Silly Gas Move!
by Dave Ramsey

I drive 120 miles a day to and from work in an old, paid-for SUV that gets 14 miles per gallon. I’ve done the math and calculated that I would save $437 a month driving a vehicle that gets 30 miles per gallon. The SUV is worth $6,100. Should I trade in the SUV toward a new, small car and put the gas savings toward the payments?

Dear Dave,

I drive 120 miles a day to and from work in an old, paid-for SUV that gets 14 miles per gallon. I’ve done the math and calculated that I would save $437 a month driving a vehicle that gets 30 miles per gallon. The SUV is worth $6,100. Should I trade in the SUV toward a new, small car and put the gas savings toward the payments?

Michelle

Dear Michelle,

No way! Why on earth would you want to pick up a car payment again when you’ve got $6,100 to work with?

I’m all for saving money on gas – especially with fuel prices being where they are now. But why not sell the SUV and use the $6,100 to buy a nice little gas-sipper? And please, don’t try to tell me that you can’t find a great used car – one with decent mileage that gets a whole lot better than 14 miles per gallon – for that kind of money.

There’s not a chance under the sun that I’d recommend you pick up a car payment, Michelle. Sell the SUV, find yourself a good little $6,000 car and keep your money in YOUR pocket!

Dave