Keep My SUV or Dump It

Question

Last year my dad bought me a 2002 Yukon, for my Birthday while I absolutely love my SUV I don't think I can afford to keep it. Because of gas prices.

However my car is paid for, all I pay is my monthly insurance which is $195. And the cars I am looking at cost around 12-15K, and since I will most likely get nothing trading it in I will go from having to pay a note and insurance plus gas.

At this time I am averaging $90 on gas a week sometimes more sometimes less.

Will I be better off getting a smaller car with a note insurance and gas or keeping my gas guzzler.

Answer 1

It depends on what a dealer will give you for your car trade in.  How many miles on your car?  If its over 80k good luck getting a penny of 7,000.  Then you'll buy a car for 12,000, pay sales tax of about 900 bucks and then 200 to register it.  Thats a 5000 dollar swing.  Assuming you go from getting 15 mpg to 25 mpg that will take you 3 years to get back to break even.  

My advice...keep the suv.  

Answer 2

Your spending $90 dollars a week and if you buy a car that gets twice the gas mileage you will be saving $45 dollars a week that is less than $200 a month you will be saving. Can you buy a 12-15k car for less than $200 dollars a month?  You are getting rid of a vehicle that is paid off only to go in debt with a car payment that will be more than the amount you will save in fuel each month.  Getting rid of a vehicle for gas mileage rarely makes sense. You maybe better off buying a good used car and selling your SUV privately.

Answer 3

I'd dump it. However, there are 2 sides to this. your vehicle is paid for, but on the other hand, it sounds like you can't afford to keep it on the road much longer. yeah, you won't get much for a trade-in, but you'd get a smaller car, more fuel efficient, and most likely worth the extra money, especially with the way things are now. you may actually end up saving money, for 2 reasons: gas will be cheaper, and you may not have to pay as much for insurance.  

Answer 4

I think the only way you can save some money is to sell the Yukon and get a used car for around the same you got for it. In other words, if you get 7k for it you have to get a used car that's around 7k. You can get some good gas savers for that money mostly small cars, which will be a big jump from a Yukon, but you don't want to get something that will take a while to see any benefit from.