Is it worth the trouble to sell my old car now and buy a hybrid or another car that gets better gas mileage? Iím getting mixed advice from my friends on this issue.
Hybrids are a really big deal now, arenít they? Lots of people want to get rid of their $10,000 cars
and buy these $25,000 cars so they can save on gas. Letís take a closer look at this.
So, youíre going to spend $15,000 extra
to save on gas. Did you ever think about how long it will take to get your money back? Letís say you go from averaging 15 miles per gallon to 25 miles per gallon, and you drive 100 miles each week. That will save you about $10 a week at recent, average gas prices. That means it would take almost 29 years to get your money back in this deal. Does this make sense to you? It sure doesnít to me!
Listen, Iím all about saving money on gas. But people have lost their minds if they think it makes sense to go $15,000 into debt
óor spend $15,000 cashóto save $10 a week on this kind of deal. The truth is that a lot of people who do this kind of thing arenít as worried about the environment or saving gas as they are about having that ďIím cool in a hybridĒ feeling.
Hybrids are a really new technology and that means theyíre going to improve rapidly. You donít want to buy a first generation hybrid and then have to go through the pain of trying to sell the thing five years from now. Talk about something thatís going to go down in value like a rock!
Now, if youíre driving an $8,000 car that absolutely drinks gas, and you want to sell it and buy some little $8,000 gas sipper, Iím fine with that. But donít use the gas argument to rationalize buying an expensive new car or even spending a dime more on a different car. Make a lateral move, or better yet a move down
in price, and youíll save money
from day one!