Dave's been getting many questions recently from people all over America about the rising gas prices and fitting the extra costs into the budget. Many people wonder if it would be better to get a vehicle that gets better gas mileage—like a hybrid—instead.
Well, do you really want to lose more money?
The Math Doesn't Work
Let's say you currently drive a vehicle worth $10,000 that gets 15 miles/gallon. There's this $25,000 hybrid you're thinking about buying that gets 25 miles/gallon. That's a $15,000 price difference just to get 10 more miles a gallon. If you drive 100 miles a week, that's about a $10 difference a week.
So that would be about $40 extra you're spending a month in gas if you stuck with the current car. A monthly car payment is much more than that! To get your money back at current gas prices, it would take you almost 29 years to save $15,000 in gasoline!
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The math doesn't work! You'd have to drive to the moon and back to make it worth it!
What You Can Do
- Get a different car. If you want to sell your gas-guzzling car, buy another car worth no more than the previous car's selling price. This means no car payments!
- Carpool. If you live near a coworker, this can save you both money—even if you just share a ride one day a week.
- Move closer to work. Write down all the specifics to see if it makes sense in your unique situation.
- Change jobs. No one says you have to work where you do. There's always the option to work close to home or even start a home-based business.
Don't use this high-gas excuse as a rationalization to go get yourself a new car or spend a dime more on one. It's not worth it!
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Ramsey Solutions