Sell the gas guzzler? Do some math first (P.2 Portland Press Herald ME)

[jpak]

Sell the gas guzzler? Do some math first

http://pressherald.mainetoday.com/news/state/060529gassavings.shtml?survey79373

Victoria Wettergreen wasn't going to take it anymore. "Two hundred dollars a month for gas is uncalled for," she said.

But instead of getting mad - and poor - she went shopping. This spring, she bought an efficient Scion and happily unloaded her gas-chugging Ford Explorer. The family's monthly gasoline bill is now about $60. "I love this car," she said.

<snip>

"We're seeing a lot of people coming in with SUVs and pickups looking to downsize," said Chris Lamoureux, sales manager at Norm's Used Cars in Wiscasset. "They usually don't like the numbers. A lot of times they realize its cheaper for them to pay for the gas" than trade vehicles.

An SUV or pickup that's two or three years old may not be worth as much as its owner thinks, and in many cases is worth less than the balance remaining on the loan.

<more>

[DainBramaged]

1. It's called upside down

And it's because of all the rebates and low cost financing which pushed down the value of these vehicles prematurely ($5000 rebate means the car is worth $5000 less than the sticker, and translates instantly to it's remaining value at trade in) and simply because the vehicles are devalued because of the price of gas. Most people aren't forward thinking enough to believe their government lies, so they buy what they think they need, not what they really need.

For people with 2 or more kids, it becomes an issue too. No matter how much you try to explain to people to downsize, their perception is bigger is safer. But, 51% of America voted for Booshe too, so I guess e know why.

I'm sure this thread will draw the bashers and flamers of the "BIG SUV'S" and "American Junk" just like a dead rat draws flies. But what they won't concede is a truck like the new Honda only gets 24MPG so there isn't a place to go where a compromise is available.

[Karmakaze]

2. Now THAT is karma!

Buy a gas guzzler when gas is cheap - a few years later gas is very expensive but it will actually cost you MORE to sell your gas guzzler and buy a new efficient vehicle, because your gas guzzler guzzles depreciation as fast as it guzzles gas!

Still, THIS is what sound energy policy should be: Tax breaks to GIVE UP your gas gazzler, not to BUY one.

[DainBramaged]

3. Tax breaks to GIVE UP your gas gazzler-GREAT idea

[IronLionZion]

5. Then who gets the gas guzzlers?

you don't just dump it in the junkyard. You sell it to some poor unsuspecting shmuck.

My problem with SUVs is that they are a danger to everyone on the road and difficult to see around at the parking lot. The drivers foolishly think they are invincible.

[phantom power]

14. Eventually they'll end up being owned by the poor...

who can't afford to pick and choose cars.

And if the poor can't afford to run them, they'll end up being used as homes. I also imagine that there will be something like a "car finance collapse" analogous to the housing collapse predicted by many people. Massive defaults on auto loans. The lending banks will take a huge hit.

If fuel prices stabilize long enough, this might be a slower process with less disruption. Who can say?

[DainBramaged]

6. Doh

[jpak]

4. That's what I was thinking

A progressive tax credit for trading up in gas mileage - the bigger the savings, the bigger the tax credit.

A trade-in deal with a difference of 10 mpg would get you $2K, 15 mpg = $3K, 20 mpg = $4K, 30 mpg = a $5K credit.

Fill out a simple form (makes, models VINs etc) send it in with your 1040. Fill in tax credit line X...etc...get yo' money back.

Of course, Detroit and the GOP would fight this tooth and nail....

[DainBramaged]

7. So, do they get recycled? Shipped to the Arab countries? What?

[Dead_Parrot]

8. They'll be used as housing...

...for those whose McMansions go mouldy, or whose 100-year mortgage is called in. :)

[MazeRat7]

9. If there is a choice, they probably didn't need the beast to start with.

Down here in Texas, there are two kinds of SUV/Light Truck owners.... those that need 'em and those that don't.
I would venture to say that the vast majority of light truck owners need them and use them for the purpose they were designed. That is not to say I haven't seen a truck or two thats been dropped and/or tricked out for the purpose of looking "cool" :wtf: Why would you do that to a truck ? As for SUV owners... well the vast majority don't need them.

I say this because I also remember there was a time when owing a SUV was because you were "off-road" at least several weeks out of the year and everyone would laugh at you if your SUV was a 2x4 that pounded pavement everyday. How do they think it got the name Sport Utility Vehicle? If they were meant for trucking Buffy and her tuba to band practice they would have been called something else.... (though betting on whether Buffy can actually "blow" the tuba just might qualify as a sport for some) :) But I digress....

Anyway.. I have no sympathy for those "looking to downsize"... if thats the case then you didn't need it to start with fool. On the flip side, its the working folk I feel sorry for (contractors, landscapers, musicians, ranchers, farmers, etc). They need those trucks and "downsizing" is not an option. So no, I plan to keep my truck as I use the bed several times/week and its also a 4x4 that gets me away from the insanity and into the mountains 3-4 weeks/yr. (wow...dual purpose.. there's a thought) I'll pay the extra gas $$$ because there is nothing equivalent that can do the same job as will everyone else that uses these vehicles "as they were originally intended".

MZr7

[unschooler]

10. Repeat after me: I will NEVER buy a new car. I will NEVER buy a new car.

Now repeat again: I will NEVER finance a new car. I will NEVER finance a new car.

[silvertip]

11. Never buy new!

    Excellent advise! Why buy something that loses a good
portion of its value when you drive it off the lot?

[unschooler]

12. And welcome to DU, silvertip!

:hi:

[silvertip]

13. Happiness is!

     Thank You Kindly!