No matter how you look at it, gas prices are soaring and we can’t bear to pay $4.00 a gallon this summer. Our SUV loan is already paid off and we could trade it in to get the benefit of the blue book value and get a new car (possibly a hybrid) that could save us money in the long run. They are predicting $5.00 a gallon by the end of the year. Let’s hope not.

The battle we are trying to fight now is about the blue book value of our SUV. Due to soaring gas prices, most of the SUV owners are trading their SUVs for a more energy-efficient vehicles. That push has lowered the value of SUVs in the last year or so. Even the car makers have stopped producing SUVs due to low demand in recent months. We wer going to obtain an I guess a new Auto Loan to trade in my SUV but we had to think very carefully.

So if we are to obtain a new car, it is inevitable that we would still need Auto Financing. It’s our loss for purchasing an SUV and it will not be to our benefit to keep it. Either lose more money on gas or drive a newer, energy-efficient vehicle. I think we will go with the latter. We can’t predict the future but we know that gas prices are not coming down anytime soon.

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