Archive for June, 2008

Is it the “Smart” purchase?

Thursday, June 5th, 2008

With gas prices all over the country near or exceeding $4 per gallon, the big question on the minds of many is how can I save money on gas? I read that many companies are moving to 4-day work weeks, working 10 hour days instead of the previous standard of 8. Though this may be idyllic for some, others do not have this as an option. Working at home has its appeal, yet this too is not an option for everyone. The average person can only rely on driving less to save a buck. There is always the option of trading in for something more fuel efficient. Europe’s SmartCar is now for sale in the US, but it has me questioning, “How smart is this car?”

I started by comparing the SmartCar to something similar in size, the Mini Cooper. Though the automatic SmartCar does get 33 MPG city and 41 mpg highway versus a similarly equipped Mini which gets 22 mpg city and 30 mpg highway, the one thing that the Mini has over the SmartCar is a back seat. My mother-in-law has owned a Mini for two years, and I have ridden in the back seat. It’s surely not the largest back seat, but it isn’t as small and uncomfortable as one might think. And at least it exists. My husband and I drove 200+ miles to Orlando this weekend in his two-seater Honda 2000. The biggest problem was the finding room in his trunk to fit the gadgets and gizmos we purchased while on our trip. Had we been in my car, a Toyota Rav4, we not only would have had room in the backseat, but also in the “trunk”, and in the hidden trunk below. We thought that taking his car would save us on gas; however, I believe that those times when he revved his engine above 100 mph may have had some effect on this. So be it. My point is, you don’t miss the backseat until you don’t have it. And once you don’t have it, you miss it. A lot. How smart is it to trade in a car for one without a backseat?

I then wanted to compare the SmartCar to something else, but still similar in size. I found that the Honda Civic not only gets 40 mpg city and 45 mpg highway, beating the SmartCar on both counts, but the Civic has a beloved back seat! I’ve owned a Civic before. It drove well, and it was comfortable, though my Civic did not get the 40 mpg it now claims. Regardless, a Civic gets reasonably high gas mileage, it has a backseat, and it in general is more spacious. It has more cylinders, more horsepower, and it holds 3 more people than a SmartCar ever can.

I’m not implying that people should never buy a SmartCar. Small cars such as these are essential in Europe where parking spaces are invaluable and hard to come by. But I don’t live in Europe, and I don’t plan on moving there anytime soon. Until I do move to an area where it would be advantageous to drive a car which is only 106 inches long, I’ll stay in my current 181 inches. And my 19 mpg city and 26 mpg highway. And I may even sit in my backseat, just because I can.

Smart Car specs
Mini Cooper specs
Toyota Rav4 specs
Honda Civic specs

This article was contributed by A.J. Silberman

Trade In That Gas Guzzler?

Wednesday, June 4th, 2008

In May of 2004 I traded in a 2000 Toyota Celica for a Dodge Ram 1500. In hindsight I have to admit, it was probably not the best decision. in 2004 gas was selling for around $1.75 a gallon. The first time I filled up the tank on the truck it cost me almost $40. The Celica cost about $25 to fill up. I remember the feeling of dread as I watched the gas pump counting up that first time and thinking “Thank God gas is only $1.75!”

As the price of gas has continued to rise over the past four years I’ve often thought about that first fill up. Don’t get me wrong. I love my truck. I always wanted a big powerful truck and my Dodge Ram fit the bill. I also do a lot of home repair and woodworking projects which require me to haul large sheets of plywood, 2×4s, dirt, flowers and such. Try to fit a sheet of plywood in a Celica.

I could go on and on about why I need the truck. But every time I fill the tank I wonder If I really need the truck. Better yet, can I continue to afford the truck. Last week gas was $3.91. A full tank, 26 gallons, will now cost me over $101.66! OUCH! I don’t know about you but that puts a big dent in my wallet. Luckily for me I no longer make the daily commute to work. In 2004 I drove 34 mile to work, which took me over an hour in rush hour traffic. I was filling the truck every four days. If I had to do that today I would be spending at least $500 a month on gas.

When I read this Sun-Sentinel article about trading in for a fuel-efficient car, I once again found myself wondering about how much I really need that big truck. I use to lease my vehicles, but decided to buy this truck with the thought that I really didn’t need a new car every four years. I was going to keep this truck forever! So it made sense to buy, not lease. With only a year left to pay off the car, would it really be cost effective to trade it in for a more fuel-efficient vehicle? Lets do the math. One year of payments is roughly $5500. Right now, since I don’t commute and only use the truck when I have to, I only spend about $75 a month to put gas into the truck. That’s about $900 a year. Total so far, $6400. Add $700 for insurance and we’re up to $7100. The Sun-Sentinel article estimated a cost of about $9,000 for a new Toyota. Based on that I’m saving almost $2000 a year keeping the truck.

However, if I was commuting to work I would be spending an additional $4820 a year on gas. If that were the case, I would definitely need to think about trading in or, at least, getting another vehicle to get to work every day.

So for me, trading in the truck is probably not the best choice. Even if I wanted to trade in the truck, I doubt if I would get a decent trade-in amount. With the rising cost of oil, people just are beginning to move towards smaller cars resulting in less truck sales. GM just announced four truck and suv plant closures. And the Hummer brand may be discontinued. Imagine that!

I suspect that the cost of gas will continue to rise. And, while we might change our driving habits or trade-in for smaller fuel-efficient cars, Americans will continue to drive. We are a nation that depends on our vehicles to get us to work every day. For many people cars give us independence. The automakers are finally taking the steps to develop more hybrids. Alternative fuels are being developed. The future of the automobile is safe.

In the meantime my big honking yellow truck will sit in the driveway.