And though hybrid owners may have had a difficult time finding mechanics who were willing to do routine maintenance on their vehicles in the early days of this technology, it has now been around long enough that many more mechanics have the training to handle it.
When it comes to maintenance, hybrid cars may cost about the same or possibly even less to maintain than their gas counterparts.
However, a gas guzzler beats a hybrid or electric car hands down when it comes time to take both into the shop. This particular money-saving aspect of gas guzzlers is not necessarily borne out when comparing them with other internal combustion engine vehicles that happen to have better mileage. In short, sticking with an old standby which is not as fuel efficient can save you a lot on insurance.ģ. The new batteries and engines just have not accumulated enough data to determine what the exact risk is to the insurance company.” “since they are new, there is no track record to determine how they will age and how they will stand up to accidents in the third or later year. What that means is that you will pay a lot less in insurance for a car whose risk is easier to assess. On top of that, the most you’d receive in a total loss settlement would be $2,000, and that doesn’t factor in the amount you’re paying for collision coverage.”įinally, the metrics for determining the long-term depreciation of a gas guzzler are well established, as opposed to those of a hybrid or electric car. “If your vehicle is worth $2,500 and your collision premium is $500 per year, you’re paying 20 percent of your vehicle’s value for one insurance coverage. uses this example to show that collision coverage on inexpensive cars is generally not necessary:
In addition, driving a quality but underappreciated gas guzzler will often mean that you can drop your collision coverage. If it will cost very little to replace your car, then you pay less for insurance. In part, this has to do with the lowered value of less popular cars. Insuring your gas guzzling car will save you a great deal of money over a more efficient car. Part of what is driving these prices up is the expectation of fuel efficiency from Toyota vehicles.Ģ.
He describes a 2007 Toyota Camry with 197,000 miles and interior issues selling for nearly $8000 and a 2004 Toyota Sienna with 153,000 miles and a huge crack on the dash selling for $8600. For example, used car dealer Steven Lang who writes for The Truth About Cars recently bemoaned the prices at auto auctions for cars that, at first glance, would not seem to be good buys. If you are bent on buying a fuel efficient used car, expect to pay close to new car prices, even if the car has high mileage or even some damage.
After the Cash for Clunkers program in 2009 removed more than 690,000 used cars from the roads and the recession caused more drivers to hold onto their cars, there are a lot fewer quality used cars available for purchase. According to a recent Polk analysis, the average age of America’s fleet of cars is now 10.8 years. This is especially a concern for anyone looking to purchase a used car. Since fuel efficiency is paramount to most car buyers, the cars that rarely top 15-20 miles per gallon are necessarily going to be harder to sell, so dealers and private parties alike will be willing to negotiate on price. If you are looking to buy a car in the next year, here are some solid financial reasons why you might want to look at a gas guzzler rather than a sipper:ġ. While fuel economy is certainly an important aspect of both reducing your environmental impact and saving money at the pump, the fact is that chasing after the best MPGs may be costing you money. Ever since gas prices got above the $3 mark, fuel efficiency has been one of the most important factors influencing car buyers.Īccording to a Consumer Reports survey, “when it comes time to shop for their next new car, 37 percent of survey respondents said fuel economy is the leading consideration, trumping other important factors including quality, safety, and value.”