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Is It Really Worth Trading In Your Truck or SUV?

Posted by J.S.

June 19, 2008

While it may be a very tempting proposition when facing four plus dollars per gallon at the pump, it may not necessarily be the best option. There are many things to be considered before taking such a drastic step. Consider carefully whether it will truly be a money saver for you and your family before jumping into an emotional decision based of fuel cost rage. Depending on a variety of factors, length of current loan, interest rate of current loan vs. that of the new loan, equity in your current vehicle and so on, trading in your SUV or Truck may not be such a good idea. Vehicles that sold for premium prices just a few short months ago are losing value daily. As the price of gas soars, the equity in your large tank vehicle diminishes. Issues to consider, in addition to the aforementioned, are: have your vehicle needs changed, will a smaller vehicle be conducive to your lifestyle, or is your family going to have to make major adjustments to suit a smaller vehicle?

Something many have not thought about is, will you wind up paying more in the long run for your smaller vehicle (because the loan on your larger vehicle needs to be added to your new one), and do you really want to be locked into another long-term vehicle loan so close to having the old one paid off? Every person can do ONE thing that will make a huge difference, regardless of the size vehicle or gas tank he or she has. Change what station you are purchasing your fuel from. If you are reading this article, you read the internet. Locate American oil and gasoline. Once the “big-five” realizes that the American public are not purchasing imported fuel, they will be forced to make price changes based on demand. High demand equals high prices, low demand equals lower prices. When we change the demand from foreign fuel sources to American only fuel sources, the prices of imported oil will drop. OPEC is raking in the highest profits in history and the American consumer is paying the price. Before you consider changing your lifestyle, cramping your family into a smaller vehicle, or increasing your debt, consider all of your options carefully. Think of every aspect of the decision to trade in your larger SUV or Truck for a smaller vehicle, which will probably cost you more in the long run then the price at the pump.