Auto Discovery

Ruslan Zalutski asked:


SUV … Such machines now are fashionable – number of the drivers preferring them, in the beginning of 21 centuries began to grow with frightening speed. Agree, that in soul you want the big true off-road car – such economical “bull” with classical framed structure design.

Such as Nissan Patrol, for example. Here it, one of few alive classic a cross-country genre. Without seen changes the automobile wade through mud since 1997 – since then the veteran has transferred only one modernization to 2003.

The circuit of a full drive on army is simple – with rigidly connected forward bridge, back self-locking differential and lowering transfer. Available one single modification – GR with in-line three-liter diesel engine capacity 160 h.p is accessible.

One more veteran – and this time in full sense of this word – Mercedes a G-class. The automobile is issued here 29 years (!) all in the same old-fashioned body. Do Not toil to peek under bilge or under hood this off-road car in quest of revolutionary technological decisions. There is not present neither multilever independent suspension brackets, nor smart all-wheel circuits: everything, as before – an opportunity of blocking of all three differentials and lowering transfer.

Updatings only three are diesel G 320 CDI (224 h.p.), G 500 with 296-strong motor V8 and mad G 55 AMG Kompressor capacity 500 h.p.

Perception Toyota Land Cruiser 200, debuted in the last winter, is too subjective business, but we shall not be silent about design all the same! Auto practically has not changed: and who in one year will recollect, what it is the new machine? It as suppresses all bulldozer a pressure huge radiator ” blade”, and this become swollen back part …. ooh!

Full drive on Land Cruiser – with interaxal differential Torsen. The most part of the twisting moment – 60 % – gets to back wheels. Moving down on impassability, “center” it is possible to block a key. The off-road car is offered as with petrol motor V8 (4,7 ?, 288 h.p.), and with a turbodiesel (4,5 ?, 235 h.p.).

The fourth generation Mitsubishi Pajero which has appeared in the autumn of 2006, externally also has not strongly changed in comparison with the predecessor, but is looked more interestingly Land Cruiser: in shape there is no that heaviness and massiveness. On Pajero the circuit of a full drive checked up by time with the asymmetrical interaxal differential, henceforth working in a tandem with system of stabilization is used. A drive on a forward axis – connected.

It is offered to drivers two versions of the fourth Pajero: with a turbodiesel in volume of 3,2-litre (165 h.p.) and with petrol motor V6 3.8 (250 h.p.).

To these off-road cars the attitude always special – Land Rover Defender for many became something like talisman. The old man, by the way, have rejuvenated the last year. As they say, let well alone: external changes in shape Defender a minimum. The lattice of an air inlet on a right wing has appeared only, and the new cowl has lost an arm for a spare wheel.

The circuit of transmission at updated Defender has remained former – a constant full drive with blocking interaxal differential and demultiplier.

Let’s glance under a cowl? Here where the main new thing – a turbodiesel in working volume 2,4 l capacity 122 h.p disappears. Now in scale Defender – already 14 updatings with three sizes of wheel base: 90, 110 and 130 inches. And to the 60-anniversary of “legend” the appearance special is devoted to version Defender SVX.

Such here they – classics of a cross-country genre …. Also it would not be desirable, that they became some kind of “ last from Mohicans ”, for ever given a up the place elaborate SUV which are appreciated unless only for appearance and thickness of a purse of the driver

John Bourne asked:


The 2008 Toyota Land Cruiser is both tech-savvy and convenient, with several new features that offer safety as well as reliability. Impressive new features include the Land Cruiser’s available Smart Key System, which automatically unlocks the door as the driver approaches, and voice-activated DVD navigation system with backup camera, which assists the driver while reversing the vehicle, alerting of nearby objects.

The 2008 Land Cruiser offers several standard safety features, including front, knee and side curtain airbags, and a tire pressure monitoring system, which alerts the driver when tire levels are critically low. Its novel 4WD Torsen limited-slip differential can sense if a tire loses traction and redistributes force to the front of the vehicle when needed. The Land Cruiser is designed with the family in mind with its child-protector rear door locks, and Child Restraint System, including top tether anchors and lower anchor points.

Color-coordinated front and rear bumpers and frame-mounted towing hooks add to the sporty appearance of the Land Cruiser, while integrated fog lamps and UV-reducing, green-tinted glass make it practical.

Interior comfort is provided by the Land Cruiser’s climate control and 10-way driver and 8-way front passenger power-adjustable heated seats. The Land Cruiser comes standard with JBL® AM/FM 6-disc in-dash CD changer, 14 speakers and FM diversity reception. Also available are Bluetooth capabilities, wireless technology and a power-tilt and telescopic steering wheel.

Each Land Cruiser comes equipped with a multi-information display with odometer, tripmeter, shift position, cruising range, fuel consumption, warnings, average speed, clearance sonar, and driving support functions including maintenance data. This Toyota’s power comes with 381-horse power and a V8 engine, making it one of the highest-torque vehicles on the road.

Toyota’s 2008 Land Cruiser combines innovation, safety and practicality, making it a must-have for the luxury-SUV buyer.

Matthew C. Keegan asked:


Mercedes took advantage of being the last automaker to show their new vehicles on Wednesday’s Press Day, by wrapping three of them in Christmas presents and unveiling them one by one.

The first, and the most important gift was the official introduction of the Mercedes GLK, the automaker’s all-new, small sport/utility vehicle. Handsome, with chiseled lines and a boxy look, the GLK may seem out of place during these days of avoiding all things SUV. Mercedes indicated as much, but stressed that the GLK is the perfect transition vehicle from the big SUV that their competitors sell (think Cadillac Escalade) to something that is smaller and more responsible.

The 2010 Mercedes GLK will begin to arrive in dealer showrooms this December, but become available to customers in January. Offered in both two and four wheel drive, the base two wheel model will retail for $33,900 while the 4MATIC version will start at $35,900. Mercedes said that when these prices were announced to their dealer group, everyone broke out in applause. In better days, price wouldn’t have mattered, but those days have since passed by and dealers know that customers are looking for value.

Mercedes has stressed that the GLK is not a smaller version of the GL rather that the vehicle is an original design sitting on its own platform. The GLK seats five passengers who benefit from its three-point inertia-reel seatbelt technology which includes electronically controlled belt tensioners that tighten up in the split second before an accident occurs.

Side impact airbags are standard, essentially a curtain that descends between the A and C pillars to protect front and rear passengers. Anti-lock brakes, brake assist, adaptive braking, electronic stability control, and traction control is standard on every GLK model.

Inside, Mercedes added the usual luxury touches to the GLK and some sensible ones too. The top of the dashboard is black, which reduces glare, while the rest of the dash, center stack and glove box are of the interior color chosen by the customer. Air vents and controls blend into the upper part of the dash as does the instrument panel.

The center stack holds controls for the climate and audio systems as well as control for other systems including the heated seats. MP3 connectivity is found inside of the glove box where a power socket and plug is located. A 7 inch display, what Mercedes calls COMAND navigation, features a map of all of North America with turning instructions included when called upon for directions.

Under the hood, it is V6 power only for the GLK. A 24 valve 3.5L V6 engine that produces 268 horsepower with 258 lb.-feet of torque is paired with Mercedes’ seven-speed automatic transmission. Together, these components provide exceptional power and just the right fuel economy for a vehicle in its class.

I liked the looks of the GLK and can see where it’ll give Acura, Lexus, Infiniti, BMW, and Volvo a run for its money. As far as the other two gifts go, they were limited production cars including a $299,000 AMG model that will see only 350 produced in 2009. As for me, I’d go with the GLK if I was looking for an entry level luxury sport/utility vehicle something Mercedes hopes car buyers will do in abundance in 2009.

Tim Dillard asked:


SUVs – Sport Utility Vehicles – are more popular than ever. Ownership of SUVs increased dramatically by 250% in the United States from 1995 to 2002 as many people, especially families, were seduced into buying an SUV partly in the belief that bigger meant safer.

If you are thinking of buying an SUV, there is good news and bad news as far as safety is concerned. In general an SUV is more than twice as likely to roll over in an accident as a car. Children are especially at risk, they are three times more likely to be injured in an SUV rollover accident than if they were in a car.

And contrary to popular belief, the more weight that an SUV carries, the higher the chance of an accident. Most SUVs are designed – and owners are encouraged – to carry extra weight in the form of extra passengers and cargo, whether it is on the road or off the road. One way to minimize the risk of a rollover if you do drive an SUV is to drive with less weight.

In 2004 (the most recent year with data available) rollover accidents killed just over 10,000 people in the United States. Rollovers are actually rare (less than 3% of all car crashes) but they are responsible for around 30% of all traffic related fatalities. However, rollovers are particularly serious types of accident as they often result in head injuries, or passengers being thrown from vehicles.

The good news is that SUVs are currently safer than ever, a trend that seems certain to continue. An increasing number of SUVs are being made with electronic stability control which dramatically decreases the chance of an accident. This may become a requirement in the next few years.

Manufacturers are also making more so-called car-based SUVs, vehicles that combine the appearance of a car and an SUV. These usually ride closer to the ground than regular SUVs and are therefore significantly safer. And at least fifteen major car manufacturers have agreed that by 2009, all their SUVs would be built lower to the ground, saving an estimated 600 to 800 lives every year.

Other safety features are being introduced. Newer SUVs now have rollover air bags, designed specifically to protect passengers from injury during a rollover. A sensing device will detect a rollover and trigger an airbag to inflate, usually on the side of the vehicle, at the same time tightening the seat belts.

If you are still interested in an SUV, choose your model carefully. Cost, features, and gas mileage will all influence your purchase, but safety should also play an important part in deciding which make and model to buy. Many automotive web sites offer unbiased reviews of SUVs and their safety rating.

Give some thought as to whether you really need an SUV. Statistics show that fewer than 5% of owners will actually use their SUV off the road. A car or minivan may suit your needs just as well, and will usually cost less.

The National Highway Traffic Safety Administration (NHTSA) published rankings for 2006 which show which SUVs are most and least likely to rollover in an accident. The figures are based on the chances of a rollover in a single vehicle accident, they don’t take in to account multi-vehicle accidents. The figures also don’t take into account what causes the accident in the first place.

The least likely models to rollover are the Chevrolet HHR, Ford Freestyle and Chrysler Pacifica. The models most likely to rollover are the Nissan Xterra and the Chevrolet Avalanche along with several other models hovering just behind these two as far as the rankings are concerned.

Car manufacturers are understandably concerned with these rankings, the cost in financial terms and buyer confidence is enormous. There have been a spate of vehicle recalls over the last few years; one of the most far-reaching was by Ford in 2003, recalling almost 1.7 million Explorers and Mercury Mountaineers. And Toyota recalled almost a million SUVs in 2005 because of a defect that could possibly affect the ability to steer the vehicle.

So before you buy your next SUV, do a little research. It may just save your life if you are involved in an accident.

Tim Dillard asked:


SUVs are notoriously known in the automobile industry for being quick to get into rollover accidents. While this is not a totally unfounded claim, it is also important to note that SUV rollovers typically don’t happen because of manufacturer defects or design flaws’ they happen because drivers are dangerous in a vehicle that is already prone to rollovers under certain conditions.

But how’s a driver to stay safe? SUV rollovers happen more commonly than rollovers in other vehicles because, essentially, SUVs are top heavy. There’s nothing you can really do to change that, short of not buying an SUV, but there are tips you can use to stay safe from SUV rollover no matter what kind of vehicle you drive. Take these tips to heart, they could very well save your life.

1. You can avoid SUV rollovers by choosing a smart SUV. Know what you’re buying before you buy it! Check out consumer reports, guides, and rollover ratings. In general, SUV rollovers are most likely to happen with vehicles that are tall and “skinny.” The best SUVs to buy when you’re hoping to prevent rollover are the ones that have a father distance between the tires in the back.

2. The second tip, which you cannot overlook, is to drive your SUV “like an SUV”. If you’re used to driving a car, or even a truck or van, it is tricky to jump into an SUV and take off. You can’t take curves as quickly in an SUV. If you try, rollover is likely. Before you speed down the highway, take a few days or weeks to learn the feel of your SUV’s steering, brakes, acceleration, and so on.

3. When dealing with an SUV, drive safely. This is, of course, the best tip to use when driving anything, but it is important to note that most SUV rollovers only happen when the SUV goes off of the main road.

If you’re chatting on your cell phone, doing your makeup in the car, or tending to yelling children in the backseat, it is much more likely that you’ll run off of the road, where you’ll hit a ditch, curb, bump, or obstacle and be thrown head over heels.

4. To go hand-in-hand with the last tip, drive according to the road conditions. SUV rollovers are more likely on rural roads, simply because potholes are more common. If you’re driving on a dirt road or road that rarely gets repaired after the winter, having an SUV can prevent you from sticking in the mud, but at the same time, a pothole can cause you to become off balance and, in effect cause an SUV rollover. Remember that driving for the road conditions also includes the weather. If it’s raining, snowing, or foggy, slow down.

5. Avoid panicking when steering. The common response to losing control is to over-steer in attempts to regain control. Don’t panic and fall into this trap! You’ll only make matters much worse. Instead, grab the wheel firmly and try to keep the vehicle going in a straight path, as you pump the brakes to slow. When you panic and steer sharply, it has the same effects of going around a turn too quickly, and SUV rollovers are common.

6. Keep your car in tip-top shape if you want to avoid SUV rollover. Most importantly, check your tire pressure. If one tire is running low on air, this will not only cause efficiency problems, but will also make your SUV be prone to rollover. Keep in mind also that ESC systems are now available to upgrade your SUV.

This kind of a system monitors your vehicle and your movements to prevent rollover. If you carry things in your SUV, make sure that these things are distributed evenly according to weight. Centrifugal force plays a huge roll in SUV rollovers, so check your loaded items often.

7. Wear your seatbelt. Okay, this isn’t exactly a way to prevent SUV rollovers, but it is a way to prevent death if your SUV should happen to rollover, for whatever reason. More fatalities occur because the driver or passenger was thrown completely or partially out of the SUV as it rolled, and reports show that buckling up can reduce your risk of death when in an SUV rollover by up to 75%.

Be safe, be smart, and if you do happen to become involved with an SUV rollover, which can happen to even the best drivers, contact a lawyer to learn about your legal rights.

Nick Johnson asked:

SUV rollovers have become a huge safety issue in the eyes of the governmental crash test safety commissions. SUV rollovers are frequent in a very high percentage of Sport Utility Vehicle involved accidents. Unfortunately, SUV rollovers can create a devastating scene when an accident should have been completely survivable. Serious injury and death are likely to occur in the event of an accident that involves an SUV rollover.

SUV rollovers occur when the Sport Utility Vehicle is unable to maintain a safe center of gravity and it becomes top heavy during a turn or an accident. With a wheelbase too narrow for safe navigation of turns, SUV rollovers often happen when it is least expected. While weather factors can play a role in creating SUV rollovers, most of these accidents occur when the roadways are clear of ice and snow.

In single vehicle crashes, SUV rollovers accounted for 53% of deaths involving SUV single vehicle accidents while small car single vehicle crashes accounted for only about 19%. That’s a huge difference and one that truly has opened the eyes of governmental crash test safety commissions. Smaller Sport Utility Vehicles, the ones with a wheel base of about 100 inches, are much more likely to be involved in a rollover accident. Sport Utility Vehicles with 100 inch wheel bases were involved in four times more SUV rollover accidents than single vehicle crashes with regular cars. These are some staggering numbers considering that Sport Utility Vehicle manufacturers have marketed SUVs as safer than average vehicles. These numbers prove that Sport Utility Vehicles are not safer than regular cars.

Safe driving issues are partially responsible for the high number of SUV rollover accidents. SUV drivers tend to drive these vehicles as though they are regular cars, or tanks. Sport Utility Vehicles are neither tanks nor regular cars, and they can not be driven as if they are. SUVs are higher, they don’t corner well, and despite their four wheel drive features, they are still able to lose control under inclement conditions. Driving an SUV at high speeds in the snow when everyone else is creeping along is begging for an accident.

SUV rollovers are just as likely to occur in accidents involving smaller cars. While small car passengers are more likely to die in an accident involving an SUV due to design flaws, not weight, SUV rollovers are likely to occur after the SUV hits the small car. SUV rollovers have become a serious safety issue. Sport Utility vehicles are far from compatible with other vehicles on the road, and pose a greater threat to small car owners and drivers than other vehicles. SUV rollovers still remain a top threat to SUV drivers.

SUV rollover tests along with other crash testing results prompted governmental organizations to require higher safety standards for Sport Utility Vehicles. The process ceased however, when these organizations realized the cost for SUV manufacturers in redesigning all of their Sport Utility Vehicles. SUV manufacturers returned the favor with promises to create safer Sport Utility Vehicles. Few safety features have been added to create safer Sport Utility Vehicles to protect other cars or to prevent SUV rollovers.

Most Sport Utility Owners report that they purchased their SUV in an effort to be safer on the roadways. Many SUV owners report that despite the safety literature and research released on the lack of safety which SUVs are known for, they still feel safer in their SUV. SUV rollovers have become a well known phenomenon, but SUV owners feel that they can handle their vehicle without special training or driving advice. This mentality only increases SUV rollover risks and small car driver safety risks.

In a recent poll, most American drivers are concerned about SUV safety and SUV rollovers, a much higher percentage of care came from those who don’t even own an SUV. Car companies claim that the production of their Sport Utility Vehicle lines are designed around what the SUV driver wants. This is in direct contrast with what the polling shows.

SUV rollovers will continue to be a risk as long as drivers are willing to accept their SUVs without additional safety features. Public education about SUV rollovers have heightened awareness, but has not deterred SUV sales enough for the manufacturers to feel the impact. The Sport Utility Vehicle manufacturers are not willing to take the initiative to create SUVs that are safer and prevent SUV rollovers, and thus as long as consumers continue to purchase these vehicles, the risk factors will never be addressed.

Muna wa Wanjiru asked:

When we compare in the first place the SUVs with the domestic cars first there comes a thought that the SUVs are far more than worse with respect to fuel economy. With the advent of better technologies it is not a hard and fast rule that SUVs are bad in the region of fuel economy such is not the case. There are two main types of SUVs which are available in the Market today. Fuel efficient SUVs and Fuel Guzzler SUVs.

Basically SUVs are not meant for Mileage; they are sport cars. They are mainly meant for performance, speed and more speed. Today due to restriction on Carbon emissions and due to increasing competition in the market with the changing trend of people to environmental protection has given birth to Fuel Efficient SUVs. This is a major change which has taken place in the field of SUVs. Still only a few SUVs can meet the fuel standards which are maintained by other vehicles. Many of the SUV models have more weight. Speed and have less fuel efficiency when compared with other cars.

So many companies like Saturn, Ford and Toyota have engineered a golden mid way out of these crises. They have created hybrid SUVs. These cars are called hybrid since they can run on Electricity too. This Hybrid or dual nature of these vehicles is instrumental in increasing their fuel efficiency. Approximately the mileage of these vehicles is approximately twenty six miles per gallon. The best cars in this category belong to the companies like Saturn, Ford and Toyota. They are more useful for towns and cities since they are made for mixed driving. The names of these vehicles according to the companies are as follows:

Saturn Green line, Ford Escape, Lexus RX and even Toyota Highlander these vehicles are the best in this regard. This allows these SUV vehicles to be used by families.

There are three varieties of SUVs they come in market first are the varieties which are built on passenger car basis, second type of SUVs are built on the line of truck chassis and the third and the last type of SUVs are the built on the lines of Rovers. The examples of each of these types of Sport vehicles are as follows:

Examples for first type is Toyota Highlander

Example for second type is Ford Excursion

And the third type consists of Range rover and land rover vehicles.

These models vary in size, weight, utility and mileage. The four cylinder engine is definitely higher on average.

Let us consider the best Mileage SUV Vehicles:

The best fuel mileage SUVs are small in number comparatively but are there in the market. The features of these SUVs are having a four cylinder, and two wheel drive. The examples of these types of SUVs are Toyota RAVA, Saturn Vue, Honda CR-V, Ford escape, Mazda Tribute, and Toyota Highlander. These are the few examples of Fuel efficient SUVs.

Some of the SUVs are worst in fuel Efficiency – - with examples being the Mercedes-Benz G500 and even the land rovers which struggle to ***** even fourteen miles per gallon. Most of the SUVs are of this type they also offer less room and comfort.

So you are bound to get different varieties and a range of SUVs in the Market which will be either on par with other vehicles or can be of such caliber that even comparison between them and the other type of Vehicles is not possible. This means that they are not bad but they carved a different Niche for themselves in the market.

Kevin Cramner asked:

Gas prices continue to soar, your SUV gets 16 mpg, and your paycheck isn’t increasing.  Consumers feeling their pockets getting empty are starting to ask questions.  Could the high gas prices just be temporary? If not, then I guess it’s time to trade the SUV in and get a fuel efficient vehicle, right?  Actually that might not be the smartest idea.  In order to answer these questions we need to understand the current SUV situation and determine what this means financially.

Sport Utility Vehicles (SUV’s) have become the norm for a vehicle purchase over the last 10-15 years.  As many cars became smaller over this timeframe compared to the cars in the 1970’s, people became interested in sport utility vehicles and why wouldn’t they?  These vehicles have plenty of leg room, a large storage area, four-wheel drive, feel very safe due to their size, and are powerful.  One of the biggest selling features is they provide a higher seating position allowing the driver to view more of the road and surroundings.

Not only did consumers have a desire for SUV’s, but they wanted larger SUV’s.  The big three U.S. vehicle manufacturers, Chrysler, Ford, and GM, were making extremely large profits on these vehicles.  The Ford Excursion, Chevy Suburban, Hummer, GMC Yukon, and Chevy Tahoe are the largest SUV’s on the market.  These vehicles were being bought by families, shuttle drivers, and small business owners.  Due to a tax break many small business owners and mostly anyone who could write off the vehicle as a work related expense became consumers for these enormous vehicles.  They were able to write off almost the entire cost.  This encouraged lawyers, doctors, accountants, and real estate agents to buy these SUV’s, when they really have no use for this type of vehicle.

The U.S. vehicle manufacturers and consumers were both happy until the one major flaw of SUV’s was magnified.  These vehicles were gas hogs.  Hurricane Katrina started to reveal this flaw in 2005 when this hurricane caused disruption to refineries.  Gas prices soared above $3 a gallon.  Prices would start to come down as the refineries got back into full production, but not down to where they were before the hurricane.  This was due to the price of a barrel of crude oil rising to over $50.  In 2004 the average price of a barrel of crude oil was $37.  This brings us to July 4th, 2008 as the price of a barrel of crude oil is now over $145 and the price of a gallon of gas is over $4.

This has caused U.S. vehicles manufacturers to slow down and terminate some SUV lines which have been their most profitable over the last decade.  Consumers are now buying small fuel efficient cars and hybrid vehicles.  The problem for many consumers is they are looking to trade in or sell their SUV’s to purchase a fuel efficient vehicle, but there are not many takers for at least what the consumer feels is fair value.  Typical supply and demand has caused very fuel efficient cars and hybrid vehicles to sell for the ticket price or above.  SUV’s are selling way below ticket price since there are a lot more sellers than buyers.  Vehicle manufacturers are overloaded with SUV’s and the dealerships can’t sell the ones they already have on the lot.

Just this data makes it seem foolish to trade or sell a SUV at this time, but the financial numbers is what will really influence the decision.  There are many different situations a consumer might be in.  A consumer who is not able to afford fueling their SUV might need to trade their SUV in.  Perhaps there is no loan against it and the value of the SUV is high enough to get them an equally or lower priced car.  This means they directly cut down their gas expense and haven’t changed their monthly budget.

Some examples using numbers can probably give everyone a general idea to help with their decision making.  $30,000 is close to an average cost of a SUV.  To set-up this example we will say John purchased a $30,000 SUV four years ago.  With zero down and a 6% interest rate his payments are $580 a month and he has a current loan balance of $6000.  Let’s also examine Joan who purchased the same year and model SUV for the same amount but her loan is paid off.  Currently, a dealership is offering $9,000 for the SUV.  Therefore each consumer has sunk costs of $21,000.  Also this means John will have to use $6000 of the $9,000 trade in to pay his existing loan.  His balance of $3000 will go towards his new purchase and all of Joan’s $9,000 will be put towards her new purchase.  We will take a look at these situations in two different ways.

First we will look at the situations by monthly budget.  Since car payments are monthly payments we need to determine how much money is spent on gas each month.  We will use the current average U.S. gasoline price of $4 a gallon.  Joan’s roundtrip to her full-time job each day is 30 miles.  On the weekend she drives on an average 100 miles.  Therefore, Joan drives 1,000 miles a month.  At 16 miles per gallon she pays $250 a month.  Currently she doesn’t have a monthly car payment so her monthly total for gas and car payment is $250 a month.  Joan is looking to purchase a car which is the same model year as her SUV.  The car costs $15,000, but gets 27 miles per gallon.  After her $9000 SUV trade-in her monthly car payment will be $116 (using 6% interest rate).  Her monthly gas expense will be $150.  This equates to $266 a month for gas and car payment.  Her monthly expense for a car payment and gas is actually higher now which is mainly due to her only getting $9,000 for her SUV.

John’s roundtrip to his full-time job each day is 60 miles.  On the weekend he drives 100 miles.  Therefore, John drives 1,600 miles a month.  John pays $400 a month in gas.  If John purchases this same car, then his monthly gas expense is $237.  After the $3000 John will be able to put towards his purchase, his car payment is $232.  His total expense for gas and car payment will now be $469.  John will actually save over $100 a month.  However he was in the last year of his SUV payments and now his car payments will continue for five years.

The second way we will look at these situations is to determine the break even point.  We can determine how many miles it will take in order to make up for the loss on the SUV.  The loss on the SUV is not the $21,000 sunk cost, but the difference in trade-in value from the time before gas prices skyrocketed to the present time.  The sunk cost has to do with trading in a vehicle for another one.  We won’t use the $21,000 since we are strictly looking at if the SUV is worth trading in just to get better fuel efficiency.  Before there was a large increase in gas prices, a typical SUV like John’s and Joan’s would have a trade-in value around $14,000.  Now the trade-in value is $9,000 which equates to a $5,000 difference.  In using cost accounting we need to determine the sale per mile and the variable cost per mile.  The $4 per gallon gas price needs to be converted to a cost per mile since we need to get the break even point in miles.  The sale per mile is just the SUV’s fuel cost per mile.  This is $4 a gallon divided by 16 miles per gallon which equates to a cost of 25 cents a mile.  The variable cost per mile is the car’s fuel cost per mile.  This is $4 a gallon divided by 27 miles per gallon which equates to a cost of 15 cents a mile.  Next we determine our contribution margin per mile which is the sale per mile of 25 cents minus the variable cost per mile of 15 cents which results in a 10 cents per mile contribution margin.  Finally we use the $5,000 loss and divide by the contribution margin per mile of 10 cents which provides the answer of 50,000 miles.  The break even point of 50,000 miles is the amount of miles that need to be driven in the car to recover the $5,000 loss on the SUV.   To simplify the problem we simply converting both vehicles’ cost of gas per mile and took the difference.  Then we divided the loss on the SUV by this difference.  It will take Joan over 4 years of driving the car to recover the SUV loss at her current usage and it will take John over 2.5 years.

The future of the gas prices is unknown which makes the future value of the SUV unknown also.  However, we know the value of an SUV has dropped significantly.  If we could have predicted this drop, then trading in the SUV before this occurrence would have avoided the $5,000 decline in value.  The problem is most SUV owners couldn’t make this prediction so they are presented with the situations we have examined.  In these examples we only looked at the financial numbers which alone didn’t strongly favor trading the SUV in for a car.  Also, like in the stock market, it doesn’t make sense to sell low and buy high which is currently happening when SUV’s are traded in for fuel efficient cars.  When we consider the advantages of a SUV which have led them to their popularity over the years it doesn’t make much sense to give these advantages up.  Perhaps the next time a consumer is ready to buy a new vehicle they won’t purchase a gas guzzling SUV, but for current SUV owners it makes sense to continue to enjoy the great features of these vehicles.