Buying a Gas-Sipper Worth Car Payment?

Question

Here's the situation. We own two cars, an old Taurus and even older pickup. Mileage is maybe 20mpg on both. We spend between $150-200 a month on gas, and only $75 on insurance. Is it worth buying a higher mpg car (28) and incurring higher insurance costs and taking on a monthly payment of $150-250 for the car, just to save in gas? The payments would be for 3-5 years, money we could be saving. What's everyones take on this?

Answer 1

Figure TOTAL money out-of-pocket per month.

Using your figures:

Older cars = $275 month  (gas + insurance)

New car = $475 month  (payment + gas + insurance).

You save on gas, but the new payment is more than the gas savings.

Answer 2

try selling one of the cars and buying something with better gas mileage. Civic, Camry, Metro, Cavalier, Sunfire...

Answer 3

Awesome calculator from edmunds.com!

http://www.edmunds.com/calculators/gas-g...

Answer 4

almost never pays to take on a car payment to "save " money.