Gas prices

[glatt]

Originally Posted by TheMercenary

I heard a great rant by a financial planner the other day on the radio.

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.

[xoxoxoBruce]

But if your car dies and you choose a gas miser to replace it, you won't get to use your share of the oil before it runs out. Someone else will be getting your rightful share with no compensation to you.... maybe even a foreigner.

[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.