bman

Ok enough of the SUV bashing. Im going to show you how it really isn't much cheaper for most folks to ditch the SUV and get a more fuel efficient vehicle. Especially IF their SUV is paid-off or almost paid off:

Let's start with the most common scenarios that fit the majority of SUV owners.

1) the cost of fuel at $4.00/gallon.
2) Your SUV gets 10mpg
3) you average 40 miles per day including the wknds
4) Your SUV is leased or on loan and your payment is 600.00/month.
5) Your SUV insurance cost is approximatly 80.00/month

Total monthly cost (roughly):
Payment: 600.00 (based on 25,000 loan amount)
Fuel: 1200 miles / 10mpg = 120 gallons @ 4.00/gallon = $480.00/month in fuel
Insurance: (roughly): 80.00/month
======================================
Total monthly cost for gas guzzling SUV: $1160.00

Now lets buy a common 25-30mph little fuel efficient car:

1) the cost of fuel at $4.00/gallon
2) Your car gets 25mpg
3) you average 40 miles per day including the wknds
4) your car is leased or on loan and your payment is $600.00/month
5) your car insurance cost is approximately 80.00/month

Total monthly cost (roughly):
Payment: 600.00 (based on 25,000 loan amount)
Fuel: 1200 miles / 25mpg = 48 gallons @ 4.00/gallon = $192.00/month in fuel
Insurance: (roughly): 80.00/month
======================================
Total Monthly cost for econobox car: $872.00

NET SAVINGS OF SUV vs ECONOBOX: $288.00/month

Now lets ditch the payments and assume that either are paid off:
Total monthly cost of SUV: $560.00
Total monthly cost of econobox: $272.00
Total NET savings of $288.00

Net savings $288.00/month for my shiny new treehugging car that can't haul anything and will probably put me in the hospital or a grave if Im involved in a serious wreck. Seems like a lot of savings.... yes?

Well what about those who's SUV's are already paid off? The savings change quickly.....

$560.00/month for my paid-for SUV versus $872.00/month for a shiny new econobox.

How much more would we have to drive to make it break even? Well, at 4.00/gallon for fuel I'd need to drive enough miles to spend MORE than 288.00/month in fuel. And at 25mpg that would be 1800 miles a month MORE than what I drive now. Wow.. where's the savings in this??!!!

So the moral of the story is:

If your SUV is paid off OR close to being paid off, keep it! Its cheaper to
drive IF you drive less than 1800 miles per month.