7 Reasons NOT to Trade in Your Gas Guzzler
Posted:
Wed Nov 26, 2008 10:33 amby topshop
Good advice or not?
http://www.bankrate.com/cnbc/news/auto/ ... ler-a1.asp------------------
Tom Ham
AutomotiveManagementNetwork.com
7 Reasons NOT to Trade in Your Gas Guzzler
Posted:
Wed Nov 26, 2008 12:16 pmby jazdale
Of course its good advice, but that's not what sells cars, is it?
Simple math example
Guzzler - 4.00 (gallon) / 15 (mpg) = 26 cents/mile
Sipper - 4.00 / 30 = 13 cents/mile
1000 (miles/month) = difference of 130.00/month in decreased fuel costs
Owe 18000 on an SUV thats only worth 12000 = 6000 negative equity. Without figuring interest, thats 100/month to roll into a 60 month loan. Don't forget, you still have to buy the $30,000 economy car with unpredictable lease-end values and a tighter credit environment.
Saying that....
If the customer wants to do the trade, I wouldn't talk them out of it!!