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

[cypher1]

This topic reminds me of my older co-workers always talking about better/newer fuel efficient cars to purchase, whether it was some Prius or new SUV hybrid. Instead of looking for a monthly $300+ car payment and concern for premium vs regular fuel, why not just own your car outright and deal with avg cost of ownership? At least thats what I used to tell them.
While I admit Hyundai has definitely stepped up improving parts/cars in the last 10 years, the name and reliability is still questionable IMO. Look up the value of one their cars 8 years old and see how it holds up with other similar classes/mileage.
As for the Prius or other hybrids, overrated for the initial cost. Don't get me wrong, any car that gets 40+ mpg is great. But there so many factors involved: the driver/habits, weight of car/passengers, highway/stop and go traffic, environment/roads, manual trans vs automatic, alignment/tires, etc. Also depending on where you live, extreme cold can have issues, at least in MN. Harder to start up, more common electronic/battery issues, just some factors to consider.
At the end of the day, you're the one driving/paying for it, so go with what YOU want and can afford.

[littleroc02us]

What is the car worth on KBB? Private sale. Then I can give you my assessment.

[disneysteve]

What is the car worth on KBB? Private sale. Then I can give you my assessment.

You really do need to run the numbers here.

What is the current car worth?
What is your current monthly payment and how many payments remain?
How much is gas in your area?
What would the new car cost?
How long would the new car last given the mileage you drive?
What is a real life mpg estimate (not what the company says)?
How much will you save on gas over the time you own the car?
How much will it cost you in the process?

It may work out cheaper or about even to keep your current car, get it paid off and keep driving it for a couple more years even with lower mpg. You've got 96K miles and drive about 21K/year so you should be able to get at least a couple more years out of this car.

[bjl584]

I own a 2005 Hyundai Elantra. Great car. Bought it new for $11,000 and 110K miles later I have had 0 problems. Mine gets about 34mpg.

The brand new ones have a new engine. A 1.8 straight 4 cylinder as opposed to what's in mine, a 2.0 straight 4. That's why the increase in fuel economy.

You would be able to drive one for years and years worry free, but you may want to consider a gently used one. Let someone else take the depreciation being that you still owe on your current vehicle. The body style on the Elantra was changed in 2006 and ran through 2010. Pretty good looking car. The ones you are looking at are sporty and just came out in 2011. The 06 through 10 ones have the 2.0, so you are looking at fuel economy in the mid 30's. One thing, the 5 year 60K bumper to bumper warranty is non-transferable when buying used, but you will still get the 10 year 100K engine and powertrain warranty.

[skydivingchic]

Regarding the maintenance on a car. Find a shop you can trust - ask around your friends/family/coworkers, try AAA, etc. I found a good shop near my house by looking at the AAA listings. The routine maintenance schedule should be in the owners manual or easily looked up online. Then just take it to the shop for the routine stuff or when there are unusual noises, etc and they'll let you know when there are other issues to be addressed. I don't know much about car maintenance and am completely uninterested in learning. But I do know how to check my fluid levels and I have a shop that has always treated me very well. They've never tried to upsell me like the Jiffy-Lube type places and they don't talk down to me because I'm a girl. My vehicle has 169,000 miles on it now and I fully expect to get 250,000 out of it before I get a new car.

Not knowing how to perform car maintenance is no excuse for not taking it to the shop and getting it serviced according to the manufacturer's recommended schedule. I would also point out that a warranty will do you absolutely no good if you haven't kept up with the routine maintenance. At 1800 miles/month you will burn through a 100,000 mile warranty in ~4.5 years.

[greenskeeper]

bm123 what kind of car do you have now? Most cars will still run ok even on regular gas. Might save you a little until you make a decision.

[Snodog]

Well I also have a 2003 which I bought in 2006 and it is currently worth about half what I paid for it. So assuming your car is worth ~$14000 and you can buy the new Elantra for ~$18000 this may be a decent move financially if you are able to save ~$130/month on fuel and probably less maintenance costs too.

Of course the best move financially may be to sell your current car and buy a 2 year old Yaris for $10000.

PS- I like the new Elantras too.

[bm123]

More Info..

Hi,

Seems people want more details so here it goes...

its 2003 BMW 530i, AT
The loan ends on 2/2012. So I either have 13 payments left of $540. and My car says I get 21.5 MPG on the dashboard and I only use premium. I have tried using the regular gas, but the car doesnt run as great and sometimes it seems like it struggles a bit.

With my new commute, I drive around 70 miles a day Roundtrip. I also drive to the gym regularly and use my car for errands and stuff. Also, I love in Southern California, so I HAVE TO DRIVE everywhere. At current gas prices ( 3.60 a gal), I am spending around 325 a month in gas.

The condition of the car is "fair". Some dents and scratches, but KBB says it is worth around 11K. I currently owe 7,100.

I am now looking for a used Prius. Around 2005, with less than 60K miles. It gets around 45 MPG and the ones I am eyeing are around 13K.

What would u do? Continue with the BMW, or trade it in for a used Prius?

Thanks.

[disneysteve]

KBB says it is worth around 11K. I currently owe 7,100.

I am now looking for a used Prius. Around 2005, with less than 60K miles. It gets around 45 MPG and the ones I am eyeing are around 13K.

What would u do? Continue with the BMW, or trade it in for a used Prius?

I wouldn't do either.

I would sell the BMW privately for about 11K. Pay off the loan and pocket about 4K profit. Then buy a less used car, perhaps 2007 or 2008, for about the same price you are going to pay for the 2005 Prius. That will get you a car with only 35-40K miles instead of 60K. You drive over 21,000 miles per year. Buying a car with 60K already is just going to speed up when you need to replace that one.

What would I buy instead? I'm not entirely sure as I'm not a car guy. I would do some research at Edmunds and KBB sites to see what used cars in the 2007-08 model years ranked high for fuel efficiency and would fall in your price range and then I'd decide from there after searching Autotrader and seeing what was available in my area.

[Snodog]

Hi,

What would u do? Continue with the BMW, or trade it in for a used Prius?

If those are my only 2 choices I'de definitely go with the Prius. That being said I'm not a huge fan of the Prius but I'll admit I haven't really looked at them closely. I do know that at some point you may have to get new batteries which cost thousands of dollars. If you drive mostly hiway miles a hybrid may not get that much better MPG than a normal car like the Corolla or Yaris or Elantra. You will have to decide if the extra cost of the Prius is worthwhile.

[kork13]

If you drive mostly hiway miles a hybrid may not get that much better MPG than a normal car like the Corolla or Yaris or Elantra.

+1. Hybrid cars are designed to save gas in stop-and-go city driving. If you do the majority of your miles on the highway (60 of your daily 70 miles), then you're not going to do much better with a hybrid than you would with a regular, economical, compact car.

[bjl584]

+1. Hybrid cars are designed to save gas in stop-and-go city driving. If you do the majority of your miles on the highway (60 of your daily 70 miles), then you're not going to do much better with a hybrid than you would with a regular, economical, compact car.

Agreed. Hybrids will shine in city driving conditions (stop and go traffic under 35 mph.) However, on the highway they will do no better than a typical gasoline 4 cylinder engine. Actually, they will probably do worse because the gas engine on a hybrid is typically small and under powered, meaning it has to work harder at higher speeds, and performance while trying to pass or climb steep grades will be disappointing.

[littleroc02us]

I would sell the BMW for 11k and pay off the loan of 7k leaving you 4k. Put 4k towards the prius and you will owe 9k. What I found out through the boring math part was that in 13 months you would come out with an additional expense of around $9k and still have the bad milaege problem with the BMW, when it would be better to owe 9k that you could pay off on a used Prius with better gas milaege.

[cypher1]

I do know that at some point you may have to get new batteries which cost thousands of dollars.

That is correct. It's a nickel-metal hydride battery that's mounted behind the backseat typically. Batt goes for $2-3000, but they're supposed to last up to 100000 miles. Recently my friends and I were checking out the new Honda CRZ at dealership while picking up a part. Not impressed with the numbers. Car starts at 19k for a hybrid, gets 35/39 allegedly. My 13 yr old civic hatch got 33/37 avg while worth 3500. Although I wouldn't buy, I do like the look of the newer Camrys.

If you have an EF, I'd pay off the car, sell privately as is, hopefully get around 11ish. Take the difference (around 4k?), and if you can spare to add 1 or 2k, find something used for 6k, while paying yourself those existing monthly car payments. As others said, have a trusty mechanic check out used car. But if you're really determined to go new and have payments, its your decision.

[cypher1]

I probably should've read these posts before responding. Littleroc02us says it better