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Transcript: Sell a big car for a small one?

Anchor Intro: You already know that prices at the pump are soaring. But what you may not know is how much it will cost you to trade in our gas guzzler for a something that gets better mileage. Bankrate.com visited a used-car showroom for this report.

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Voice over 1: Here's a rare site these days: Someone in a showroom looking for a big, gas-guzzling truck.

SOT: "I'll definitely get a good deal, if I can find the truck I want. But all of them looks like good deals."

Voice over 2: Truer words were never spoken. If you ignore the carbon footprint and focus only on the math, now's the best of times to buy a gas guzzler, and the worst of times to trade one for an economy car.

Voice over 3: Say you've got a 2006 Chevy Trailblazer. If you bought it new, you paid around 25 grand. But according to car site Edmunds.com, sell it today to a private party and you might get $12,000 -- less than half of what you paid. And by the way, that price has dropped almost $2,000 in the last two months.

Voice over 4: And what about economy cars? Here's a 2005 Toyota Corolla with 58,000 miles on it. At this dealership, their no-haggle price is $13,500 -- which is basically what it cost brand-new back in '05. According to Edmunds, dealer retail should be closer to 10.

Voice over 5: So other than helping the earth, trading big for little makes almost no sense. But if you're not trading, just buying big? You're in luck.

SOT: "I'm spending $2,500 a year more on gas, but I'm saving like $5,000 or $6,000 son the price of the truck."

Standup: Bottom line? Now is no time to swap your gas-guzzler for an economy car. However, if you're looking to buy one of these things right now, you're in gas-hog heaven. For Bankrate.com, I'm Kristin Arnold.

Bankrate.com's corrections policy
-- Posted: Oct. 31, 2008
 
 
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