A Gas Guzzler May Save You Money

With ridiculous gas prices sweeping across the U.S., it might seem intuitive for a car buyer to look for something fuel efficient like a Smart Car, Prius, or Honda Civic. But with dealers struggling to get rid of trucks and SUVs (domestic brands in particular) some unprecedented deals for gas guzzlers are appearing which may actually make sense for buyers to jump on.

Manufacturers are offering between $2,000 and $5,000 in discounts on once popular models like the Ford Explorer and Chevrolet Suburban, and dealers say there’s room for negotiation after that. Used SUVs and trucks often have even greater discounts, with some selling at roughly one-third the price they would have fetched new four years ago.

Among the better bargains are Ford’s SUVs, the Expedition and the Explorer. An Expedition with four-wheel drive has a sticker price of about $35,000, but in many areas, consumers can get one for $30,000 after discounts and negotiations. The all-wheel-drive Explorer with V-8 engine lists for about $31,000, but can be had for $25,000.

These deals only make sense if your driving routine is local or you simply want a truck or SUV. If you only drive five or 10 miles a day it will take years for even $4.00 gas to surpass the value of many discounts, and by that time your lease may have ended.

Source: Wall Street Journal