Fuel Efficient Cars Can Save a Bad SUV Situation

Upside down on a vehicle loan? Lots of folks who own sport utility vehicles are finding them too expensive to operate with high fuel costs but they can’t sell them because their vehicles are worth less than the remaining loan payments. In car-speak, you’re “upside down” on a loan when you owe more than your car is worth.

The smart thing to do is park the SUV and store it. (Matthew Wright, About.com’s Guide to Auto Repair, has advice on storing a vehicle.) If possible, cancel the registration and insurance (or get the appropriate levels for the latter).

Then, go shopping for a used car in the $2000 to $4000 range to use as basic transportation. I have developed recommendations for fuel efficient used cars that have average reliability or higher according to Consumer Reports.

Your savings in fuel costs alone can pay for these cars in 18-24 months (faster when you factor in insurance savings). In that time the used SUV market could rebound because some people will always need them. Plus, you won’t have seen your car sold at a loss or repossessed by your lending institution.