How To Factor Gas Costs Into Car Purchases
Eileen Gunn | MainStreet.com
With gas prices settling in well above the $3.50-a-gallon level that Bill Ford has cited as the tipping point for American drivers, more and more people are trying smaller cars on for size, or at least trading in their sedan, SUV or minivan for a more fuel-sipping counterpart.
No surprise, there are more and more resources available online to help you find the auto that will suit your needs while saving you a chunk of change at the pump.
For example, Kelley Blue Book, that longtime resource for information on buying and selling cars, recently launched KBB Green, which is not perfect, but still a good starting point for information on eco-friendly developments in the auto industry.
The Web site offers forums here you can discuss the pros and cons of hybrids, and news articles about green technology advances and new fuel-efficient cars that are hitting the market. It also has a couple of tools that are handy, but could be handier.
One tool lets you compare the fuel efficiency of your car with one that you’re thinking of buying, which seems perfect for today’s gas-conscious consumers. But it lets you compare your car only to those from a list of vehicles that the KBB staff has selected for their fuel efficiency.
So, I couldn’t compare the Ford Focus I sold earlier this year to the Toyota Matrix that replaced it to see whether I’m saving as much in gas and emissions as I think I am.
Also, it’s just assumed you’ll be financing the car and paying it off over time, which is more expensive than buying it outright, and changes the critical calculation: How long before my gas savings outpaces what I lay out to buy a new car.
Another calculator lets you type in your weekly mileage, the cost of gas near you and the make of your car to find out how your monthly petrol tab compares with that of ten particularly fuel-efficient cars.
It’s a tool that has limited use, but its bar graph and little car icons drive home how monstrously extravagant it is to drive something like a GMC Yukon truck. If you drive 300 miles a week in it, and pay $4.25 at the pump, you pay $395 a month in gas, versus $251 for a Chevrolet Tahoe hybrid or $221 for a Toyota Highlander hybrid — or, to really go in the other direction, just under $149 for a Mini Cooper.
The American Council for an Energy Efficient Economy puts out lists of the 10 overall best and 10 worst autos, as well as a list of best-in-class. There is some crossover with KBB’s list. The Prius, of course, is on both, as are the Honda Civic, the Nissan Altima, Smart car and Mini Cooper.
These lists make for good quick hits, if you want to narrow your search to the most fuel-efficient cars overall or in a particular category.
But the Department of Energy provides a wider view of the auto market, listing mileage, greenhouse gas emissions, air pollution score and annual fuel costs for most cars on the market. And, it lets you search by class or car maker within a given model year (from 2000 through 2009).
While each of these round-ups is good for general comparison purposes, most rely on the mileage stats that the manufacturers generate, usually under the most ideal conditions.
Consumer Reports does its own road testing of popular cars, and its real-world mileage is usually a little less rosy than the auto makers’ numbers. For example, Consumer Reports says the Prius gets 34 miles per gallon in the city and 47 on the highway, where the DOE reports 48 and 45, respectively. Though, by any measure, the Prius’ efficiency is nothing to sneeze at.
A hard-core environmentalist or super-savvy saver would recommend skipping the new car and just parking your existing one in the garage while you hop a bike and take mass transit or carpool — and more people are doing that.
But if you can’t get by without four wheels and are in the market for something that’s more cost-efficient to run, you’ve got plenty of help these days in finding it.
August 9th, 2008 at 9:50 pm
I just got the below email titled “Should You Buy a Prius”:
Prius
42 mpg ~ 24K+ per news story article. (Edmunds.com says 2008= 21500-23770)
Cheapest Standard Prius $21500
EPA = 48/45 (City/Hwy)
Honda Civic Gas MANY styles!
Edmunds.com:
Coupe $14810-23060
Sedan $15010-29500
Cheapest Auto transmission is DX $15610 coupe or $15810 sedan
EPA = 25/36 (City/Hwy)
++++++++++++++++++++++++++++++++++++++++++++++++
Purchase price difference = $5890 (21500-15610)
If drive 12000 miles per year — city miles:
Prius uses 250 gallons gas @ $4 = $1000/year
Civic uses 480 gallons gas @ $4 = $1920/year
Save $920/year with Prius so, break even point is 6.4 YEARS!
If drive 12000 miles per year — Hwy miles:
Prius uses 267 gallons gas @ $4 = $1068/year
Civic uses 333 gallons gas @ $4 = $1332/year
Save $264/year with Prius so, break even point is 22.3 YEARS!
Real World — If Drive 12000 miles ½ city & ½ Hwy miles:
Prius EPA ~ 46.5, Civic EPA ~ 30.5
Prius uses 258 gallons gas @ $4 = $1032/year
Civic uses 393 gallons gas @ $4 = $1572/year
Save $540/year with Prius so, break even point is 10.9 YEARS!
Obviously, if one drives 24000 miles (twice as much) the break even point is ½ so, for 50:50 City: Hwy it would be 5.5 years. If buy more expensive Prius or more expensive Civic, the numbers change. Most people are NOT buying the lowest cost model for either car. Also, Prius is said to actually cost ~ $24,000 due to shortage & dealers mark it up. Plenty of Civics available. Bottom line is that a Prius will eventually save you some $$$ if you drive it many years.
From a financial viewpoint it is not a smart decision.
August 10th, 2008 at 8:29 pm
There’s a couple small issues with your logic.
Based on the price you used for the Civic, you are comparing a family sized sedan (the Prius) with a compact two door coupe (the civic). Just starting there you’re going to have a huge difference. The Prius’ interior size is comparable with a Camry or Accord, so start with that amount, not the Civic’s.
You’re using 12000 as the annual mileage. No one I know drives that little.
Thanks to the torque from the electric motor, the Prius is a lot of fun to drive and has good acceleration. It also has a lot more “bells and whistles” for the same price (additional air bags, backup camera)
When shopping for cars, I found that the insurance for the Prius was actually less than other comparable cars (including cheaper cars).
I own a Prius that I bought May 2007, and it’s actually worth more now than what I paid for it. I don’t see that happening with any other car.
The break-even point is actually much less, like under 3 years when you correct the logic. Not counting the fun-to-drive part.
Plus what other car can make you look like a pretentious liberal in one fell swoop?
January 23rd, 2009 at 10:50 am
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October 10th, 2009 at 12:04 am
Showing some love to this topic “new to this wordpress”. I defiantly agree with it also. If you really think about it than it all makes alot of sense