Save $ on Your Car
Want more money? Stop "driving it" down the drain!
Transportation is typically the second highest household cost after housing, at about one-fifth of all spending or over $650 a month, $20 a day, or 50 cents a mile. Invest the average cost of a car instead and in ten years you could end up with nearly $130,000. After 30 years, you'd be a millionaire.
Luckily, even if you keep a car, you can still fatten your wallet using the following tips:
TRAVEL SMART: Go car-lite
Driving everywhere takes a toll in time, money, and even health. The cost of about 15 miles of driving and a couple hours of parking adds up to almost $10.
The following tips can help you can save on gas, repairs and possibly insurance. They might even lower your stress, boost your health, or improve your social life! It's not all or nothing. Try taking one trip a new way.
1. Share a ride and split travel costs with another person and you're instantly paying half price for gas, parking and any tolls-fill up your car, and save even more. Shrink every rider's carbon footprint at the same time. See Ridesharing for more info and tips. Cars are for driving full!
2. Leave your car behind. Try mixing some new ways of getting around into your routine.
o Park farther away. Instead of wasting time looking for the "best" parking spot, park quickly at a distance and get a bit of fresh air and exercise on your way in.
o Let someone else do the driving-take a bus. You can read, sleep or relax along the way. Walk or ride to a stop, or drive to a park & ride.
o Add a bicycle rack to your car and bring your bike to town, where riding can be as fast as a car--but with better health benefits. Or park your car in a meter-free spot and run some errands on foot.
3. Skip a Trip. Sometimes the best way to save on getting around is to stay home! In need of more time and money? Skip a trip a week and you could save $30 or more and free up your time. Here's how:
o Combine trips: save up errands and turn many small trips into one trip.
o Trade favors: offer or ask a friend to pick something up at the store, drop off mail or return library books.
o More people are taking vacations at home, known as "staycations." These can be a blast, and save a bundle. You can find lots of Staycation tips on the internet, such as this article, "Tips for Planning a Great Stay-cation" at ABC news.
DRIVE SMART: Save on gas and repairs
About 30% of the cost of a car or truck goes for gas and maintenance. On top of following the tips above, you can save on car costs by the way you drive and care for your car.
o Get moving - For modern (computer-controlled, fuel-injected) cars, it's best to warm your car by driving slowly, or idle for no more than 30 seconds or a minute, and then drive slowly.
o Stop idling - Idling for more than 10 seconds wears your engine more than restarting your car; two minutes of idling uses the gas needed to drive a mile. Turn off your car for any stop longer than ten seconds and you'll save money, breathe less exhaust and lower your carbon footprint.
o Mellow out - Slamming on or overusing the gas and brakes can lower your gas mileage by as much as 33% on the highway. Slower starts and coasting into stops could save you over $200 a year.
o Slow down and save - Gas mileage usually drops dramatically over 60 mph. Each five mph over 60 mph is like paying an extra 20 cents per gallon for gas.
o 'Lean' your machine - Taking extra weights our of your car and removing unneeded rooftop carriers when not full can improve your gas mileage up to 2% or more.
o Don't be deflated - Tire pressure should be checked at least once a month; tires should be inflated to the number found in your car's glove compartment or door frame (open door to look.) Changing weather can lower your tire pressure, and 10 lbs can decrease your fuel economy by 4%.
o Car care costs less - Regular oil changes, tune-ups, tire rotations, fluid flushes, alignment and brakes checks and air filter changes will prevent needless repairs, improve your fuel efficiency and make your car last longer. Read your owners' manual and/or check with a car mechanic.
o Use the parking brake when parked. Your transmission will last longer.
BUY SMART: Get more car for your money
About 70% of a vehicle's total cost goes to buying it and keeping it legal, whether you drive it much or not. Getting and insuring a car for less means more money in your pocket month after month.
1. Look before you leap. Smart car shopping and buying can mean you get more car for less money. One place with lots of good car-buying tips is The New York State Office of the Attorney General website. It's got tips for both New Car Buying and Used Car Buying (pdf). There is even a section on Auto Leasing Rights and Deceptive Auto Advertising: Recognizing the Hype.
2. Look beyond the sticker price. The lowest price tag will not always save you the most money over the long term. Look up the true costs to own different cars and you'll find that sometimes paying less now can cost you more down the road. Two good sources are Edmunds 'True Cost to Own Calculator' and Consumer Reports.
3. Buy with insurance costs in mind. Daytime running lights, anti-theft devices and other car features can lower your insurance premiums. To help you decide what car to buy, get information from the Insurance Institute for Highway Safety (www. iihs.org).
4. Lower your premiums. You can also lower your premiums by shopping around, getting a higher deductable, taking advantage of low-mileage discounts and more. See the Insurance Information Institute's "9 Ways to Lower Your Auto Insurance Costs" online or get a copy from Way2Go.
5. Get a mandatory discount! Take a defensive driving course and you have a right to a 10% discount on auto insurance premiums for 3 years! See our page on Driving Courses.
6. You can also check out the NYS Office of the Attorney General's section on Insurance Fraud.
* Savings from investing the cost of a car calculated using a $700 average monthly car cost and an 8% annual return on investment, adapted from "How to Live Well Without Owning a Car," by Chris Balish.
* Other statistics and calculations based on information by the US DOE Transportation Energy Data Book and the national Alliance to Save Energy Drive Smarter Challenge.
