Think Before Downsizing Your SUV
A nationwide sell-off of gas guzzlers is under way. Many people have already sold their gas hogs in order to downsize. Many others would like to, if they could only find a buyer. A quick check of AutoTrader.com shows a marketplace flooded with big vehicles.
Consumer advocates are urging anxious car owners to slow down and do the math before they race to get rid of that larger vehicle. After crunching all the numbers, Consumer Reports concludes it rarely pays to downsize if you’ve only owned the vehicle for three years or less.
Downsizing is something that should be based on the numbers and not emotion. You might find out that it makes more economic sense to keep your low-mileage car and feel the pain at the pump each fill-up, rather than absorb a huge loss by selling an unpopular vehicle. If there’s more than one vehicle in the family, you might want to swap cars. The most fuel-efficient one goes to the person who drives the farthest. Several people at my office have already done this and it makes a difference.
If you’re shopping for a smaller car, see if it requires premium gasoline, which is averaging about 40 cents a gallon more than regular right now. The Mini Cooper, Volkswagen Passat, Mazda3 Grand Touring hatchback, Nissan Maxima and Nissan Altima V6 all take premium. Even Smart’s little Fortwo is recommended to run on premium.
By the way, if you need a large and roomy vehicle, there has never been a better time to buy. The selection is huge, prices are low, and dealers are willing to negotiate. And because of early trade-ins, many are new models with very low mileage.
