We have a 2004 V-6 Accord. It’s a rocket and 20 mpg is the maximum fuel efficiency for mixed driving, even when you drive like you have an egg under your right foot. 260 horses under that hood!

One easy way to analyze such a purchase for others who might be thinking of doing this is to purchase a more fuel efficient car of the same value and model year. That takes the depreciation, sale tax, maintenance, etc., out of the equation and you can see what the real savings might be.

Also – the other point people didn’t mention was that the .9% financing is paid for in OTHER ways. (I used to do financial calculations for multi-million dollar deals – interest free just meant the price is higher, frankly). There is nothing free – you just can’t see how you are paying for it if the APR is .9%.

We Americans tend to over react at times. I am for waiting it out to see if the current gas situation blows over. It always has in the past. If it doesn’t, to put it mildly, our country and it’s economy will be in desperate shape.

I drive a 2001 Crown Vic 24 hwy 16 city, its paid for and in great condition. If I trade it I won’t get fair market price right now.

One thing you did not factor in is that as gas rises people cut back more which will hopefully stabilize gas prices.

Another factor is people are fed up with being cheated at the pump and will retaliate in some way especially at election time. Our politicians are slowly becoming aware of this. Like many of us, I do not plan to vote for any incumbant.

Lets see what happens.

J.

Of course, I only bought new car because my 92 Ford Taurus finally died (i.e.: needed almost $5k in repairs just to run) and was getting about 19 MPG. I still do miss that car, though, but my car payment per year is about what I was paying per year to keep my old Ford running.

Since her Aviator is paid for, I will subtract the financing. If she buys the Accord, she has $11,000 for the Aviator, lowering her financing. Since edmunds doesn’t take that into account, let’s just assume she puts it into a high yield savings (money market) account at 3% (ING, etc.) and converts it to $12,380. I am also guessing edmunds’ financing numbers are higher than the 0.9% promotion, but it’s for 24-36 months, so we’ll ignore this. According to edmunds then, here is how both scenarios would play out:

2003 Aviator Luxury Rwd 4dr SUV:
-Begins with $11,000 vehicle
-Spends $50,112 the next 5 years on gas, maintenance, etc.
-Ends with $4,316 vehicle
-Total cost: 50,112 – 4,316 = $45,796

2008 Honda Accord EX V-6 Sedan:
-Sells Aviator for $11,000
-Buys $26,180 vehicle
-Spends $45,294 the next 5 years on financing, gas, maintenance, etc.
-Ends with $13,000 vehicle plus $12,380 cash.
-Total cost: 45,294 – 13,000 – 12,380 = $19,914

So the Accord ends up costing $25,882 less over 5 years, or $431 per month. Ignoring inflation & price fluctuations, with this money she can now buy a brand new Accord with no financing. If she doesn’t sell, she now has a 5 year old reliable car instead of a 10 year old unreliable car and will continue saving.

* I wrote this quickly, so there might be errors, but you get the point.

GAS Saving Tips

1- Keep Your Car Well Tuned
2- Keep Tires Properly Inflated
3- Plan Your Trip Ahead of Time

As much as people grumble about gas prices, they have not changed their driving habits.

Dzo