Should I sell or trade-in my truck (16 mpg) for a used car that averages 26 mpg?

Question

I have a 2004 Chevy Silverado 1500 (loaded!) that averages 16 mpg. I wanna know if I'm better off trading it in on a used 2005 or newer Subaru Outback that averages 26mpg. I still owe 18,000.00. I drive 45 miles daily? This car will be with me for at least 5 years. I know the trade-in value has dropped out, but would it still be worth it in the long run?

Answer 1

i would subaru's are awsome

Answer 2

I would take a hard look at what you can actually sell your truck for.  More than likely you will not be able to get anywhere near 18K for it.  From there figure out how much you will be spending out of pocket for the new car and figure out if you will save that in gas.

Answer 3

Nope.  Keeping your current vehicle is always better from a financial perspective.

If you have negative equity in your truck you shouldn't even be considering trading it in.

Answer 4

Hold onto it.  You'll take a beating on the trade-in value.  Some dealers have stopped taking pick-ups and SUVs as trades because they can't get rid of them.  Also, I doubt the Subaru Outback will average 26 mpg.  Outbacks have AWD and normally get 2-3 mpg less then a comparable sized car.  The additional weight of the AWD drive system hurt fuel efficiency.  

Not unless you can afford to take the financial hit on the truck, just sit tight.

Answer 5

go for it...with gas prices man, save the money and the stress