Fuel prices going up...

Daubs · August 30, 2005

Wife's been asking if it's really all that bright to be driving a Burban and a HD Big Block crew cab. So I sat down with trusty Excel and crunched some numbers. Based on 15,000 miles per year and $3.00 per gallon pump prices (anticipating we will cross over that mark very soon...thank you hurricane kat)

She asked if it would be a good idea to get a little economy box car to drive back and forth to work. Her Burban is averaging about 14 MPG city. I like the fact that she has a nice big, body on frame vehicle to drive that is 4x4. Peace of mind on her 25 mile drive to work here in the midwest winters.

Downsizing to a smaller sport ute would get us a max of 21-22 MPG city (and I'm talking Honda CRV here...very small). Difference in fuel cost would be about $1,100 per year less for the Honda. So buying a 3rd vehicle would not be cost effective for many years.

If we got a Honda Accord 4 cyl manual tranny would save about $1,500 per year in fuel costs. Still not sizeable enough chunk to warrant purchase of additional vehicle. Of course we could sell the Burban, but she really likes it and i like the safety. So I'm going to just frown and bear the rising cost of fuel.

By the way...someone please explain to me why fuel shot from $2.60 per gallon to over $2.90 per gallon just because news reports were talking about hurricane Kat's impact on prices? Is this not price gouging? Help me understand...please.

opusspyguy · August 30, 2005

I am in the same situation as you. It would take me around 4 1/2 years to just break even if I kept my truck (2002 CC 8.1) and purchased a more fuel efficient vehicle. I am getting just over 11 MPG around town, and have started to use my Wifes Honda Odyssey, when she dosen't need it. So the argument that I would be saving money would not apply to me, but it is frustrating spending 65-70 bucks every 7-9 days. Not sure where I am going with this, just agreeing I suppose.

Wife's been asking if it's really all that bright to be driving a Burban and a HD Big Block crew cab. So I sat down with trusty Excel and crunched some numbers. Based on 15,000 miles per year and $3.00 per gallon pump prices (anticipating we will cross over that mark very soon...thank you hurricane kat)

She asked if it would be a good idea to get a little economy box car to drive back and forth to work. Her Burban is averaging about 14 MPG city. I like the fact that she has a nice big, body on frame vehicle to drive that is 4x4. Peace of mind on her 25 mile drive to work here in the midwest winters.

Downsizing to a smaller sport ute would get us a max of 21-22 MPG city (and I'm talking Honda CRV here...very small). Difference in fuel cost would be about $1,100 per year less for the Honda. So buying a 3rd vehicle would not be cost effective for many years.

If we got a Honda Accord 4 cyl manual tranny would save about $1,500 per year in fuel costs. Still not sizeable enough chunk to warrant purchase of additional vehicle. Of course we could sell the Burban, but she really likes it and i like the safety. So I'm going to just frown and bear the rising cost of fuel.

By the way...someone please explain to me why fuel shot from $2.60 per gallon to over $2.90 per gallon just because news reports were talking about hurricane Kat's impact on prices? Is this not price gouging? Help me understand...please.

<{POST_SNAPBACK}>

Scyry · August 30, 2005

By the way...someone please explain to me why fuel shot from $2.60 per gallon to over $2.90 per gallon just because news reports were talking about hurricane Kat's impact on prices? Is this not price gouging? Help me understand...please.

<{POST_SNAPBACK}>

Service stations pay up front for the gas they get. Since they see a price increase coming, they are upping prices now so they can prepay for the next shipment. It will be interesting to see how many oil rigs were uprooted in the Gulf too. I heard atleast 2 were early yesterday. Being Mississippi Delta is a huge port for oil tankers, and all the refineries down there, it will be a while before the oil production is back to normal. Plus the cynical side of me see this as a convient excuse to raise gas over $3.00/gal and not bring it back down afterwards.

Trouttrooper · August 30, 2005

I bought a used Lumina LS car for $3,000 4 years ago. It get's 27 mpg city and 32 highway. My wife drives about 35,000 miles a year back and forth to school. Makes more economic sense to me for her to drive a car at 32mpg than my truck at 12mpg. We get on average 14 feet of snow a winter and there's only about 3 or 4 days a year she needs the truck to make it through the snow. That car has more than paid itself off in gas price savings and unnecessary wear and tear on our truck.

dewfpo · August 30, 2005

Yeah, we drive a seven year old car that gets 28 mpg everywhere we go and only drive the big block when absolutely necessary. The insurance on this car is cheap and it's a midsized, RWD but very safe car (Volvo).

It's not the gas stations that are the cause of the rise in gas prices, it's the futures market speculators. WALL STREET.

DEWFPO

chadlyt · August 30, 2005

it all depends on how you look at it. even if gas prices go down, you'll still be saving $$ with the smaller car. unless you think that gas will go back down to 1.50...

mitchntx · August 30, 2005

I have never understood how folks can justify a $4-8000 expenditure in order to save $20 a week in gasoline.

Obviously these folks never took economics in school ....

Shaners · August 30, 2005

I'll be riding my '04 Yamaha Vino 125 Scooter as soon as the rain quits. It gets 80-90 MPG's and it'll go 50-60 MPH.

I did the 2-driver/3-car thing several years ago, and found the the maintenance and insurance outweighed the savings. This is especially true in my case because we only average about 5k miles per vehivcle per year (when we run just two...)

whitesnake01 · August 31, 2005

By the way...someone please explain to me why fuel shot from $2.60 per gallon to over $2.90 per gallon just because news reports were talking about hurricane Kat's impact on prices? Is this not price gouging? Help me understand...please.

About 25% of the US refined fuels come from that area, according to the mayor of New Orleans. And all this is shut down now and there is no timetable to bring it back as long as the water levels are going up. Basically, our production of fuels has virtually no slack and this thing hit is below the belt..

ril850 · August 31, 2005

I am going to start using public transportation.

Supurban · August 31, 2005

I have never understood how folks can justify a $4-8000 expenditure in order to save $20 a week in gasoline.

<{POST_SNAPBACK}>

Agreed. Buying an expensive car that gets incrementally better mileage than the truck being replaced is kind of pointless. A $400-500 a month new car payment plus insurance versus a $100/month gas hike?

The cheapo runaround car that does get better mileage is a good scenario. But the car has to be d**n cheap and even better, already paid off.

Sure, I'd like to drive a better commuter car than my old Subaru. But since it is paid for and gets a modest 23mpg (over the 14.5mpg Suburban), I'm saving a couple of bucks and still having a good time enjoying the gas guzzler.

bob1527 · September 5, 2005

I have never understood how folks can justify a $4-8000 expenditure in order to save $20 a week in gasoline.

<{POST_SNAPBACK}>

Agreed. Buying an expensive car that gets incrementally better mileage than the truck being replaced is kind of pointless. A $400-500 a month new car payment plus insurance versus a $100/month gas hike?

The cheapo runaround car that does get better mileage is a good scenario. But the car has to be d**n cheap and even better, already paid off.

Sure, I'd like to drive a better commuter car than my old Subaru. But since it is paid for and gets a modest 23mpg (over the 14.5mpg Suburban), I'm saving a couple of bucks and still having a good time enjoying the gas guzzler.

<{POST_SNAPBACK}>

i too agree also as well. my dad did this. he has an f150 crew cab 4x4 and he wanted to get a gas saver micro mahine. i knew my dad would get a car and never use it and i practically begged for him not to do it. and one night he comes home with a brand new acura tl, and he thinks he screwed the salesman because he got a free car cover. . anyway, that was about a month ago. and right now its squeezed in the garage with the free car cover on it with a 100 miles on it. he's driven it 3 times.

jamashke · September 9, 2005

Well there are some pros and cons in here but I did it. I hate driving the dumb thing but here is some economics for you...

Told insurance the truck is now set to less than 9000 miles a year

Drive the Kia Rio most of the time now (POS I tell you that but 100000 bumper to bumper helps)

It was costing me roughly 275.00 a month (at the 2.50 per gallon rate not any of the new rates) just to drive my truck back and forth to work. No arrons.

This Kia is costing me just under $200 in payment and so far has cost me roughly 90.00 a month in gas for running EVERYWHERE.

The wife even parked her Jeep Unlimited and will take the car (drop me off at work).

So now we are not driving a Jeep and a Truck.

Yeah I know suck it up but what I used to really drive my truck for everything cost me almost $700.00 at the prices last month not including our trip.

I do miss the truck as a daily driver!!!