Downsizing: Choosing a used car to save gas and money
The meteoric rise in gasoline prices may have peaked, at least for now. But many shell-shocked consumers expect the pain at the pump to be a chronic condition, according to US Today.
"On average, prices of fuel-inefficient used cars fall a lot and those of fuel-efficient used cars rise a lot when gasoline prices increase … So if you drive a lot be aware. But if you drive a little, you should buy a used fuel-inefficient vehicle when the gas price goes up."
This is the advice of Florian Zettelmeyer, a professor at Northwestern's Kellogg School of Management whose newly published research indicates that you’ll save significantly on the selling price of the gas guzzler; but because you'll drive the car only rarely, the extra cost of gasoline will have only a minor effect on your purse.