As Gas Prices reach over $3.00 a gallon, are you thinking of trading your truck or SUV?

As Gas Prices reach over $3.00 a gallon, are you thinking of trading your truck or SUV?

Should you trade your truck and SUV?

In my 20 years that I have been in the car business, there have been many times when gas prices have reached $3.00 a gallon or even have reached well over $4.00 a gallon.  During those times, we have seen customers come into the dealerships to trade their trucks and SUV’s for small more efficient vehicles because they are feeling the pinch at the gas pump.  Although some may have saved some money, many did not as they had to take a lower trade value for their Truck or SUV because of supply and demand.

As gas prices go up the demand for larger vehicles like trucks and SUV’s go down, in turn as the demand goes down so does the trade values.
 
Let’s take an example what you would save in gas if you were to trade in a truck for a more efficient sedan.
For This example let’s consider a 2016 Chevrolet Silverado 1500 5.3L V8 as your current vehicle and you want to trade it in for a 2018 Chevrolet Malibu 2.0 L 4cylinder.
According to www.fueleconomy.gov the 2016 Chevy Silverado 1500 will get 16 City MPG and 22 Highway MPG with a combined MPG of 18
the 2018 Chevy Malibu 2.0 will get 22 City MPG and a 32 Highway MPG with a combined MPG of 26

2016 Chevrolet Silverado 1500 5.3L V8

2016 Chevrolet Silverado
City MPG
Highway MPG
Combined MPG

According to www.fueleconomy.gov

2018 Chevrolet Malibu 2.0 L 4 cylinder.

2018-Chevy-Malibu
City MPG
Highway MPG
Combined MPG

According to www.fueleconomy.gov

The average person will drive 12,000 miles per year
at a $3.09 per gallon average price
the Silverado will cost you $2,060 in fuel for the year using the combined 18 City/Highway MPG
The Malibu will cost you $1,426 in fuel for the year using the combined 26 City/Highway MPG
So the difference between your Silverado and Malibu is $634 a year, $52 a month or $12.19 a week.
 
So is an extra $12.19 a week in fuel costs enough to make you trade in the truck, that you love, for a sedan that you will hate in a few months because you got rid of your truck. 
 
So my advise would be to hold off on trading your large vehicle, like your Truck or SUV until you are certain that you do not need that type of vehicle or until gas prices stabilize.

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