I own a Honda Pilot SUV 07 6 Cylinders 9000 mi, . Is it a good idea to trade it with a 4 cylinder 08 new car?

Question

I paid for the Honda SUV $22,500 last year. The trade in price today is $16500 since gazoline is too high and there is not too much demand for big cars. I'm afraid that if i"ll keep it more time it will depreciate more so I'd like to know if it is a reasonabe move or I should still keep the SUV.

The SUV is driven by my wife and she does approx. 25 or 30 miles a day. The car makes 18-20 miles per gallon so im considering replacing it with a 4 cylinder car with more miles per gallon like Honda Accord Sedan. I can add $2700 and get a new Honda Accord 08. Is it a good move or im making a mistake? Thanx.

Answer 1

Say you drive 10000 miles/year.  The SUV will use 500 gallons of gas * $4 = $2000.  The car will use 333 gallons of gas * $4 = $1332 for a total annual saving of $668.  

Analyzing these numbers, at today's gas prices and the assumed mileage above it will take 4 years to recover the hit you took on depreciation of the SUV.  Of course if your mileage is much higher or if gas prices rise, it won't take as long.

Answer 2

It gets better gas mileage than my mother's Mercedes sedan with 4WD. In fact, it gets better mileage than most SUVs of its size. If you need the size, keep the vehicle because it's great all-around. If you don't need to haul, tow, or carry a lot of people and things, take the hit and get something more efficient.

Answer 3

I would stick with the Pilot. More security and comfort.