Trading in you gas guzzler? Make sure it's worth it!

Previously I had posted a link that allows you compare vehicles side by side and gives some very useful information concerning fuel costs. I recently came across a more useful tool that actually breaks down your cost savings per month and the estimated time it would take for you to realize these savings based on your trade in. The value of your trade in is based on estimated fair market value.

The example I have here assumes that I am trading in my 2005 F-150 for a new Honda Civic LX 5 speed coupe:

2008 Honda CivicLX 2dr Coupe (1.8L 4cyl 5M) $17,325

2005 Ford F-1502dr Regular Cab XLT 2WD Flareside 6.5 ft. SB (4.6L 8cyl 4A)

My Trade-In Value (includes typical options): $12,126

Cost of Fuel-Efficient Car Minus Trade-In: $5,199.00

MPG of Fuel-Efficient Vehicle: 30

MPG of My Trade-In: 15

Number of Miles Driven per Month: 1000

Price of Gas: $3.95

Amount Saved on Gas (per month): $131.67

Number of months to break even and begin saving money on gas: 39

Seem a little unreasonable? Most people trade in their cars every three years or so, so my estimate of 39 months seems like it wouldn't be worthwhile to make this trade. However, there are many other things to take into account here.

For one, my truck isn't paid off. My current payment is $340 a month. With a down payment of $5000, my payment on the Civic would be around $220 a month. I could easily sell the truck outright and get somewhere near the estimated retail value of $17,120 considering it has several thousand dollars in upgrades that aren't accounted for in the blue book pricing.

Add the savings of $120 a month on the car payment with the $131.67 in gas savings and you're looking at a monthly cost reduction of $251.67 a month! Not to mention that I would have a vehicle that has 0 miles on it compared to 35,000. And a better resale value. The only negative to this experiment is that I would be acquire roughly $5,000 more debt, the difference between what I owe on the truck and the cost of the Civic.

Try it yourself and see what your results are!

Keepin' it Orginal

I have to admit, I sometimes have feelings of guilt. Guilt about changing the color of the interior in my Mustang. I know this sounds a little funny, but I've always been split on the restore/modify fence. I love some original restored cars, even those with chalk marks on the firewall. But part of me also loves cars that are modified, though I prefer the simple look without too many body mods.

My thinking is that if you don't do anything permanent to harm the car (i.e., anything that can be changed back to normal without hacking anything up) then you're ok. I just prefer an interior color other than blue. Rather than spend an exhorbitant amount of money on replacing every interior piece or buying some orignal color interior paint, I just decided to go ahead and change the color to grey.

This isn't really a big deal for most Fox Body Mustang Enthusiasts. Doing 5 lug swaps, changing engines and trannys, etc. is no big deal. Have often do you see completely restored 5.0's that are completely original? But as cars become rare and prices rise, it will be inevitable. Just look at all the orginal 64 1/2 and up stangs that go for big money now. They experienced a similar phenomena as they were modified heavily and raced in their heydey.

I for one feel like I should build my car however I desire. I bought it to (perhaps) keep it forever and build it the way I like. I want to be able to enjoy the car and be happy with it. And you should too, because that's what this hobby is all about.