I have a 1999 Jeep Cherokee with 200,000 miles on it that gets 16-17 miles per gallon and I'm trying to decide if I should get rid of it and get a more fuel efficient car.
My job is in the health care/education industry and it requires me to drive between client's homes, so moving closer to my job or biking to work are not options.
I drive approximately 750 miles per month and at the current rate of about 3.20 per gallon the math tells me that I'm spending about .20 per mile. My employer pays me .38 per mile for my drive time between clients, but not to my first assignment or for the drive home after my last client of the day.
As of right now, there is no difference between my gas costs and what I am reimbursed from my job. In other words, I spent 150 on gas last month and I was reimbursed for 150.
Obviously with a more fuel efficient vehicle I would end up making money on the difference. I was looking at getting a Scion xA which I believe should get me an average of 35 miles per gallon for a current cost of .09 per mile.
Assuming I drop 8,000 on a used car and get 1500 for my Jeep, the Scion should pay for itself in about 6.8 years from gas alone.
The other option is to drive the Jeep until the wheels fall off and it can no longer be driven. I have no car payment, but do sometimes worry about having to pay for repairs. Right now the mechanic says the engine and transmission are in great shape. Last summer, I replaced the starter and the radiator. The only major repair I foresee is the rear differential needing to be replaced.
So does it make more sense to keep the Jeep, try to get another year or two out of it, and invest the money elsewhere, or sell the Jeep now and get a more fuel efficient car?