Tipping Point
If fuel prices go much higher, forsaking SUVs for more fuel efficient cars will become something most everyone will want to think hard about. Just when that shift happens, however, depends on many factors, but based on the increase in dollars spent on gasoline, we’re either already there or are nearing the tipping point.
Again using the Toyota Camry, Ford F-150 and Chevy Tahoe as examples, and assuming a 15,000 annual mileage use, we’ve compared today’s fuel cost of around $3.10 per gallon to $4.10 per gallon, and matched that to what we were paying per mile this time last year:
2004 Toyota Camry – 28 mpg: $2.04 per gallon: $1,092
2005 Toyota Camry – 28 mpg: $3.10 per gallon: $1,660
2005 Toyota Camry – 28 mpg: $4.10 per gallon: $2,196
(Toyota Camry with four cylinder engine and automatic transmission)
If you bought that Camry new in 2004, you can see how fuel prices are adding to the cost of keeping a car, and this doesn’t factor roads traveled or wear and tear that lowers fuel economy.
2004 Ford F-150 – 15 mpg: $2.04 per gallon: $2,040
2005 Ford F-150 – 15 mpg: $3.10 per gallon: $3,100
2005 Ford F-150 – 15 mpg: $4.10 per gallon: $4,100
(Ford F-150 with 5.4-liter V8 engine, automatic transmission)
Compared to last year, when Ford truck owners were paying $170 a month for gas, they’ll be paying almost double that when gas reaches $4.00 per gallon. Chevy Tahoe drivers get it even worse.
2004 Chevrolet Tahoe – 13 mpg: $2.04 per gallon: $2,353
2005 Chevrolet Tahoe – 13 mpg: $3.10 per gallon: $3,576
2005 Chevrolet Tahoe – 13 mpg: $4.10 per gallon: $4,730
*Chevrolet Tahoe with 5.3-liter engine, automatic transmission
So here we are, at last – the tipping point, at least for large SUV owners. When gasoline hits $4 per gallon, those drivers who make their way to and from work in a vehicle that averages 13 mpg or less will be paying around $200 a month more than in 2004. That’s straight math, so real world dollars will very likely be more. Considering the amount of buyers who have jumped into these fuel efficient vehicles over the last two years, as automakers such as GM and Ford have heavily discounted these most profitable staples of their lineups, and the problem becomes acute for many who find themselves in a car that gulps gas – and dollars – and no feasible financial way out of the nightmare.
Photos courtesy of the auto manufacturers
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