sell gas guzzler for more efficient car?

[chuckN]

My wife and I are both teachers. We have two boys, one 13 and one 10. My wife has a 2002 Toyota Sequoia which is a guzzler at 14mpg. I have a full size truck which gets around the same. Our gas bill together is well over $400.00 per month.

The Sequoia has no payments. Considering that in approximately two years we will have to have a car for my oldest son, we were thinking of trying to sell the Sequoia for a used more efficient car. Perhaps one to turn over to our son in two years or perhaps one which will save enough money on gas to help buy one in two years.

There is no way not to continue to lose money. the Sequoia is worth more than I can sell or trade it in for, but I will just keep throwing massive amounts of money in the tank by driving it. Would I be wise to try to sell it for what I can get for it and purchase a Toyota or Honda with much better gas mileage and a history of dependability for hundreds or thousands of miles?

Any advice is appreciated.

Chuck

[disneysteve]

The Sequoia has no payments.

the Sequoia is worth more than I can sell or trade it in for

Was that a typo? How can it be worth more than you can sell it for? It is only worth whatever you can get for it.

I normally don't recommend getting a new car just to save on gas but since you own it outright, if you make an even swap, that will save you money. If the Sequoia is worth $10,000, for example, and you use that $10,000 (minus any taxes or transfer fees) to buy another car with better mileage, you will come out ahead in the long run. Just don't use this as an excuse to upgrade or spend more money because that would defeat the purpose.

[cschin4]

Run the numbers. How many miles per year are you driving? If you are driving 10,000 miles per year at 14 mgp, how may gallons of gas is that x $4? I know, i just don't feel like doing the math right now. But, run REAL numbers then decide. Otherwise it is just a fuzzy emotional decision. And, not sure why you feel your 13 is going to need his own car. Not necessarily a good idea for a teen to have unlimited access to their own car. You might want to rethink that one.
My Sienna only gets 17 mpg. But, i only drive about 10,000 miles a year or less. It would be nonsensical to trade it to "save on gas". It would cost much more to buy another car and for some reason, people don't want to see that it will take them 5 yrs just to break even or that buying another car is really going to cost them more as sellers inflate the real mpg you are going to get.

[Ronin]

If you own the car out right the cost of ownership will be less than buying a new car with a payment you have to make. I wouldn't upgrade just for better gas mileage.. if the car is breaking down and too much to maintain, than perhaps... but not just for the mileage.

[mcfroggin]

This is an argument I routinely have with myself. Larger vehicles do require more gas, but at the same time they are also safer. Friends of mine argue that small cars have great crash ratings too, but physics will prove larger cars to be safer every time. Its impossible for car companies to simulate crash tests against every other type of vehicle, so they all use a solid wall or similar. That's not real life. Compare a F-250 impacting an Accord vs a Sequoia. I guarantee I'd rather be driving the Sequoia when hit at 50 mph.

Obviously the smaller car would be more economical on a month to month basis, but what price can you put on safety?

[SteveBlissLaw]

IMO you should go with the more efficient fuel. Gas prices are not going back down

[Like2Plan]

Chuck,
It depends on the cost of the replacement vehicle and how many miles you are driving the 2002 Toyota Sequoia....
If it is a one for one trade, then it seems like a no brainer (provided the replacement vehicle meets your family's requirements for transportation--ex. do you use the Sequoia as your family transportation/family trips? Will the two boys fit in the backseat of the replacement vehicle? do you still need 4WD to get around where you live sometimes?)
If the replacement vehicle costs more, you will have to do a cost benefit analysis: the additional cost of the vehicle vs the amount of money saved on gas over the two year period--assuming you are going to get a third vehicle in two years either way.
The picture would look different if your wife only averages 800 miles a month vs 2,000 miles a month. I would do something like this: the Sequioa with 14mpg vs another car with a hypothetical 35mpg and plugging in $4.00/gal
(800 miles / 14mpg ) - (800 miles / 35pg) = 35 gal saved X 4.00/gal = 140.00/ month saved
(2,000miles/ 14 mpg)-(2,000 /35) = 86 gal saved X 4.00/gal = $342/month saved
If you multiply the amount you expect to save (based on your wife's driving habits) X 24 months--you can get an idea of where your break even point would be if you spent more on the replacement vehicle. It would only be an educated guess though--If gas goes higher or lower, the outcome will be different.

[Little House]

If the Sequoia is paid in full, I don't think I'd trade it in or sell it just for that reason alone either. What about the full sized truck? Is that paid in full, too? Do you still owe payments on it? Could you trade that one in for a more efficient vehicle at a similar price? I'd crunch the number and see how you could save more than the $400 / month on gas you're currently spending.

[snafu]

While I see the family practicality of a Sequoia, what is the focus for the truck? Do you live in a rural area and regularly need to drive off road? Do you haul material to school nearly daily? Is it a necessity for summer employment? Selling a truck privately can be financially advantageous when replaced with a small, 2 y/o Hyundai hatchback to commute to school in the fall.

[marvholly]

Who do you think is going to be dumb enough to buy your gas guzzler unless it is for pennies on the dollar. Maybe you can get $1000 to $2000 for what is a 9+ year old gas guzzling vehicle. A dealer will give you squat on a trade in too.

I have a 2007, low milage full size chevy that I could not even get that much for these days. Since I no longer highway drive every day I would be happy to get a really small car that gets 30-40 mpg but cannot take the hit on the chevy.

[landon.bruno]

Yeah that would be a more logical choice. If you check the current trend of increments in gas prices we would well pay over 50$ per liter in near future. Its better you get a car with good mileage. That makes sense!

[crazyskunk82]

I did trade in a truck averaging 12mph. The payment was 365 a month but gas was 600. Got a toyota corolla averaging 35mph, monthly payment of rolling 7,000 left on truck brought me to 432- but gas was only 200. So I saved 300 a month.

The downside is an extra year of payments.

[nick__45]

People shouldn't use big trucks or SUV for long commuting during this gas craze. However, the idea of trading a 2002 Toyota Sequoia for something small in the 2004-2006 Corolla/Civic or a 2002 Accord/Camry just to save on gas is quite absurd. That is the same as trading a big house for a small house just to save on electricity bills.

If you're fuel bill is only 400-500 dollars and you're driving two large vehicles then you don't really have much to complain and would be better off keeping them and drive less. Either that or get a small Corolla to commute while keeping the Sequoia for family events. I wouldn't want to cramp two teenage in anything less than a Accord or Camry with a V6 and would rather have a large SUV to do that.

Believe it or not, gas price will come down. It did in 2008 to about $1.5.

[sylviaB]

Sound good.