- When people mention fuel-efficient cars, gas mileage is the prime factor to consider. Gas mileage is estimated in miles per gallon when driving in the city or when driving on the highway. Currently, the most fuel-efficient cars are smaller than average. Subcompact cars usually have higher gas mileage than full-size sedans. This does not mean that larger cars cannot have good gas mileage as each car is different.
- There are three times where the buyer of a new car has an advantage in buying a new car. At the end of the month: salespeople may need to sell a few more cars in order to meet their monthly sales quota. Every year, new models are introduced by the car manufacturers. Older models will not sell as well as the newer models, so purchasing a new car at the end of the model year may enable you to negotiate a lower price. The last few weeks of the calendar year are also a good time to shop for a new car as dealerships are often looking to end their year with as many sales as possible. Each of these time periods can be used by car buyers in order to negotiate a better deal on a more fuel-efficient car.
- The average car in the U.S. has a fuel efficiency of 20 miles per gallon. Assuming you trade in the average car for a more fuel-efficient car that has a fuel efficiency of 30 miles per gallon and gas prices are $2.44 per gallon on average, most car owners will save approximately $600 annually.
- Various other factors need to be considered before trading in your current car for a more fuel-efficient model. Financial factors include any loan amount you still owe on your current car and how much your car will be worth as a trade-in. Practical factors include the size of your family, where you live and how far you drive to work. These factors need to be considered along with the money you will save in gas with a more fuel-efficient car.
- If you still owe on your current car, the value of any trade-in may be negative in the long term. A fuel-efficient car may save you $600 per year on average. If your car payment increases by more than $50 per month, then the financial benefit of trading in on a more fuel-efficient car would not materialize. There are other costs to consider as well, including insurance costs and currently high loan interest rates that will further limit the financial benefit possible from trading in for a more fuel-efficient car.
