In this scenario, we looked at alternatives to a full-sized Chevrolet Tahoe with V8 engine that got 13 mpg in our tests, and to a truck-based V6-powered Ford Explorer that got 15 mpg. With high gas prices, owners of both vehicles are experiencing significant costs due to low fuel economy and significant depreciation. To ease their transition, we set them up with an eight-passenger, 17-mpg Honda Pilot—a well-rated model that requires few compromises in terms of seating and performance. (With a redesigned Pilot launching this fall, customer incentives might become available for the current model.) But the fuel economy gains are not nearly enough to offset the Pilot's depreciation and tax costs when trading in one of these 2005 models after only three years. Even moving to the smaller, 22-mpg RAV4 V6, these owners won't be able to overcome the heavy depreciation hit in the first few years. It would take a lower purchase price and greater fuel economy to make this trade-in equation work. But as gasoline prices rise, those fuel-thirsty SUVs might continue to depreciate and even become difficult to sell in a market certain to become saturated in large, undesired vehicles. Those owners shouldn't rush—instead taking the time to find the right model for their transition.




Pickup trucks

Downsizing a pickup truck might be difficult for many owners who bought one based on their towing and cargo needs. We started with the popular Ford F-150 crew-cab 4x4, which is only available with a V8 engine. For this analysis, we leapt from full-sized to compact pickups. For some owners, a natural decision might be to move from a crew-cab V8 to an extended cab V6 next time. But even with the significant compromises that come with downsizing to a compact model, the fuel economy gains are modest. Neither the four-door Nissan Frontier nor Toyota Tacoma paid off in this early-trade scenario. For consumers who do not tow and rarely use the cargo bed, the real alternative here might be to purchase a conventional car and rent a truck as needed. The fuel savings alone could cover a few overnight rentals a year, with money to spare.