I'm selling my car to buy a more expensive one - Say What?!!!

I drive about the average for an American 12,000 miles per year. My current ride is a 2008 Lexus IS 250. It gets precisely 25 mpg using 91 Octane (premium) priced at an average of $3.69.

• $3.69 per gallon (premium 91 octane)

• 25 mpg

• 12,000 miles per year

• Total of 480 gallons per year

• $1,771.20 in fueling costs per year

Income:

My mileage is tax deductible when traveling to my rental property. = 3,000 miles per year

My mileage is expensed when driving to work meetings at the standard $0.54.5 cents per mile

My new car choice 2010 Toyota Prius at $14,000 with under 36,000 miles is the goal

• 50 mpg

• 12,000 miles per year

• $3.49 per gallon (regular 89 octane )

• 240 gallons total per year

• $837.60 in fueling costs per year

The Toyota Prius saves $933.60 per year on fueling costs.

The return on investment for a 2010 Toyota Prius

• +$3,500 difference in purchase price vs. selling current car

• 45 months to recoup new cars cost

Since my work expenses my miles, If I can increase my MPG I will directly increase the amount of money that goes into my pocket vs into fuel. Work would be paying $0.54.5 for 3,000 miles on average each year = $1,635 paid by work in fuel.

Work Trips

Lexus

• 25 mpg

• 3,000 miles per year

• $3.69 per gallon (premium 91 octane )

• 120 gallons total per year

• $442.8 in fueling costs per year

Prius

• 50 mpg

• 3,000 miles per year

• $3.49 per gallon (regular 89 octane)

• 60 galls total per year

• $209.40 in fueling costs per year

So long as I keep the Prius for 45 months I’ll have broken even. Since I plan on buying a low mileage used Prius, I don’t think there will be any problem with that car lasting three years. There you have it, I’m selling my paid off Lexus for a new car. I’m pretty sure that’s against the FIRE movement philosophy, since I’m selling it with only 50,000 miles on it and it’ snot beaten to a fiery pulp.