Buy a New Car for Better MPG even If I owe Money on Old gas Guzzler??

**disneysteve** · 02-09-2011, 01:31 PM

Why do you still owe 7K on an 8 year old car?

I bet a used Elantra would also get 40 mpg and cost considerably less than 18K. I'd search for a low mileage used model 2-3 years old. You are going to destroy any car you get driving 1,800 miles/month. Why take that huge depreciation hit on top of it?

**bm123** · 02-09-2011, 01:34 PM

I bought the Car used in 2006 for 28K.

I really want a new car with factory warranty because I am really bad at maintaining cars, i know nothing car related

I was thinking of getting a USED Prius, but they are still expensive. So I figured might as well get a new Car for the same Price.

**GREENBACK** · 02-09-2011, 02:33 PM

Originally posted by bm123 View Post

Hi,

I am thinking of trading my car for it, I hope they can pay it off and give me 1000 for it to put towards the new car. Sound like a good financial move??

Who is paying this off and giving you 1k? What am I missing? If it's the financing company, won't you still owe that. I don't finance vehicles very often so maybe I'm a little ignorant here.

**disneysteve** · 02-09-2011, 02:44 PM

Originally posted by bm123 View Post

I really want a new car with factory warranty because I am really bad at maintaining cars, i know nothing car related

A 2 year old Hyundai will still have 8 years left on the warranty.
A 3 year old Hyundai will still have 7 years left on the warranty.

Even if you had to pay for an extended warranty, which I wouldn't recommend, you would save so much by buying used that it would be worth it.

**bm123** · 02-09-2011, 02:46 PM

Another thing I wanted to point out is that the 2011 Elantra is completely redesign and I see it as a good looking car vs the 2010 and older Elantras which I don't find to be as attractive.

If I am going to buy a car, I would like it to be a good mix between practical, good MPG, and good styling.

**disneysteve** · 02-09-2011, 02:54 PM

Originally posted by bm123 View Post

Another thing I wanted to point out is that the 2011 Elantra is completely redesign and I see it as a good looking car vs the 2010 and older Elantras which I don't find to be as attractive.

Well now you are arguing a completely different issue that has absolutely nothing to do with gas mileage.

You chose to post this question to a financial forum. The answer to the financial question is no, it doesn't make sense to go out and buy a brand new car just to get better mileage. But I suspect you already knew that. If you are looking for people to agree with the decision you've probably already made in your mind, this may not be the right place.

Buying a brand new car is almost never a good decision financially speaking. There are many used cars that are better values, get great mileage and are still under warranty.

The fact that you still owe $7,000 on a car that you bought 5 years ago tells me that finances weren't involved in that decision either.

Rules of thumb for car buying are:
1. Pay cash if at all possible.
2. If not possible, take a loan for no more than 3 years with a payment of no more than 10% of your monthly income.

If you aren't doing 1 or 2, you are overspending.

**disneysteve** · 02-09-2011, 02:55 PM

Originally posted by bm123 View Post

Another thing I wanted to point out is that the 2011 Elantra is completely redesign

By the way, I would NEVER buy a car in the first year of a complete redesign. There are always problems that crop up that don't get corrected until the following year.

**bm123** · 02-09-2011, 03:08 PM

Thanks,

I will also consider a used 2009 Corolla (around 13K) 32 combined MPG.

I make more money now, so I can def. afford the car. I just despise wasting so much money on gas and I hate fixing old cars, which is why I want a newer, more fuel-efficient car.

I'll think about it over the weekend. Thanks.

**irmanator** · 02-09-2011, 03:22 PM

DS I get the feeling he is just tryin to justify a decision he already has his heart set on.

**LuckyRobin** · 02-09-2011, 03:31 PM

I have a 2009 Toyota Matrix, which is a Corolla with a hatchback instead of a trunk and I will tell you right now it does not get 32 mpg, regardless of what they say. It averages 25 mpg and that's with a lot of freeway driving, not much city. Our car is well-maintained so it isn't a question of not taking care of the car.

My in-laws have a 2008 Hyundai Elantra and they only average 32 miles to the gallon, not 40 like they were told. I think you really want to investigate what actual drivers say the mileage is and not what the companies say it is before you commit to buying anything for better gas mileage. I do agree that the 2011 is far prettier than the older models

, but that's neither here nor there.

In the long run, the price of a Prius does not save you money for more efficient gas use unless you keep it for over ten years because the up front costs are so high and it's got hard to get and expensive replacement parts. It is also not very comfortable and if you are driving a lot you will be miserable. Our neighbor has one and commutes 2 hours a day and she says it is the worst mistake she ever made. She bought it more to be enviro friendly than to save money, but it has not really saved her any money.

Just things to think about.

**elessar78** · 02-09-2011, 05:11 PM

Originally posted by disneysteve View Post

By the way, I would NEVER buy a car in the first year of a complete redesign. There are always problems that crop up that don't get corrected until the following year.

+1... I got burned on a Honda accord of all models! From major engine issues, to minor things that are more of a nuisance faulty power windows and doors.

It's paid off and despite the constant aggravation, I like not owing.

**bm123** · 02-09-2011, 07:32 PM

Hi,

I am now leaning towards a USED car.

I am looking at 2005-2007 Prius Under 60K in miles around 13K or less. It gets around 45 MPG so better than the new Elantra. Although it would cost ~7K more than my current car, it would equate to an extra year of paying for the car but I would end up with a new car with less mileage and better MPG.

**disneysteve** · 02-09-2011, 07:43 PM

I'm glad you've shifted your focus away from a new car. That said, I honestly don't know much about the Prius so I don't know if that's a good option for you or not. Perhaps others can weigh in. Actually, you'll probably get a better answer to that question at an auto forum. There is probably a Prius owner's forum around somewhere.

**MrPolarZero** · 02-09-2011, 08:18 PM

I think that would be quite a good idea. But you need to check first how much you can get out of the old car and see if it would be enough to shoulder the cost of the new one. Too bad, you didn't say the exact car brand so that we can assess its marketability.

Buy a New Car for Better MPG even If I owe Money on Old gas Guzzler??