Consider trading gas-guzzling SUVs
The following is a Counterpoint:
By Richard Mearns
Gas prices are on the rise again, and while price swings will continue, the long-term trend is nothing but up.
There are plenty of "villains" with their hands in the cookie jar, but the fact is the world's maximum productive capacity is fast reaching its peak (virtually every Western industrial nation already has and the Middle East is not far behind).
Soon, rising demand will outstrip world supply and $4 gas prices will be fondly remembered like the nickel candy bar.
Many Americans seem unable to accept or deal with this new paradigm and its straightforward solution: Reduce miles driven and/or switch to a higher-mileage car. While some are slowly and grudgingly coming to this realization, many still have one last defense: "I can't afford to trade my gas-guzzler for a more efficient vehicle, I'll lose too much money," or "I've already paid off my loan, I can't afford a new car."
If these are your excuses, consider this: If you own a big truck or SUV, it is depreciating rapidly (for example, a basic $31,000 Ford Expedition purchased in 2004 currently has a Kelley Blue Book "private sale value" of approximately $13,000). That $18,000 is gone forever. In fact, if gas prices continue to rise dramatically, the loss of the remaining $13,000 isn't far behind.
What can you do? Trade the Expedition for a fuel-efficient alternative. If you can see your way to a midsize (buy a trailer if you move big stuff occasionally), a Chevy Malibu of comparable age and mileage has a private sale value of $8,000.
If a large vehicle is really required, a comparable Dodge Grand Caravan also carries a private sale value in the $8,000 range. Such an exchange via private sales offers the opportunity to make money, and purchase from a used-car lot at least to break even.
Both the Chevy and the Caravan would be cheaper to maintain, depreciate less and yield significant gas savings. At 15,000 miles per year and $4 per gallon, the Malibu would save $1,328 a year and the Caravan $709. Coupled with less maintenance and depreciation, annual savings would likely be approximately $2,825 for the Malibu and $2,100 for the Caravan, or $235 and $175 per month respectively.
Is the SUV really that cool?
The writer lives in Greensboro.
Comments (7)
To report abuse of the comment feature on this site, please use the feedback form at the bottom of any page.
Complements of Roger Bennet, fellow bloger:
The new CAFE standards (December of 2007) allows "dual-fuel" E85 vehicles to count only the gasoline portion in the CAFE regulatory mpg calculations. 15% of gasoline is counted, 85% of ethanol is not counted.
That means a dual-fuel vehicle that gets 20 mpg can suddenly be called a 33 mpg CAFE standard vehicle, de facto never burning a bit of E85 and getting 20 mpg, which is likely since E85 is only available in about 1% of the stations nationwide.
Consider also the reduced energy content of E85 -"between 20% and 37% less than gasoline on a per-gallon basis" - so the vehicle getting 20 mpg on gasoline will only get 15 mpg on E85.
http://www.colorado.gov/dpa/dcs/fleet/docs/green/E85.pdf
Your FINE government at work.
Thanks Roger.
Posted on March 14, 2008 4:42 AM
Let us not forget the idea that the SUV market expansion garment is cut from the cloth of domestic automakers need to pay union-mandated expenses (eg jobs bank), and the easiest way to pay those expenses and still make money while hoping to prevent even more plants from closing is by using the real estate that small and efficient vehicles with little to no profit per unit occupy to sell inefficient vehicles with enormous profit margins instead.
Dislike CO2 and its influence on global warming? Thank a UAW member.
Roger
Posted on March 14, 2008 7:11 AM
Is it OK with you Richard if the people who still want to drive the SUVs, and can afford the gas, do so?
Posted on March 14, 2008 7:12 AM
"Is it OK with you Richard if the people who still want to drive the SUVs, and can afford the gas, do so?"
Don't know about Richard, but apparently some kooks don't want you to have the choice to drive an SUV Neo.
http://www.bansuvs.com/
You can even advertise your feelings publicly by wearing their T-Shirt:
S tupid
U nsafe
V ehicles
Yes it can be yours for only $17.99
We've met Richard half way in our household, my wife drives a Town & Country, which is ok with him.
It gets around 22 mpg.
Problem is passenger vehicles are no longer designed to pull heavier trailers, so a Malibu purchase would render my boat into a useless garage ornament. Sorry Richard I'll keep my SUV and yes, it is paid for.
Posted on March 14, 2008 9:31 AM
Let me guess, Richard is a liberal, and liberals are smarter than the rest of us, and just love to tell us how to live our lives, raise our children, what to eat and drink, what to drive and so on and so forth.
Richard, you couldn't give me an SUV, but for those who want, or need them that is their choice. I thought you liberals were for "choice." I also don't smoke, but for those who to choose to smoke, have at it. And for the "second hand" smoke, don't even go there unless you provide a death certificate with "SHS" as the COD.
Posted on March 14, 2008 10:14 AM
"but the fact is the world's maximum productive capacity is fast reaching its peak"
I'd like to know where he got that stat from. It may be true in the U.S. as we've not built a new refinery in decades.
Posted on March 14, 2008 11:06 AM
The Big Three automakers rely heavily on SUVs for a big chunk of their profits. If people stop buying SUVs, what happens to The Big Three?
Posted on March 14, 2008 1:28 PM