Gas prices drive Geos from clunkers to chic

Non-technical forum for other car makes. Good example: VW fan sites.

Moderator: Moderators

Post Reply
User avatar
Mr Kleen
DCAWD Founding Member
Posts: 15034
Joined: Mon Apr 18, 2005 6:46 pm
Location: Wiesbaden.DE

Gas prices drive Geos from clunkers to chic

Post by Mr Kleen »

Gas prices drive Geos from clunkers to chic

CNN - It's a 12-year-old oft-mocked clunker of an automobile.

But Marci Solomon is hoping she'll be the one laughing -- all the way to the bank -- when her Geo Metro saves her from skyrocketing gas prices.

Solomon, like many others, was taking a huge hit when it came to gas prices. With her 100-mile commute to and from work each day, she saw no end in sight. Then she rediscovered the Geo Metro.

"I used to be a car snob, and I used to be too vain to drive anything that doesn't shine," said Solomon, an electrician. "But now it's about, do I want to eat, or do I want to make it to work? I want to do both."

The Metro has been making a huge comeback, especially on eBay, where Solomon bought the car, because of its extremely high gas mileage.

The 1996 Metro's average of 40 miles per gallon nears that of the hybrid 2008 Toyota Prius -- priced at $21,000 for the cheapest model -- and bests most current cars by a long shot, according to government ratings. Older models of the Geo Metro, specifically cars from 1991 and the XFi edition, have the same average as the hybrid. See how the Geo Metro stacks up with the Toyota Prius »

Solomon toyed with the idea of purchasing a Prius but decided that for a price of $7,300, the Metro was the more economical option.

For the most part, Solomon plans on using the car for commuting from her home in Rochester, Washington, to her job. The vehicle she has now, a Honda Element, was getting 28 mpg, and she was filling up twice a week, costing her nearly $100. Stations were charging $3.97 a gallon in her area Tuesday, she said. iReport: Tell us how high gas prices are affecting you

The Metro is an investment in the future, Solomon said, even if she did pay more than five times the Blue Book value of the car.

"It was all about saving money," she said. "I don't think gas is ever going to go down, and these are going to be the types of solutions we have to turn to. I wanted to beat the rush."

The rush may have begun.

The 1996 2-door 3-cylinder Metro Solomon now owns opened on eBay May 7 with a bid of $200. A week later, Solomon won the car auction with a bid of $7,300. In 1995, a new Metro hatchback sold for about $9,000, according to Auto Mall USA.

In May alone, 43 Metros of various years and models were sold on eBay, ranging in price from $221.50 to Solomon's bid of $7,300. The cars have been hot items, drawing upwards of 49 bids on certain vehicles, with many of the auctions coming down to last-second bidding wars. On Tuesday morning, 34 Metros were still up for grabs.

Since her eBay purchase, Solomon has acquired another Metro, which she is considering flipping on eBay for profit. She has her eye on a third at a local car lot.

"To be honest, I'm thinking of scarfing up any Geo Metro I can find," she said.

Solomon isn't alone in trying to profit off of a gas-saving craze. Brenton Netz has been selling fixed-up Metros and Ford Festivas for two years now.

After buying a Metro on Craigslist in Montana and driving it back to his home in St. Cloud, Minnesota, Netz realized how rarely he was making trips to the pump.

"I thought the gas gauge was broken," Netz said. "I couldn't believe the gas mileage I was getting."

He realized that he had stumbled upon a possible side business and began buying one-way tickets to states in the West to purchase as many of the cars as he could. Netz said he has sold about a dozen cars and has eight more sitting in his backyard.

His cars go up for sale only one at a time because he knows that putting up a couple at a time would drive down the value and cut into his profit.

Netz says consumers don't seem to mind paying more than the retail value, and if they do, they generally stop feeling that way after they pick up the cars. He's gotten phone calls and e-mails from customers saying how thrilled they are with the mileage.

It seems, Netz said, people are beginning to realize that their car choices need to be focused more on practicality than status and appearance.

"Gas prices are definitely driving increased popularity in the Metro, which at times wasn't cool," he said. "Now the coolness factor is stemming from the fact that you're getting 50 miles per gallon and never having to fill up."

Image
chicken n waffles
Moderator
Posts: 6314
Joined: Wed Oct 19, 2005 1:15 am
Location: Alexandria

Re: Gas prices drive Geos from clunkers to chic

Post by chicken n waffles »

geos will never be cool, neither will paying 5 times bluebook value for one.

fail.
-Ben
Image
User avatar
drwrx
DCAWD Founding Member
Posts: 4382
Joined: Mon Sep 20, 2004 8:00 pm

Re: Gas prices drive Geos from clunkers to chic

Post by drwrx »

A week later, Solomon won the car auction with a bid of $7,300.
YOU PAID WHAT!!!

This is the dumbest thing I've ever heard. $7,300 would buy you 1,825 gallons of gas at $4 a gallon.
The buyer's Element gets 28 miles to the gallon vs the Geo's 40 mpg (I'm willing to bet that a 12-17 year old Metro is NOT going to get it's prime 40 mpg)

So the Element goes 51,100 miles on that 1,825 gallons of gas, the Geo 73,000.

The mileage gained on the difference is 21,900 miles or 782 gallons of gas. At $4 a gallon that milage adds up to only $3,128 worth of gas for the Element. A loss of over $4,000! How does this make good economic sense? Even at $5 it's only $3,925, and that's still a loss of over $3,000! Let's also take into account the cost of keeping a 12-17 year old car running. I think it is safe to say a 15 year old Geo Metro will easily cost double as much to maintain than a 2-5 year old Element (2003 was the Elements first production year).

Sorry, anyone who makes THAT decision failed Economics 101.

And in the end, your stuck driving a Geo Metro for over 140,000 miles just to make up for the $7,300 you paid it.

Now, this does not take into account that perhaps the buyer sold the Element for $10-12 grand. Bought the Geo for $7,300 and pocketed the extra $3-5k. (But based on the math prowess exhibited by the buyer so far, my guess is they still have the Element as well, with all the insurance it demands.
chicken n waffles
Moderator
Posts: 6314
Joined: Wed Oct 19, 2005 1:15 am
Location: Alexandria

Re: Gas prices drive Geos from clunkers to chic

Post by chicken n waffles »

it doesn't make economic sense. we've already established that. that wacky broad overpaid to the tune of nearly 5 times the value of the car just to feel like she's easing the strain on her wallet. further proof that people are generally dumb.
-Ben
Image
User avatar
Mr Kleen
DCAWD Founding Member
Posts: 15034
Joined: Mon Apr 18, 2005 6:46 pm
Location: Wiesbaden.DE

Re: Gas prices drive Geos from clunkers to chic

Post by Mr Kleen »

for $2,500? I can see the merrits to that plan.
for $7,300? :shock: :rolllaugh: :rolllaugh: :rolllaugh: :rolllaugh:
User avatar
drwrx
DCAWD Founding Member
Posts: 4382
Joined: Mon Sep 20, 2004 8:00 pm

Re: Gas prices drive Geos from clunkers to chic

Post by drwrx »

Even at $2,500 the car doesn't make-up the difference for nearly 32,000 miles.
That is too much of a break even point, even if all other things were equal, and they are not.
This issue is why my buddy didn't get a Civic Hybrid back in 2002 and just got the base Civic.
The Hybrid was getting 41mpg combined milage. The regular was getting 35mpg.
The cost difference was extreme however. The Hybrid was $21,000 and he got the Civic for $13,500. Nearly $7,000 less! With the milage he was putting on the car, we figured it would take him over 10 years to make up the price difference based on gas savings.
User avatar
Libra Monkee
Moderator
Posts: 6478
Joined: Wed Mar 29, 2006 11:04 pm
Location: The Ether
Contact:

Re: Gas prices drive Geos from clunkers to chic

Post by Libra Monkee »

I remember part an adage abut "a fool and his money" and this story somehow reminds me of it.
Image

Libra Monkee- "Helping DCAWD meet its Equal Opportunity requirement since 2006."
User avatar
Cereb Daithi
DCAWD Groupie
Posts: 3747
Joined: Wed Apr 26, 2006 11:07 pm
Location: Pittsburgh, PA
Contact:

Re: Gas prices drive Geos from clunkers to chic

Post by Cereb Daithi »

She'll be laughing all the way to the bank indeed... and we'll be laughing at her as well. However as my avatar suggests.... there might be performance aspects to these cars that are yet unexplored!
User avatar
Sabre
DCAWD Founding Member
Posts: 21432
Joined: Wed Aug 11, 2004 8:00 pm
Location: Springfield, VA
Contact:

Re: Gas prices drive Geos from clunkers to chic

Post by Sabre »

Well, it's already been said, but I'll say it again... People just don't think sometimes!
Sabre (Julian)
Image
92.5% Stock 04 STI
Good choice putting $4,000 rims on your 1990 Honda Civic. That's like Betty White going out and getting her tits done.
User avatar
sirwilliam
Resident Poop Expert
Posts: 7226
Joined: Mon Aug 01, 2005 1:27 pm
Location: The Wild Serengeti Suburbs

Re: Gas prices drive Geos from clunkers to chic

Post by sirwilliam »

Some of the 3cyl Geos were so light that it took only two people to pick them up and carry them...gust of wind, you are gone...can't even imagine getting into an accident w/ one :shock:

Still like the Smart car w/ the hayabusa engine: LINKY
2004 SG Model A PearlBlackObsidian (RIP)
2008 SG Model D BlueRallyWorld

"When I get sad, I stop being sad and be awesome instead. True story." -Barney Stinson
"Nothing shuts my pie-hole but pie." -Shawn Spencer
User avatar
Libra Monkee
Moderator
Posts: 6478
Joined: Wed Mar 29, 2006 11:04 pm
Location: The Ether
Contact:

Re: Gas prices drive Geos from clunkers to chic

Post by Libra Monkee »

I'd rock a smart car. Stricktly as a secondary commuter-only vehicle, mind you. Those things can be cool little go-karts.
Image

Libra Monkee- "Helping DCAWD meet its Equal Opportunity requirement since 2006."
User avatar
sirwilliam
Resident Poop Expert
Posts: 7226
Joined: Mon Aug 01, 2005 1:27 pm
Location: The Wild Serengeti Suburbs

Re: Gas prices drive Geos from clunkers to chic

Post by sirwilliam »

Libra Monkee wrote:I'd rock a smart car. Stricktly as a secondary commuter-only vehicle, mind you. Those things can be cool little go-karts.
Chuck, I could see you rocking out in this on the roads! SMART MONSTER
2004 SG Model A PearlBlackObsidian (RIP)
2008 SG Model D BlueRallyWorld

"When I get sad, I stop being sad and be awesome instead. True story." -Barney Stinson
"Nothing shuts my pie-hole but pie." -Shawn Spencer
chicken n waffles
Moderator
Posts: 6314
Joined: Wed Oct 19, 2005 1:15 am
Location: Alexandria

Re: Gas prices drive Geos from clunkers to chic

Post by chicken n waffles »

Libra Monkee wrote:I'd rock a smart car. Stricktly as a secondary commuter-only vehicle, mind you. Those things can be cool little go-karts.
i don't get the smart car craze. they're tiny, have little to no storage capacity, use premium gas, and accelerate dangerously slowly imo.
-Ben
Image
User avatar
ElZorro
DCAWD Founding Member
Posts: 5958
Joined: Thu Aug 12, 2004 8:00 pm
Location: USA! USA!

Re: Gas prices drive Geos from clunkers to chic

Post by ElZorro »

sirwilliam wrote:Some of the 3cyl Geos were so light that it took only two people to pick them up and carry them...gust of wind, you are gone...can't even imagine getting into an accident w/ one :shock:
My dad had two Geo's. The first one he bought at 75k miles and then put on almost 250k more, then selling it for a depreciation of only like 30%. The second one he bought new after finishing his PhD (made alot of sense because he was driving tons of miles for work), and just a couple months later had an accident involving a large luxury car... Geo was completely totaled and the luxury car rolled away.

I agree with the Doctor's analysis, I went through this math a couple months back with grabbing an older model Civic, etc. Unless you are going to triple your gas mileage, and you are getting the new car for a great value, and you can get value out of your old car, the math just doesn't work, and even then it takes years. And its going to get harder to do this, dealers are already offereing laughable amounts for SUV trade-ins, if not outright refusing to take them.

And cuz I'm such a geek... I worked out a formula to calculate the time it takes to break even:

Break Even = (TradeIn+PurchasePrice) / (OldGasCostYear - NewGasCostYear)

TradeIn is a negative number, and equals the trade-in value of your current vehicle.
PurchasePrice is a positive number, and equals the purchase price of the new vehicle
GasCostYear is what you spend on gas a year for that vehicle, GasCostYear = GasCost*MilesYear/MPG

An example, trading in a WRX for a Smart Car...

Option A Option B
Miles/Gallon 25 45
Miles/Year 12000 12000
Gallons/Year 480 267
$/Gallon $4.30 $4.00
$/Year Gas $2,064 $1,067
Vehicle Cost $- $15,000
Trade-In $- $(8,000)

It'd take you about 7 years to break even.

And yes, this excludes insurance, personal property tax, maintenance costs...

I'll even attach the spreadsheet, rename to a .xls before opening.
You do not have the required permissions to view the files attached to this post.
Jason "El Zorro" Fox
'17 Subaru Forester 2.0XT
DCAWD - old coots in fast scoots.
User avatar
Mr Kleen
DCAWD Founding Member
Posts: 15034
Joined: Mon Apr 18, 2005 6:46 pm
Location: Wiesbaden.DE

Re: Gas prices drive Geos from clunkers to chic

Post by Mr Kleen »

ElZorro wrote: TradeIn is a negative number...
not for me it isn't. :wink: I have a few thousand in equity in my WRX and I still owe 12 payments. 8)
User avatar
ElZorro
DCAWD Founding Member
Posts: 5958
Joined: Thu Aug 12, 2004 8:00 pm
Location: USA! USA!

Re: Gas prices drive Geos from clunkers to chic

Post by ElZorro »

Its negative in the sense thats how I set up my forumula. :)
Jason "El Zorro" Fox
'17 Subaru Forester 2.0XT
DCAWD - old coots in fast scoots.
chicken n waffles
Moderator
Posts: 6314
Joined: Wed Oct 19, 2005 1:15 am
Location: Alexandria

Re: Gas prices drive Geos from clunkers to chic

Post by chicken n waffles »

ElZorro wrote:forumula
intentional?

freudian slip?
-Ben
Image
User avatar
ElZorro
DCAWD Founding Member
Posts: 5958
Joined: Thu Aug 12, 2004 8:00 pm
Location: USA! USA!

Re: Gas prices drive Geos from clunkers to chic

Post by ElZorro »

I'll take number c) bad typing. :)

(and yes, number and c was intentional)
Jason "El Zorro" Fox
'17 Subaru Forester 2.0XT
DCAWD - old coots in fast scoots.
Post Reply