Chapter Seven:
How To Reduce Your Gas And
Other Auto Expenses To A Minimum
By using the gas-saving tips you've learned in Chapters Three though Six, you can save a substantial amount of money on fuel each year. If you want to slash your gas expenses even more, consider buying a vehicle that gets better mileage than your present one.
If your vehicle gets 20 mpg and you drive 50 miles each day, purchasing one that can go 30 mpg can save you at least $700.00 on gas each year. And if you buy a hybrid car, which can travel 50 or more miles on a gallon, you can slash your gasoline expenses even more drastically.
In case you're not familiar with hybrid cars, let me tell you what they are. After that, we'll examine whether it makes financial sense for you to buy one.
What Is A Hybrid Car?
Hybrid cars use a combination of a gasoline engine, an electric motor, and a battery pack. The gas engine is small, super fuel-efficient, and provides adequate power when driving on level roads. When extra power is needed, such as accelerating or going up a hill, the electric motor kicks in to assist the engine. The electric motor is powered by batteries that recharge automatically while the car is in motion and never needs to be plugged in.
As you may recall, in Chapter Five, I said one of the reasons hybrid cars get better gas mileage than conventional ones is that the engine shuts itself off when stopped in traffic and comes on automatically when put back into gear. Most hybrid owners don’t even notice this off-on action.
Here are five other unique features of hybrid vehicles:
- They have smaller and more efficient gas engines than conventional ones.
- They have regenerative braking, which means that instead of just using the brakes to stop the car, the electric motor can also slow the car down. In this mode, the electric motor performs like a generator and charges the batteries while the car is slowing down.
- They are made with materials that are lighter than conventional vehicles.
- They have advanced aerodynamics to reduce air resistance.
- They have low-rolling resistance (LLR) tires.
Although all hybrids get better mileage than conventional vehicles, there are two different approaches to the powering mechanism. Some obtain greater fuel economy in stop-and-go traffic, while others do better on highways.
To encourage consumers to buy hybrid vehicles, the government offers a tax benefit up to $4,000.00.
The bad news about hybrid vehicles is that although they’re more fuel efficient than conventional ones, they cost $4,000-$6,000 more. So you need to own a hybrid car for many years to recover the gas savings.
If your cash flow is really tight and your main priority is saving money, I suggest you figure out whether the gas savings will be worth the extra money you’ll have to pay for a new car before buying one (even if your current vehicle is a gas guzzler).
Let’s say you own a car that gets an average of 18 mpg, and you want to sell it and purchase a newer car. You have $7,000 in your bank account, and you’re saving it for a trip to Australia next year. You estimate your car is worth $7,500, so the maximum you can pay for a vehicle is $14,500, which includes taxes and all the extra fees.
You tell yourself that if you can find a great deal on a used car, you will buy it.
You look in your local paper and see a used car listed for $16,000. You phone the seller, who we'll call Linda, and after she tells you that her car is in excellent condition and gets 40 mpg, you set up a time to see it.
After inspecting the car very carefully and test driving it, you really like it. You then negotiate with Linda and she agrees to sell it to you for $13,700. With taxes and miscellaneous charges, it would come to $14,500.
Before accepting her offer, you tell Linda that you would like to discuss the purchase with your wife tonight and get back to her tomorrow.
When you return home that evening, you reason that if you can show your wife the huge amount of money you can save on gas with the new car, then she probably will let you buy it.
You grab a note pad and a calculator and begin crunching numbers. You decide that comparing the annual gas cost of your present car to that of the new one would be the best way.
You drive about 12,000 miles each year and your car gets an average of 18 mpg, and it uses regular gas, which costs $3.36 per gallon (the national average price on April 10, 2008) in your area. Your yearly gas usage is 666.67 gallons. This works out to be $2,240 per year. You figure you can drive your current car for five more years, which would cost $11,200. (assuming the price will be $3.36 per gallon over the next five years).
Next, you determine the fuel expenses for the new car for five years. Since the seller, Linda, told you it gets an average of 40 mph, it would cost $1,008 per year or $5,040 for five years.
While the gas savings will be $6,160 over five years, you’re disappointed that it wasn’t enough to cover the $7,500 you’ll need to pay for the new car. So, since you can’t justify buying Linda’s car, you decline the offer.
As you can see from this example, if you’re thinking about purchasing a newer car simply because you want to cut your gas expenses, it’s a good idea to first calculate the fuel savings and decide whether it’s still worth doing so.
If your current vehicle is running fine and if a mechanic says you can drive it for at least several years without major repairs, it may be better for you to keep it, especially if money is an issue.
Even if you’re presently driving a hybrid, you can use the suggestions in the previous chapters to reduce your gas expenditure. Remember, the way you drive and how you maintain your vehicle will have the greatest impact on your gas mileage.
To find out the gas mileage estimates for various vehicles with model years between 1985 and 2008, visit the Department of Energy.
You can search by class, year, make, or mpg. Because this site contains so much valuable information about automobiles, be sure to check it out before you purchase your next vehicle.
In case you’re considering buying a new or used conventional vehicle, here are more resources for you...
How to save thousands by purchasing cars from government,
reprocessed, and seized auto auctions!
How to find a good new or used vehicle, to get a free price quote,
to obtain a history report on any car, and to learn other
valuable information before buying your next vehicle!
How to inspect a used vehicle properly so
you can avoid buying a lemon!
How to get a car loan at a great rate!
Here are some publications produced by
the FTC that you may find useful:
Buying a New Car. A step-by-step guide that is a helpful tool for bargaining with dealers.
How to Get a Great Deal on a New Car. Negotiation techniques to save money on your next car.
Buying a Used Car. Discusses your limited rights when buying from a dealer or private owner.
Finding the Best Used Car. How to save hundreds to thousands on your next used vehicle.
Understanding Vehicle Financing. Get the facts on dealership financing - what it is, how you apply, special financing offers, cash back and rebates you may be eligible for, and more.
Other Ways To Save Money On
Your Automotive Expenses:
1. How To Lower Your Auto Insurance Premiums:
Keep your driving record clean.
If you have a good driving record, you'll pay a lower premium than those who don't. Here are some additional tips to help you drive more defensively:
- Always wear your seatbelt.
- Drive at or close to the speed limit.
- Never drink and drive.
- Avoid driving at night and in bad weather conditions, if possible.
- Use your horn to get pedestrians' attention.
- Use your horn and lights to get other drivers' attention.
- Pay attention when you hear other drivers' horns.
- For all lane changes, confirm with a visual check and use your mirrors and directional signals.
- To avoid being hit from behind, use four-way flashers to warn drivers behind you of slowed or blocked traffic.
- Watch out for big trucks, buses, and vehicles that make wide turns.
- Watch for cars that are pulling trailers.
- Watch out for drivers who stop or turn without signaling.
- Watch out for pedestrians in school zones or playgrounds.
- Watch for vehicles rushing through intersections at the end of a red light.
- Be careful of drivers who tailgate, especially when traveling on a single-lane road. If possible, pull over and let them pass.
- Be cautious when approaching and leaving four-way stops and unmarked intersections.
- Look behind you before backing out of a parking place.
- Avoid using the cell phone while driving. If you must use it, pull to the side of the road before doing so.
Choose the right vehicle.
When purchasing a vehicle, look for one with a good claims track record. Vehicles that are less likely to be stolen or have lower than average accident rates will cost less to insure. Sport vehicles or luxury models tend to carry higher than average insurance premiums. Since four-door model vehicles are safer than those with two, the premiums are usually lower.
Raise your deductibles.
You can save substantial amounts of money by taking on a little more of the risk yourself. Increasing your auto deductibles from $100 to $500 may save you 10 to 20%. Remember, the lower the deductibles, the higher your premium.
If your insurance company offers a $1,000 deductible, you could save even more money. You can deposit the money you save from your premium into a savings account and use it as your own insurance fund. And if you don't file any claims for several years, you may have enough money to pay for your own auto claims.
Cut coverage(s) on older vehicles.
If you own an older vehicle, consider reducing collision and comprehensive coverage. If the book value of your vehicle is very low, you may not even need collision and comprehensive coverage at all. Your vehicle may have depreciated so much in value that it's not worth paying the extra premiums. Remember, the most your insurance company will pay is your vehicle's book or “fair-market” value.
Keep your vehicle for as long as you can.
When you've put more than 100,000 miles on your car, van, or truck, you pay lower premiums because its book value has decreased substantially.
Take a driver's education course.
Some insurance companies offer discounts, from 5% to 10%, for drivers who have completed a defensive driving course from an authorized driving school. If you (or your spouse or teenage driver) have completed a driver's education course, ask your insurance company for a discount.
Buy more than one insurance policy from the same company.
You may be entitled to a multi-vehicle discount if you buy more than one auto insurance policy from the same company. A multi-policy discount may also be available if you buy two or more insurance policies from the same company.
Get all the discounts you're entitled to.
Ask your insurance agent or company whether you qualify for any of the following discounts:
- Anti-theft systems. If your vehicle is equipped with a car alarm, an ignition-disabling device, or other anti-theft systems, then you may get a discount because these devices make your vehicle more difficult to steal.
- Air bag
- Anti-lock braking system
- Automatic seatbelt
- Good student and out-of-town.
If your teenage-driving son or daughter gets a 3.0 grade-point average or better, ask your insurance company for a good student discount. If your child is attending college more than 100 miles from home, and he or she doesn't have a vehicle covered at school, you may be able to save on the "young-driver premium."
- Mature driver
If you're between 50 and 65 years old, you may be entitled to a mature driver discount.
- Restricted mileage
If you drive less than 7,500 miles a year, you may get a restricted mileage discount.
- Car-pool
If you car-pool, you may be entitled to a 5% to 10% discount.
- AARP membership and other age-related discounts
- Profession-related
Shop around
If it's been a few years since you compared your present auto policy with what's available, you could be paying too much.
Click here to check whether you're getting a competitive price for your current auto insurance.
2. How To Save Money On Automotive Repairs:
As mentioned, most people overpay for their repairs, which can amount to hundreds of dollars each year. Here's how you can avoid doing the same thing.
Click here to find the parts you need for your vehicle.
How To Save Even More Money And To Make
Extra Income From The Comfort Of Your Home!
In addition to showing you how to save money on your gasoline and other automotive expenses, I’ve discovered many ways to help you reduce your household expenses, as well as make hundreds to
thousands of dollars in extra income each month. Check them out.
Picture how much better your life will be when you can have an extra $500.00 to $3,000.00 or more each month to spend on whatever your heart desires.
In Chapter Eight, you'll discover...
How To Benefit The Most From This Book
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Here’s How You Can Help Make A Difference...
If you enjoy reading my book and feel your friends, family members, co-workers, neighbors, classmates, teammates, and other folks you know, would be able to benefit from it as well,
please inform them. You can do so by scrolling to the top of this page and clicking on the "Tell A Friend" button located at the right side.
By doing so, you will help:
- Your friends save money.
- Reduce air pollution, making our planet a more pleasant place for all of us to live.
As I’ve shared with you, driving less and improving the gas mileage of our vehicles will decrease the amount of harmful emissions that our automobiles put into the atmosphere.
To learn in detail why fuel economy is important for all of us, visit the EPA’s website.
You can help more people find out about my book by telling your local newspapers, magazines, and TV stations about it. And, if you have customers, clients, members, patients, subscribers, readers, or viewers, let them know about it as well. They will appreciate you.
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Here Are The Other Chapters:
Chapter 1: How To Cut Your Gas Expenses Significantly And Help Reduce Air Pollution
Chapter 2: How To Start Saving Money On Gasoline By Determining Your Mileage
Chapter 3: How To Slash Your Gasoline Consumption By Planning Your Trips Carefully
Chapter 4: How To Lower Your Fuel Expenses By Keeping Your Vehicle In Good Condition
Chapter 5: How To Have Extra Money To Spend By Driving Economically
Chapter 6: How To Save Money By Purchasing Gas Strategically
Chapter 8: How To Benefit The Most From This Book
If you live in Canada (or a country that uses the metric system), see the Canadian version.
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