My short answer is: "no". I don't have a finance calculator but figuring the payments on a $21K ($27K car minus a $6K tradein) car loan comes to $437 a month assuming a 4 year term. I'm sure it's more like $500 including interest, but I'm just dividing 21000 by 48. You bring home $1024 a month. That leaves you maybe $500 a month for insurance, gas & personal expenses. I don't know how much you can save out of $500/mo over one summer but that def puts a large dent in your cash flow considering your circumstances--and future plans. Any savings in gas (assuming you do adjust your driving habits--maybe $20/week?) will not offset this payment much. And I just saw you mentioned using your $5k savings as a down payment. Using that leaves you no cushion to get your own place after summer. Furniture, first/last rent, deposit, all adds up.

I know the feeling of wanting a new car and dying to have it but I don't think buying one, no matter how fuel efficient it is or what kind of deal you negotiate, is the answer. I would buy the car after you've graduated, after you've got a steady job & income and after you've got your own place. Then you can really predict your income and expenses. You'll get a better interest rate too. Then shop for a car you like and can afford and make it your present to yourself for all your hard work and enjoy it. My suggestion is to keep your current car, rent a truck by the hour to move your stuff, and save that $500 a month towards putting your life in order--that's much more important than a car. Don't start this great time in your life crippled by a car payment. Start out running.

 

tarabell, thank you for the in depth look at the situation. I'm glad that there's experienced "older" people here willing to help us green-foots getting into the real world. I appreciate everyone's help on this matter and I believe the matter is closed. Thank you all for your suggestions...I've never been to such a helpful place. The input was AMAZING! I think I'm going to go ahead and sell the Durango privately (valued at 9.5k private value). Save that money and whatever other money I can to get a better head start later down the road. Thanks!!

 

Good Plan. The FEH is the first of it's kind.

Rumor has it... there will be advancements made in MY 2008... which... is not too far down the road.

I say... GET A 2008 Escape Hybrid!

Good Luck!
-John

 

LOL, you're welcome, my daughter (also in college) just calls me "old"-- I'm sure it's obvious I'm a parent too.

Just thought I'd give my 2 cents because I've been there, done that, and got the T-shirt.

 

Well, at the risk of being accused of being impractical (OK, I admit it...), if I'd made what some of these OTHER "old folks" would have concluded was the "right" decision, based on my finances, I wouldn't have my new Prius right now, and it brings me immense joy every day. (And I already HAD a new FEH...)

I'm managing to make the payments (on top of the higher payments for the FEH), and meet my other expenses... OK, we won't have a fancy vacation this year (but we went to Hawaii last year!), or be able to remodel our kitchen, but I knew that when I decided to get it. And I'm not sorry.

I'd say, do the math yourself, and make your own decision. Just try to be realistic about what you will need for other things, and what you are willing to give up to get a new(er) vehicle. It's true that some hybrid models may come down in price in a year or two, and there will be redesigns and upgrades, I'm sure. But you *could* be dead by then, none of us ever knows for sure. (oooh, that's heavy... but nonetheless true.) If you can really get $9500 for the Durango, and use a bit (maybe not all) of your savings, for a downpayment, you'd be able to knock down the payments on the FEH a bit. I'd suggest test-driving some of the smaller (and less expensive) hybrids (Prius, Civic, maybe even an Insight), just for kicks - even a "stripper" Prius is a pretty nice vehicle, the federal tax credit is over $3,000 (if you get one soon), not to mention the savings from getting 50-60 mpg. After all, I was a *confirmed* small-SUV driver/lover, *convinced* that I *NEED* 4WD (and there are times, up here in lake-effect snow country, when I actually DO - that's why we still have the FEH), and after getting and driving a FEH (which I still think is a great vehicle) for 7 months, I decided to sell my other (V6) Escape and replace it with a Prius! You never know, until you try them out.

Good luck! If you follow the (probably more sane) advice of all the people who have tried to convince you to wait, you probably won't be sorry. But, you won't have a really slick new vehicle to drive around in right away, either.

 

As a younger whippersnapper, I'll give my penny thoughts.

1. This is up to you. Don't allow anyone to talk you into or out of your decision; the last thing you want to do is be five years later and kicking yourself for listening to someone elses advice, especially if your gut instinct was (in retrospect at that point) right.

2. Ask yourself another question, are gas prices going to go up or go down over the next few years? If you answer the former, then perhaps you may want to really do the math on the hybrid. Not just the pure numbers, but also look at taxes, gas inflation, insurance, etc. Call your insurance company (or shop around), do the research in as many aspects as possible.

3. How long do you intend to own the vehicle? 2 years? Five years? Ten years? Until it falls apart on you? Do you drive a lot of miles in a year? The longer you own it, the better off you are, the more you drive it, the better off you are.

4. Do as much research as possible. This is a major purchase, you shouldn't try to make the decision on gut instinct and the advice of strangers on a weekend whim. Take your time. Read the FEH FAQ, test drive the vehicle. Shop around. Think about it both realilistically and emotionally. Can you live with being "stuck" with it for a decade?

5. As mentioned, don't think of the hybrid as an investment. Perhaps it may work more to think of getting it as a magic option, twice the distance on half the gas. 500+ miles on 14 gallons. Are you willing to relearn how to drive, to drive it like what it is, a hybrid, rather than a conventional vehicle to get the most out of your "magic" option?

I have an AWD FEH, and outside of a few crappy tanks (when I first got it, and because of the extreme cold, wind, and snow), I have been getting 33+ MPG, and close to 35 in the summer. If it weren't for Michigan winters, I would've gotten the FWD, which gets even better MPGs. I love the tech (Audiophile/Navigation system), and the massive amount of interior space compared to it's small exterior size. (I had a '95 Explorer) For me, this has been the right decision in every aspect. However, I am also Ford A plan, so I got my loaded AWD FEH for 28K, and was financially in a position to pay for it as a single payment, no loans or anything of that nature. That said, I have been keeping a spreadsheet, and have to date saved $1400+ in fuel compared to the Explorer I had, and $800+ against a conventional Escape in only 8 months of ownership.

Ultimately, this is your decision, make an informed one, and be happy with it, regardless of which one it is.

 

One of the members noted serious MPG drop off above 65mph.

I am starting to investigate new cars as mine is beginning to shows signs of wear- 100,000+ miles.

I drive 40 miles (one-way) to work every day. At least 35 of those miles are 65mph and higher driving. Someone noted that you wind up "toting" around a battery and would be better off with the V6.

That concerns me some. Does anyone drive long rolling hill interstates every day. I live in NYS where it is cold and we do get snow. My prelim vie of the FEH is a way to get V6 performance with V4 gas milage. My intention is not to cost justify the vehicle but to be able to trim the fuel costs of someone who needs a larger car.

From most of the [posts I have read it seem most get around 27MPG on the highway at higher speeds. This is what I get in my car which has a 3.0L V6 and is very aerodynamic.

Thanks for any input.

ps- someone mentionde wait until '08. Are there any published notes as to what will be improved?

 

When we checked into the Mercury hybrid 3months ago it was only availible in a 4cyl for the hybrid..?.. where did the V-6 come into play?? or am I misreading the post??

Nevermind I misread...

 

That was just one of the selling points that Ford is using. With the combo ICE and EV you can get V6 or better performance, i.e. pick up and go etc.

 

Ok, I've made up my final decision...and here goes.

Since I'm moving back in with my parents (21 year old war veteran, been out since I was 17.....how embarassing). At least I'm not completely mooching. I'm helping my dad with all of his bills and going to cover the water bill, plus buy all the food for the place (big house...5 people will be living there). Never the less, it's still much cheaper then living by myself where my expenses right now are around $7-800. I know you rich people are probably like, "Dang, that kids dirt poor." I manage.

So, this summer, I will work as much as I can (while still spending some fun time in the sun, oh yeah!). I'm going to save every dime outside of bills, a little entertainment, gas, and upkeep on my vehicle. I'm also going to set aside the $2000 I'll be getting for next semester financial aid. So, right before going to the Police Academy, I'll see how much i've saved. If it's substantial, I'll probably get a hybrid. If it's not that great, I'll wait the duration of the academy (6 months) and then get one.

Like I said earlier, I've received stunning feedback. I'm VERY sorry I didnt mention I do drive a 95' Geo Metro. It's just that I need something that can replace BOTH of my vehicles: the 99 Durango and the Geo. Insurances sucks on two cars. Im calculating now what I get on my Geo..not bad I dont think. I filled it up last night....6.9 gallons. I've been driving it all week..and I put a fair amount of miles on it.

Again, thanks! I'll keep in touch!