Watching the gas pump ticker climb past $60, $70 or even $80 every time you fill the tank may have you cursing your SUV and longing for a more fuel-efficient vehicle. And you’re not alone. Americans are spurning gas guzzlers, driving down sales of medium and heavy trucks by 16.2% in March 2013.*
But before you start trolling dealerships for a smaller, more fuel-efficient vehicle, it pays to do some calculations. Trading in a small SUV with marginal fuel economy for a car with only slightly better gas mileage likely won’t net you any savings. Ditching an extreme gas guzzler for a hybrid, on the other hand, might put you ahead.
To help you decide if it’s time to downsize, analyze some key information. Buying a new car could leave you with a higher monthly payment – but will the money you save in fuel make up for it? Factors such as the trade-in value of your current vehicle, available auto loan rates and terms, estimated fuel economy (miles per gallon) of the new and old car, the average price of gas and the number of miles you typically drive in a year can help you make the decision.
Start Your Engines!
If the time is right to shop for a more fuel-efficient car, keep the following tips in mind:
Size matters. How you use your vehicle will help determine the space and engine size you require. Smaller vehicles and smaller engines generally need less fuel.
Keep it simple. When it’s time to select the extras, remember that two-wheel drive beats four-wheel drive and a stick shift beats an automatic transmission in the game of fuel economy.
Go for new. Buying new or late-model used helps you take advantage of newer technology that helps cars run more efficiently.
Let Us Help
The great rate and flexible terms you’ll receive with an auto loan from Horizon Bank can help you afford a more fuel-efficient car. To learn more, call 888-873-2640, stop by or visit a consumer loan officer today!