Cut The Costs Of Driving (In Six Simple Steps)

Gas prices keep going up, up, up and we’ve seen nothing that makes us think they’ll ever go back down. If you cringe every time you pay up at the gas pumps, you’re probably already looking around for ways you can cut your fuel consumption.

But take a step back and consider this—fuel is not the only cost of driving. If you look at the total picture—everything you spend to keep you car on the road—you’ll easily see that there are other areas where you can save on expenses.

The six tips we present here can’t make the price go down at the gas pump—we’re beginning to believe only divine intervention can do that!-- but they can help you significantly reduce what you spend to own and operate a car. Using any or all of these easy-to-adopt suggestions will go a long way toward keeping more of your money right where it belongs—in your own wallet!

1. Take Good Care Of Your Car….. Begin by going back to the basics of your driving handbook. Make sure your car is well tuned, that the air filter is clean and that the tires are inflated according to their manufacturer’s recommendations. These simple measures alone have been shown to reduce fuel consumption by as much as 20%. When you’re on the road, avoid jackrabbit starts and jam-on-the-break stops.

Drive slower! Your vehicle burns more fuel when you drive fast. Some experts say 55 is the most fuel-efficient road speed. Paying attention to the speed limit will save you money on gas—and possibly even traffic tickets.

2. Get Price Comparisons On Auto Insurance….If it’s been awhile since you shopped for auto insurance, you owe it to yourself to get quotes from a number of different companies. Thanks to the internet, it’s very easy to find competing auto insurance companies and do some comparison shopping. Many insurance companies will deliver a chart showing their estimate right along side estimates from their competitors when you request a quote. If you’ve been doing business with the same insurance agency for years, let your agent know you’re doing some comparison shopping. If they’re serious about keeping your business, they may be willing to offer you discounts or suggest other ways to lower your auto insurance expenses.

3. Revisit The Way You Financed Your Vehicle… Whether you lease or own your vehicle, it’s likely you have it financed and are making monthly payments. And all too often, the payment plan you make at the dealership—when all you can really think about is taking possession of that beautiful new car—isn’t made with your best financial interests in mind.

Now’s a good time to take a cold, hard look at what you’re paying each month. Find out if you can save money by restructuring your lease agreement or refinancing your car loan. If you do refinance, your old loan will be paid off in full and replaced with a brand new loan. This means the new loan will be for a lesser dollar amount, and if you’re lucky, even a lower interest rate. This could save you a considerable amount of money over the life of the loan and also give you a lower monthly payment.

4. Purchase An Extended Warranty …..Keeping your vehicle well maintained will help you save on fuel costs, but that maintenance itself is one of the biggest expenses of driving. Purchasing an extended warranty is one way to control what you spend on maintenance while also ensuring that your vehicle is always in tip-top shape.

Yes, an extended warranty can seem like an expensive add-on when you’re buying a new car, but consider this: a single major repair can easily cost more than you will spend on a one-year extended warranty. Consider, too, that vehicles need more and more maintenance as they age. If you plan on owning your vehicle for several years, an extended warranty can bring you a significant savings. To get the best price on an extended warranty, purchase it when you buy the vehicle or before the original manufacturer’s warranty expires—usually after 3 years or 36,000 miles.

5. Organize Your Own Mass Transit…some of us just will not, or can not use buses, trains or subways to run our errands and get to work. But if you have family, friends and neighbors who visit many of the same shops you do every week, you could easily organize your own form of mass transportation. Make up a list of the places you visit most often and invite neighbors and friends to do the same. Then compare your routes. If several of you visit the same mall every week, you could easily carpool and share the cost of the trip. You’ll all save money, with the added bonus of being able to spend more time with the most important people in your life.

6. Know Your Gas Mileage…Check with your dealer or look online to see what the official estimated mpg—the “miles per gallon” –rating is for your vehicle. Use the current cost of gas at the pump to determine how much it will cost you to drive one mile. Before you get in your vehicle, think about where you plan to go and calculate how much it will cost to get there. You’ll be amazed at how much you can reduce your driving once you know that you’re actually spending $5 just to pick up milk at the convenience store.