One of the most damaging yet silent expenses to your bottom line can be the cost of gasoline for your car. With gas prices at an average of $3.818 per gallon it is becoming clear that if you want to save money, buying a car that has good MPG (Miles Per Gallon) is the way to go.
The 4 Cylinder
We own a 2002 Toyota Echo that gets 32 MPG according to FuelEconomy.gov. If we drive 15,000 miles per year using the current national average of gas, it would cost us roughly $1,790 per year for fuel. That is a little over $149 per month.
To be fair I will use another Toyota in this analysis. According to Fuel Economy.gov a 2002 Toyota Sequoia gets 14 MPG on average. Using the same driving miles, it would cost roughly $4,090 per year. Breaking it down further it would cost slightly over $340 a month.
The Bottom Line
Owning a V-8 could be costing you thousands of dollars more a year then if you bought a 4 cylinder vehicle. According to this particular study, having a V-8 costs $2,300 more per year or $191 per month!
Taking it Further
You might like having the power of a V-8 and think that you are willing to pay the extra couple grand per year to own it. Well, let’s take the $2,300 per year in savings and invest it for the next 30 years. If you were able to get a 7% annual return, how much do you think you would have? $217,259.81!
Is owning a V-8 that important to you?