From the Greensboro News & Record

The following was submitted the N & R recently, and I liked it so much that I decided to come out of my blogging coma and post it for you. Enjoy ;-)

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Gas prices are on the rise again, and while price swings will continue, the long-term trend is nothing but up.
There are plenty of ¨villains¨ with their hands in the cookie jar, but the fact is the world´s maximum productive capacity is fast reaching its peak (virtually every Western industrial nation already has and the Middle East is not far behind).
Soon, rising demand will outstrip world supply and $4 gas prices will be fondly remembered like the nickel candy bar.
Many Americans seem unable to accept or deal with this new paradigm and its straightforward solution: Reduce miles driven and/or switch to a higher-mileage car. While some are slowly and grudgingly coming to this realization, many still have one last defence: ¨I can´t afford to trade my gas-guzzler for a more efficient vehicle, I´ll lose too much money,¨ or ¨I´ve already paid off my loan, I can´t afford a new car.¨
If these are your excuses, consider this: If you own a big truck or SUV, it is depreciating rapidly (for example, a basic $31,000 Ford Expedition purchased in 2004 currently has a Kelley Blue Book ¨private sale value¨ of approximately $13,000). That $18,000 is gone forever. In fact, if gas prices continue to rise dramatically, the loss of the ramaining $13,000 isn´t far behind.
What can you do? Trade the Expedition for a fuel-efficient alternative. If you can see your way to a midsize (buy a trailer if you move big stuff occasionally), a Chevy Malibu of comparable age and mileage has a private sale value of $8,000.
If a large vehicle is really required, a comparable Dodge Grand Caravan also carries a private sale value in the $8,000 range. Such an exchange via private sales offers the opportunity to make money, and purchase from a used-car lot at least to break even.
Both the Chevy and the Caravan would be cheeaper to maintain, depreciate less and yield significant gas savings. At 15,000 miles per year and $4 per gallon, the Malibu would save $1,328 a year and the Caravan $709. Coupled with liss maintenance and depreciation, annual savings would likely be approcimately $2,825 for the Malibu and $2,100 for the Caravan, or $235 and $175 per month respectively.
Is the SUV really that cool?

By Richard Mearns, Greensboro native.