All you finance experts

[Carolina]

Hubby wants to save $$, and thinks a good start would be to sell his F150 truck (30,000 miles) and buy a Hinda Civic. However, we do still owe quite a bit on the truck loan - 3 yrs and $19,300 to be exact. And the dealer only offered $16,000 as a trade in, so we would take a $3300 loss to start. The dealer told us that a new Civic would be (for example) $365/month for 5 years.

To me, the best way to compare the cost of the vehicles would be to calculate the operating costs of each vehicle over a 5 year period - including gas.

For the truck: $19,300 (loan) + $50/week (gas)x 52(weeks) x 5 yrs = $32,300

For the Civic: $365 payment x 60 months + (3300 loss on truck loan) + $25/week (gas) x 52 weeks x 5 yrs = $31,700

Thus, over the next five years, purchasing a new Civic (and allocating a gas savings of half over the truck) - we would save only $600 over that period. Obviously, this is not a substantial savings despite the fuel economy of the smaller car.

We consulted with a relative about the numbers, as he is a finance nut - he used a whole bunch of complex equations which I honestly had a hard time following. And he came out with the new car saving us thousands of dollars. Considering that I love and respect this person, I don't want to disrespect him, but think my numbers are much simpler - and correct!

Thoughts?