It’s just not worth it

Dear Dave,

Do you think I should get a new hybrid car to save money on gas? A lot of my friends have done this, and with the rise in gas and oil prices lately, they’re telling me I should, too. According to them, I’ll save a ton of money, especially since I have a bigger car and a longer drive to work. What are your thoughts?

Daneen

Dear Daneen,

I get lots of questions about these kinds of scenarios and how it plays into people’s budgets. Many folks wonder if it would be better to go out and get a new vehicle with better gas mileage. Well, do you really want to lose more money?

Let’s say you currently drive a vehicle worth $10,000 that gets 15 miles per gallon. There’s a $25,000 hybrid you’re thinking about buying that gets 25 miles per gallon. That’s a $15,000 price difference just to get 10 more miles a gallon. If you drive 100 miles a week, that’s about a $10 difference a week. That would be about $40 extra you’re spending a month in gas if you stuck with the current car. A monthly car payment is a whole lot more than that! In short, the math doesn’t work. You’d have to drive to the moon and back to make it worthwhile.

There are a lot smarter things you can do to cut down on your fuel bill. Have you thought about trading for something smaller? If you’re driving a gas guzzler, trade it in on another car worth no more than your current car’s selling price. This means better fuel efficiency without a car payment. Carpooling is an option, too, even if you split the driving just a few days a week.

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