That was one of the stupidest moves that you could make. What are you going to do when gas hits $6 or $8 a gallon besides hit yourself for being so foolish?

I have to agree that you didn’t think things through very well. The SUV won’t keep its value nearly as well as the Honda so when it’s time to sell, you’ll lose a great deal on the depreciation of the SUV. That will wipe out any savings you may have received from the $5000 you made meaning that all the extra money you pay for gas is wasted money.

I too agree with your thinking. I have a SUV as well, but only drive 1 mile to work..thats both ways. I am unable to walk due to light disability. But we also have boat. Makes sense for me to have SUV. If If my employer was far away, I would not keep the SUV though.

We’re getting a truck this summer too- and I’m not looking forward to paying for gas, but it will be a third vehicle and will serve many of the same purposes you listed.

So, it’s a hard sell, but I understand.

@ gene

You are correct that if gas goes up in price long term that it would not be a good deal. While gas will probably rise in the short term, I don’t believe that gas will stay high in the long term. Most of the current price in gas is speculation and due to inflation of the dollar. I believe both of those will be taken care and gas prices will eventually settle below $4.

This is a guess on my part, as nobody knows exactly what will happen. The fact that there is no oil shortage causing the current rise in price tells me that it is other factors keeping it high that will eventually resolve them self and bring the bubble down.

@ chandler

I have to respectfully disagree here. While it may seem that a fuel efficient car would keep it’s value better, the fact that I already got the SUV at such a bargain price means that most of the depreciation has already been taken out while hardly any depreciation was taken out of the Honda. I believe I will be able to sell the SUV at a price closer to what I bought it at than I would be able to sell the Honda in another 5 years.

Its good that you took the time and thought it through. You got a vehicle that fit you and your family’s needs. Going against the crowd isn’t always easy but can pay off. I would be interested in a followup in a year or so to see if it works as you planned and if you are still happy with your choice.

As I see it, that you have a boat you might pull with it on weekends is your only valid reason for buying the SUV.

I understand you got a good deal on the SUV and got a good price for your Honda. But it sounds to me like you just wanted an SUV and are trying to justify the purchase.

I say this because I drive a 2006 minivan, but we just bought an older (1997) Ford Aspire for my routine around-town driving. We’ll be using the van only when necessary, to pull our camper or when we need more space than the Aspire offers.

Hubby drives a truck for work, so the minivan will become a mostly idle third vehicle. We should probably sell it now. But the truth of the matter is, we love it and just don’t want to get rid of it yet.

Congrats on the shock factor !! Don’t think you’ll find many blogs advocating buying SUVs !!

I personally don’t agree with your line of thinking. Your SUV will cost you more on fuel – simply because it uses more. Hondas are ultra-reliable – is your SUV ? How cheap are they to repair ? Are the tyres more expensive than on a Honda ?

If I was a millionaire, sure I’d buy a fabulous big beast of a car. However, if you are interested in saving money/spending cautiously then the only way you can justify buying a SUV is if you have too many children to fit into a normal family car in my opinion.

But then, it’s your money – and you’ll free to prioritize your spending as your wish.

It’s sinful to drive a SUV. Don’t be surprised if you see some middle fingers for no reason.

All SUVs should be sent to a trash dump, basically.

Unless you paid $3000 total for your car, there’s still depreciation left in the value.
I wouldn’t be surprised to find out that the net resources used and pollution produced by saving an old car from the crusher is much less than what it takes to manufacture a new car.
I’m an advocate of saving old things and conserving dollars as much as anything else. I drive a 1995 Cadillac that I paid $2700 for, and I’m sure that it’s going to take me a lot of miles to equal the cost of depreciation that you’d see on a newer car.
Now, if you have never opened the hood of your car or even were curious about fixing some problem for yourself, then it won’t work for you. But I am a big fan of trying to figure things out on my own, and so far, it’s worked out great.

This one is sure to get alot of comments. While I can’t say that I would do the same thing, I sort of see your point. I just bought an SUV about 2.5 years ago and I sincerely regret it.

One question that I don’t think was covered – how big is your family?

I think this shows the importance of not listening to conventional wisdom when it comes to personal finances and running the numbers for your particular situation. People make a lot of assumptions from what they hear, but since everyone’s situation is different, there is no one right and one wrong answer for everyone. What is right for me is not necessarily right for another person.

@Shane – As someone who used to work for a small auto service station throughout high school, I can assure you that the myth that foreign gas miserly cars are cheaper to fix than domestic SUV’s is complete BS.

Part for part, Honda’s and Hyundai’s parts are double and sometimes triple what Ford and Chevy SUV parts are (simple supply and demand).

As for tires, same notion usually applies. My SO had a Hyundai Tiburon when we met and it needed tires. Due to the odd-ball size most foreign cars use, the price to put 4 new tires on her car was $200 more than the price to put 4 new tires on my truck. (another supply and demand example – common easy to get parts are always cheaper than their exotic equivalents.)

Drive what you want because it fits your lifestyle and your budget. What works for you may not work for others but it really irks me when some people get all high and mighty about SUV’s because they drive a hybrid. In my mind that is the same as someone causing a flame war over what brand of clothes one wears.

Having an SUV by itself isn’t necessarily a bad thing – I drive one and as long as I keep the mileage down I have only good things to say about the car. The extra space is worth the price for me though I would like lower monthly payments trading in for something smaller might also not get me anything in the long run.

@ SingleGuyMoney

There are four in my family. I have two small girls. The accord was big enough, but I think the SUV will help out as they get older.

@ shane

I addressed that fuel will cost more. I have assumed that repairs over the next five years will be about the same as the SUV is newer than the Honda was, I don’t think I will run into problems. Again, since I don’t drive it a lot, that becomes less of an issue since I’m not putting a lot of wear and tear on the vehicle.

My only question is, what kind of car is your other vehicle? If your family already has another fuel efficient car, the SUV can just sit as the price of the raw materials go up. The SUV is a good buy only if you use it for towing the boat and transporting large goods. The SUV only becomes inefficient when you drive it with just one or two passengers. Also kudos with the biking. I assume you live somewhere where it isn’t snowing or raining 9 months of the year.

You fail to mention the increased insurance premiums for an SUV over a small car.

“This is a guess on my part, as nobody knows exactly what will happen. The fact that there is no oil shortage causing the current rise in price tells me that it is other factors keeping it high that will eventually resolve them self and bring the bubble down.”

Except that we’ve burned through about half of the recoverable world supply of oil, and oil production has peaked. Even T. Boone Pickens knows this. Prices are high and there are no lines because there is a little elasticity in demand. Oil companies would rather charge $4.00 a gallon and sell a little less than they could, than sell themselves out of product at $3.50 and create a shortage.

You have it exactly wrong. Short term there may be a small price collapse. Long term the trend is going to be nothing but up. Think $4 a gallon is bad? Wait for $10.

Or you could have sold the accord and bought an awesome bike and put away the rest of the money!

Why I drive an SUV (97 Landcruiser to be specific)…….

• I bought the truck outright years ago. Even then I got it for $5k under BB at THAT time. I have NO payment. Never have.
• Its a Landcruiser, its a tank. I could throw a grenade under it and it will still go. I could pour Wild Turkey in the tank and it would probably still drive.
• Everything that can go wrong with it I can easily fix myself, with hand tools, in my garage. My annual upkeep on this has been less than $1000/yr.
• It gets 14MPG (city)…but I only drive about 5 miles a day if that, I work from home.
• My insurance for it is less than half what our Audi was. In SoCAL I pay less than $125/mo.
• When we vacation travel, we tend to have 8 people in the truck. Can’t do that with a Civic.
• Can enjoy it in several feet of snow mud and sand. Its NOT single purpose.
• I can haul tons of stuff with it.
• Although I am not a first responder, I use it to jump start people (dual batteries) I use it to tow people, I use it to help people fill up their tires (On Board Air)
• My annual SUV costs including gas has always been less then every single one of my friend’s/family’s green grocery getter, especially consider insurance, payment, taxes and maintenance.

Those are some of the most lunatic comments I’ve read in a long time. I can only conclude that most of them are jokes.

Good job on your purchase. Although I wouldn’t say you’re ‘benefiting’ the environment for purchasing a gas guzzler. “It’s much better that someone who doesn’t drive a lot owns a SUV than someone who does.” But it’s even better if people who do not drive a lot to own a smaller car.

It does make financial sense though. If you ever wanted a SUV, now is probably a great time to trade in your smaller car for one. With the election in November, it’s more than likely that gas prices will stabilize or come down.

Thanks for the post.

Great, well-reasoned article. Props for not just doing the default thing but actually looking at what made sense and what your situation called for. I’m sure car buying isn’t the only area where the occasional contrarian strategy could work quite well.

Good idea. My brother just did that same thing. He bought a big SUV that he has wanted for years, but would have probably never been able to buy. He has 5-kids and doesn’t drive very much, so it makes a lot of sense for him. The only way I can see this being a bad idea is if we have gas rationing.

Buying a car isn’t an investment. So poo poo to all the people that are saying your move is an un-wise investment. Kudos on the thoughtful article and ripping off the seller and buyers of your old and new cars!

Just a question…Is an SUV any worse than a large passenger car (eg. Cadillac, Chrysler 300, Chevy Impalla, etc.? I never hear anyone bashing them. Only SUV owners.
Just a thought.

Your decision isn’t financially sound and I believe it was made more because you were itching to make some kind of purchase and this fulfilled it. I’m guessing it will be six months before you have a navigation/dvd system in the truck to help you get to the lake, because you’ll need it for directions. Right? By the way, it’s not about financial sense that people try to make wise purchases – it is about conserving resources (and not just oil), but the fact that you have a boat that sits unused most of the time and the fact that you think cutting one trip to costco per month is a major cut in your travel shows you don’t understand that. If your Honda was underused then you should have thought about that more before you bought it. Trading it in for a truck isn’t helping anything. Had you sold the car to someone and used other means of travel, well then you’d have a case. Also, if you needed an incentive to cut your driving by making a major trade-in then you have no will power. I’m betting you don’t cut any of your driving after this trade-in. Your kind of saving advice is what got this country into so much trouble financially.

@ none

The SUV came with its own navigation system already so no need for me to purchase one. The boat was inherited from my father when he died. The Costco trip was one of several ways I said I believed that I will cut the number of miles I drive.

I never said that this was what everyone should do. I looked at my particular situation and found that it made financial sense for me. I believe that is what every person should do – look at their particular financial situation and do what is right for them.

Congratulations for doing what suits your situation. My wife and I bartered for a one owner 89 mercury Grand Marquis wagon. We have four children, little league etc. and it suits us perfectly, since we only use it when we need to(about 100 miles/month).

It only gets 20 MPG, but I can’t see a car payment of ANY amount offsetting the mileage gain by a newer import that would meet our needs, and it is in pristine condition.

besides, ours has wood paneling on the doors, where can you get that nowadays?:)

[...] Shugars of Saving Advice has a strange strange idea trading in a fuel efficient car for a “huge” SUV. She thinks it’s a good deal. Commentors aren’t so [...]

Wow! So much negativity! I wouldn’t be so quick to say it was a bad move. We did this about 2 years ago. Sold a 4-cyl car, and bought a 6-cyl, full-size truck. It’s worked out great for us.

>One car sits in the driveway most of the time (the truck). Fuel mileage is irrelevant when it’s not running.

>We don’t have to borrow/rent trucks for hauling, which is great because we do need a truck on a regular basis.

>Book value aside, what is a vehicle worth if it doesn’t do what you need?

>Our other car gets great mileage, so when we need to go somewhere, it gets driven.

>The big secret is that gas prices aren’t killing the average American. Debt is. Out-of-control spending is. Lack of a budget is. These gas prices are not the end of the world.

Actually, it may not be a bad time to sell our pick-up and look at trading up.

I know each person has to do what they must for their situation.

I am now biking 4 miles to work. 1. I get about 15-20 minutes of exercise. 2. It’s cheaper than spending almost the same about of time in a car at lights, drive-thru windows (which I think are a terrible energy waste). 3. I like to think I’m doing my part to reduce oil consumption.

I don’t think it’s just the cost to our pocket regarding SUVs and bigger than necessary vehicles. They use much more oil than a smaller car.

I kinda agree with him, the best part of my SUV is “Paid For”. It has over 100000 miles on its engine, never gives a moments grief. I think the “paid for” part of the car justifies its gas usage. If your car isn’t paid for it is hard to justify the gas costs in addition to the car mortgage.

When I first read the title, my first thought was, “What an idiot…”

But after reading through the entire article, actually paying attention to what was written, and keeping an open mind to another viewpoint, I can honestly see how this choice could be the correct one for the author.

I’m far from being perfect, but after reading the comments posted,
it appears that quite a few people need to learn to be a little open-minded and alot less judgemental of others.
hout wanting to sound condescending or anything, but it would be nice if pe

First thought: Could you have gotten a good fuel-efficient car for less than your discount SUV?

The answer is more than likely yes. So really, I don’t see why saving money on the SUV is a big deal. If it actually cost significantly less than all the other available and more fuel efficient cars (we’re not talking about awesome efficiency, just better) in your general area do…but you haven’t really demonstrated that. So I remain unconvinced. Sorry.

Plus, Angie has an excellent point that if you aren’t going to be using it much anyway, it’s even better for the environment if you’re driving a small car.

I purchased a brand new 2007 Toyoto Prius in 2006.

The gas mileage ISN’T what Toyota promised.

The battery died TWICE in the first year leaving me stranded far from home. They told me to use my Triple A coverage. I told them to come get the car or the newspapers would get a story. They pick it up.

Another unfortunate consequence when the battery dies is that ALL of the doors automatically UNLOCK. Leaving my valuables vulnerable to thieves.

Do yourself a favor and get a REGULAR small car until Toyota works out the bugs.

I drove a Chevy Metro that got better gas mileage than this.

I don’t think your idea is that far fetched. CNN had an article similar a week or so ago. It def seems like you thought out your decision which is the most important thing. I don’t think gas is gonna hit $6 or $8 per gallon. Yes you never know though. People are paying full price for fuel efficient cars and you can save thousands right now on a SUV. If you don’t drive that much i agree it can be a good economic move. Saying how you’re helping the environment might be pushing it, but I like your reasoning behind everything else.

This is a response to lisa in post 26 about the fuel economy of the impala. I have an 03 impala in which i achieve mid 20’s in town and 32 on the highway. Thats why you havent heard anybody bashing them.