Getting killed at the pump

[woodworker26]

I'm averaging 700+ a month in gas. Although I have no debt other than a mortgage, I'm afraid of making a car purchase when my three fully-owned beaters (2005 Ford, 2003 CRV, 2000 Intrepid) are all paid for and will last another 3-5 years before replacement is needed.

The problem is that both my wife and I contribute to this - it's not just one car. And I have college bills soon to start and I am afraid of committing my liquidity to a vehicle.

My options:
1. Do nothing. Run these old cars to the ground.
2. Pick up a 3-5 year old Civic or Prius and place as much household miles onto that car as possible.
3. Negotiate a newer car (1-year old) while the price of gas is down and the value of these cars is down.

I really can't move closer to my employer, or car pool.

Any advice?

[kork13]

Maybe I missed it...why do you need a new car? Or do you want to solely in order to get a more economical car?

Also, do you need all three cars? If you have multiple drivers in the house, would it be possible to combine trips?

Personally, if you're not having any trouble with your current cars, I wouldn't try to replace them. Unless the difference in fuel economy is going to be a HUGE difference (i.e., going from a Ford F-250 to a Toyota Prius), it's probably not worth the trouble, or potentially even the cost of getting the replacement car.

How much do you currently spend on gas each month? If you got this new car, what would it (realistically) go down to? The difference between those two figures is what matters. If you lose even just $1,000 in lost value (or low sale price) on your current vehicles, or spent that much extra in getting the newer car, a difference of $20/mo in gas expenses is definitely not worth it -- your break-even payoff is in 50 months (~4 years)... Even for a $40/mo fuel savings, probably not worth it IMO.

[bjl584]

I'm averaging 700+ a month in gas. Although I have no debt other than a mortgage, I'm afraid of making a car purchase when my three fully-owned beaters (2005 Ford, 2003 CRV, 2000 Intrepid) are all paid for and will last another 3-5 years before replacement is needed.

The problem is that both my wife and I contribute to this - it's not just one car. And I have college bills soon to start and I am afraid of committing my liquidity to a vehicle.

My options:
1. Do nothing. Run these old cars to the ground.
2. Pick up a 3-5 year old Civic or Prius and place as much household miles onto that car as possible.
3. Negotiate a newer car (1-year old) while the price of gas is down and the value of these cars is down.

I really can't move closer to my employer, or car pool.

Any advice?

The first question that I have is, why do you need three cars? Do you have the option of selling one of them and just keeping the other two?

Do you have the option of keeping one, then selling two of them, then using the money from the sale of the two cars and using it to buy a more fuel efficient car?

[riverwed070707]

Sounds to me like the real problem is driving too much, not the cars themselves. An 05 Ford and 03 CRV are not what I'd call beaters.

Instead of trying to upgrade a car you're going to pound miles/wear and tear on, find ways to reduce your driving. Why are you putting so many miles on the car? Do you live in the country?

[MonkeyMama]

Personally, I'd do an even trade for a more fuel efficient vehicle, if it would help. (Though I would also be reluctant to trade in a perfectly good car for an unknown used car - any issues can easily wipe out any financial gains). But I would still do this before I Would think about a newer vehicle. Just a little outside the box - just because you need a different car (more fuel efficient) doesn't mean it should be more newer or should cost more.

As kork points out, I don't think the math is necessarily going to work much to your advantage.

[woodworker26]

Thanks to all for your advice...
I do live 15-20 minutes from anything. My commute is 70 miles round trip, wifes is 30 round trip and with one teenager driving and the other needing rides places - the miles add up.

The 3rd car is simply a time saver, it was virtually free and all that it does is prevent my wife and I from having to drive the teenagers around to their school events. Their miles are minimal though compared to the .

In my heart of hearts - I can't justify leaving these paid for cars that I maintain well for for the unknown of yet another vehicle to maintain.

Its just a tough pill to swallow - there's nothing to show for such a large expenditure (700/mth).

[snafu]

The depreciation cost of a 1 y/o car will likely negate any gas savings. How much is gas in your area? Gas here is $ 1.31 a litre which translates to $ 5. a gallon! Will you need to make payments on the newer car you wish to buy? How much will that add to your transportation costs per month? I suspect your costs for insurance and registration will also increase with a newer vehicle.

I suggest you and your wife examine your driving habits/routes and try to combine them with errands and events which may moderate the cost a bit. Have you reviewed your insurance with an eye to lowering premiums?