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Should you replace your SUV with a more fuel efficient car?

Clark had a call recently from a man who was concerned about how much money it took to fill up his SUV. The man was wondering if he should replace his SUV with something more fuel efficient to save on gas. Clark told the caller not to dump the SUV because in the end it wouldn’t be worth it. But afterward he thought about how much of a burden it is to fill up SUVs and other gas guzzlers these days. The advice still holds true in terms of replacing a vehicle, however. Forbes confirmed in a recent article that it doesn’t make sense to get rid of a car you still owe money on because of the price of gas. That’s because most of the cost of a car is not in the price of fuel. The majority of the cost is in the depreciation of the vehicle, the interest on the loan and the maintenance on it. Now, if you’re at a time when you would normally sell a car, it makes sense. But don’t just dump a car because gas prices are high. That’s an emotional reaction and it’s not a good idea.

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This week's poll
The high cost of jet fuel has a lot of people staying at home this summer instead of traveling. Is there a "staycation" in your immediate future?
Yes, I just can't afford a plane ticket and/or hotel room right now.
No, I've saved up all year just to get away for a bit.
Maybe, I have to wait and see how my finances pan out.
see previous polls


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