Gas prices

[TheMercenary]

Originally Posted by glatt

If he said that it makes no sense to sell your current car and buy a new one just because the price of gas went up ten cents, then I agree with him.

However, if he said that when your old car dies, and it's time to buy a new car, you shouldn't consider fuel efficiency as part of the over-all decision, then he's a moron.

Not really a moron. Not if the new car you can afford is equal to the efficiency of the car you lost. I think his point was it really has more to do with what you do with your car than some group of idiots preaching to everyone about your need to get a expensive car that gets 10 more miles per gallon. Not really all that important from a personal financial standpoint. I would have to agree.

[HungLikeJesus]

Originally Posted by TheMercenary

Not really a moron. Not if the new car you can afford is equal to the efficiency of the car you lost. I think his point was it really has more to do with what you do with your car than some group of idiots preaching to everyone about your need to get a expensive car that gets 10 more miles per gallon. Not really all that important from a personal financial standpoint. I would have to agree.

Let's say you drive 15,000 miles per year and your old car gets 15 miles per gallon. If you replace it with a car that gets 30 mpg (still pretty modest) you'll save 500 gallons of gas per year. At the current gas price that's $1,500 per year. What else can you do to save so much so easily?

I thought the role of financial planners was to encourage you to save money.

[TheMercenary]

Originally Posted by HLJ

Let's say you drive 15,000 miles per year and your old car gets 15 miles per gallon. If you replace it with a car that gets 30 mpg (still pretty modest) you'll save 500 gallons of gas per year. At the current gas price that's $1,500 per year. What else can you do to save so much so easily?

I thought the role of financial planners was to encourage you to save money.

How do you save money if you sell a car you own, an older car, and buy a new car? Pick a number... either way you are now paying a car payment, what if it was only $200 per month {pretty damm low}, that is $2200 a year more in expense. If you can afford a really new car you would be paying more like $400 or $600 a year which would be $4800 or 7200 a year.

[HungLikeJesus]

Originally Posted by TheMercenary

How do you save money if you sell a car you own, an older car, and buy a new car? Pick a number... either way you are now paying a car payment, what if it was only $200 per month {pretty damm low}, that is $2200 a year more in expense. If you can afford a really new car you would be paying more like $400 or $600 a year which would be $4800 or 7200 a year.

Sorry TM, I wasn't clear. This was for the case where you're ready to replace your car anyway.

Before I bought my Honda Insight, in 2003, I did the whole economic analysis and determined that the economics wouldn't be favorable unless gas went to $5/gallon. I bought the car anyway. Of course, after the car is paid off in a few months, I'll be saving quite a bit, compared to the Ford Ranger that used to be my primary vehicle.