Rising gas pricing have definitely raised the question on what is the best solution for my automobile needs.  Everyone seems to think the best option these days is to trade in the gas guzzling SUV for a more economical car, but is this really the best option? 

Rising Gas Expenses have also placed automobile dealers in a predicament that might actually work to the consumer's advantage.  Just today, GM's stock fell to the lowest dollar/share seen since 1955.  In an effort to increase sales, profit margins and bail itself out of the bottomless oil pit, GM has taken the offensive and is now enacting special incentive programs to encourage consumers in the market to purchase an automobile to take action.  For example, GM is now offering 0% financing for 72 months on select SUVs and Trucks.  This is just one tactic to lure auto buyers into their dealerships and move inventory. 

Dealers across the board are offering discounts and incentives to move the gas guzzlers off the lot and into the buyer's garage.  Of course if you visit the lot and pass by the wandering salesman, you'll still get the ever so clever one liner, "We can't keep the trucks and suvs on the lot".  One thing for sure, we all know now is not a good time to be selling a truck or SUV, with low consumer confidence, high gas prices, and low gas mileage, you just can't win. 

So when comparing advantages and disadvantages of purchasing a car or suv/truck, be sure and consider the following points: 

1. Weigh benefit, cost, value and expense in monthly, annualized, and life terms
2. If you are self employed, such as a Fort Worth Real Estate Agent or Dallas Realtor, consider the tax write off you may claim with additional gas expense, could help place you in a lower tax bracket and end up saving you thousands in the long run
3. Compare annual gas expenses with upfront initial savings
4. Always take a closer look at Warranties, a 100,000 mile warranty on a truck or SUV might save you thousands in expenses down the road compared to a 50,000 mile warranty on the gas efficient car you have in mind.
5. Ask yourself this question, Are car sales managers going to negotiate more on a Truck or SUV that are difficult to give away in the current market or a gas efficient car that everyone is beating down the doors to buy?
6. What is your ultimate financial goal? To save money in the Short run? Save Money in the Long Run? Or secure comfortable monthly payments?
7. Always compare apples to oranges with emphasis on interest rates, trade in value down the road, monthly and annual expenses including gas and repairs (remember these may be minimized with extended warranties  

So, in conclusion, I ask everyone the million dollar question, Car or SUV?  Welcoming your comments, feedback, suggestions, and insight into the Automobile Industry....

For More Information on this article, please contact our Dallas Fort Worth Real Estate Brokerage.