.29/gal (a big assumption, I know). If you drove 15k miles a year, you're paying the following:

15K miles @ $4.25 /gal:
Tahoe - 882.4 gals of gas = $3750.20
RX400h - 517.24 gals of ga = 2198.27

Lexus savings = $1551.93/year

At that rate, it would take 4 years and three months to recoup the $6800 difference in the two vehicles - assuming you paid cash and did not finance the difference, in which case it would take even longer.

-RBB

[JK]

Would you also need to figure in the depreciation value of each over that period of time?

[Sheriff Blaylock]

We bought the 400-h a couple of years ago. At that time with a house and the deicision to have a baby we were in need of an SUV.

I had some buyer's remorse with the whole hybrid thing at first but looking back that was a great decision. Not only is the gas savings nice (we live WAY out in the suburbs...lots of stop and go) but the year we bought it we received a 2,000 tax credit.

[RedBirdBrain]

Would you also need to figure in the depreciation value of each over that period of time?

That's always a risk, but one could argue the Tahoe has already seen it's big depreciation hit. I suppose it would depend on whether gas prices level off or continue to rise to $5+ and above. You could also factor into the Lexus the cost to replace the hybrid battery - it's rated for 100K miles, and will set you back three large if/when it fails. If you trade it in with less than 100K miles, you're likely OK, but I don't think the Tahoe (or other truck-based SUVs for that matter) is the sinkhole economically that some think it is.

-RBB

[TTB]

Both of my cars get 27-28 mpg and have 60,00 to 100,000 on them.

I won't be buying any new or used car for a while unless one of them totally breaks down and the next one will be some sort of hybrid or get closer to 50 mpg.

If we had a 3 car garage, I could see getting a used SUV for shorter drives, hauling things around ,etc but that's not the case.

[Razzy]

Buy a motorcycle. They get 55-75 mpg and they are cheaper.

No, you cant haul your family on them nor can you ride during inclement weather but as a commuting vehicle they wouldnt be bad - if you know (or are willing to learn) how to ride one.

[ItsOnlyTheRiver]

That's always a risk, but one could argue the Tahoe has already seen it's big depreciation hit. I suppose it would depend on whether gas prices level off or continue to rise to $5+ and above. You could also factor into the Lexus the cost to replace the hybrid battery - it's rated for 100K miles, and will set you back three large if/when it fails. If you trade it in with less than 100K miles, you're likely OK, but I don't think the Tahoe (or other truck-based SUVs for that matter) is the sinkhole economically that some think it is.

-RBB

Well, they are if you bought them before this resale hit which is probably why they have the reputation they now have.

[kah]

What puzzles me is the general reluctance to build fuel efficient cars. People get all excited over the Toyota Prius and that 45 mpg on the highway business. But the Geo Metro did that on a regular old engine. I don't get it.

[Bleacher Creature]

What puzzles me is the general reluctance to build fuel efficient cars. People get all excited over the Toyota Prius and that 45 mpg on the highway business. But the Geo Metro did that on a regular old engine. I don't get it.

What was the cost of gas when the Metro was introduced?

[kah]

What was the cost of gas when the Metro was introduced?

A lot less. Which would make my point even stronger. If a car made some years ago, using a conventional engine, can match the performance of the fancy-dancy expensive hybrid, is it not within our ability to make every car engine more efficient? Right now?

And for the love of Christ why aren't automakers doing it? Don't they understand they'll sell more cars?

[Bleacher Creature]

A lot less. Which would make my point even stronger. If a car made some years ago, using a conventional engine, can match the performance of the fancy-dancy expensive hybrid, is it not within our ability to make every car engine more efficient? Right now?

And for the love of Christ why aren't automakers doing it? Don't they understand they'll sell more cars?

I agree with you. My dad was convinced during the so-called gas shortages of the 70's, that the technology was avalable to have an engine that could get more than 50 MPH. He said it was being quelched because of the relationship between big oil and the automakers. It would not shock me if an engine could be placed in a SUV that could get 30 plus.

[hansolo]

I agree with you. My dad was convinced during the so-called gas shortages of the 70's, that the technology was avalable to have an engine that could get more than 50 MPH. He said it was being quelched because of the relationship between big oil and the automakers. It would not shock me if an engine could be placed in a SUV that could get 30 plus.

Yeah I agree. I'm tired of driving around up to 45 MPH. Dammit I want to go faster.



Seriously even Volkswagen built a car that could go 200mpg. Granted it's a concept car but now they are thinking about actually producing it.

http://jalopnik.com/cars/news/volksw...ect-252734.php

The only way for Ford, GM etc to finally change their mindset about producing good reliable fuel-efficient cars is for them to keep losing money and sales like they are doing now with their SUVs and trucks.

Will take a while though.

[TTB]

A lot less. Which would make my point even stronger. If a car made some years ago, using a conventional engine, can match the performance of the fancy-dancy expensive hybrid, is it not within our ability to make every car engine more efficient? Right now?

And for the love of Christ why aren't automakers doing it? Don't they understand they'll sell more cars?

Were there not quality issues with the Metro? I think people have more trust in Toyota for quality and then there is the whole cultural bias going on with saying one 'drives a hybrid'. I agree..the main is just use less gas...way less.

No doubt that the American car manufactuers have been immensely short sighted. I suppose there margins are better on the bigger more expensive cars and they led their comeback but they should have read the writing on the wall a couple years ago as its been over two years since I got rid of my SUV gas when reached $3/gallon.

[kah]

I have no idea how good a car the Metro was. The point is MPG. We can, and should, be doing better.

[TTB]

It will drive me insane...but I agree we should go back to the 55 mph speed limit as well.

Whatever happened to Sunuvanun? 55 mph probably would have driven him crazy.