Money-Saving Tips to Cut Your Auto and Gas Costs
By Remar Sutton, DCU StreetWise Spokesperson
As if the economic times haven't been tough enough, unleaded regular topped $2.10 per gallon in some major urban areas. According to AAA, retail gas prices are about fifty cents more per gallon than they were this time last year. That fifty cents can add up quickly into lots of dollars. But, with some attention to the following tips, you can do a lot to keep your costs for gasoline and for operating your vehicle as low as possible.
Saving on gasoline
No matter whether you drive a compact that averages 30 mpg or a SUV that averages 13 mpg, you can cut gasoline costs by paying attention to where you buy gas, how you maintain your vehicle, and how you drive it.
Buying gas tips
- Buy the grade gasoline the manufacturer recommends for the vehicle. Putting plus or premium in a vehicle designed to run on regular just sends $$$ out the tailpipe. If your vehicle knocks severely on the recommended grade (not just occasional pinging under a load), then have it checked for tune-up or other potential problems.
- Comparison shop for cheaper prices. Some cities have web sites where consumers post their finds of stations with cheaper prices. You may find a link to your area on the EPA's fuel economy web site.
- Use bargain brands of gasoline. "No name" gasoline is usually of the same quality as that of national name-brand stations, but often sells for less.
Maintaining your vehicle
Some recommendations and figures from the EPA:
- Tune-up your vehicle on its recommended schedule. A vehicle that is badly out of tune can up your gas consumption by 4%.
- Replace faulty or failed oxygen sensors immediately. Your vehicle may run with a bad oxygen sensor, but replacing it can increase your fuel economy up to 40%.
- Clean or replace clogged air filters. A clogged filter can lower your mpg by 10%.
- Keep tires inflated to recommended pressures. Under-inflated tires burn more gasoline. Each two pounds (psi) tires are underinflated increases gas consumption by 1%.
Drive efficiently
- Avoid idling for more than 30 seconds. Beyond that time, experts say it's cheaper to turn-off the engine and go into the establishment rather than through the drive-thru.
- Smoothly does it. Avoid jack-rabbit starts and stops and aggressive driving. Smooth acceleration and stopping, and refusing to weave aggressively through highway traffic first speeding up then braking suddenly can save you up to 33% at highway speeds and 5% in town, according to the EPA.
- Watch your speed. Or pay the equivalent of about 10 cents a gallon for every 5 mph over 60 mph you go, says the EPA.
- Combine errands. A warm car uses less fuel than a cold one. So combine trips and errands whenever possible. Also modern cars are engineered to warm up on the go, so you need not sit for several minutes warming it up.
Saving on auto insurance
The same amount of auto insurance on the same vehicle does not always cost the same from different companies. Also the cost of insurance varies widely between makes and models of vehicles.
In a study published in October 2002, Consumer Reports found some unexpected differences. A consumer might expect to pay more to insure a luxury SUV as compared to a modest sedan, but the study found surprising differences between various model vehicles in the same class. For example, coverage from the same insurer for the same drivers for a 2002 Dodge Neon ES cost $1,565 per year compared to $1,087 for a 2002 Saturn SL2. The study also found large differences between insurance providers.
The reasons for such differences are too lengthy for this Review, but the conclusion is that it pays to comparison shop for insurance rates from time to time. DCU Financial Insurance Services can check your policy against several carriers and tell you if you can save money by switching. Some general tips for saving on auto insurance include:
- Comparison shop rates for your vehicles from two or three providers.
- For collision coverage, carry as high a deductible as you are comfortable with.
- For an older vehicle, consider dropping collision and comprehensive coverage. Caution: Always keep adequate liability coverage.
- When shopping for a new vehicle, compare the insurance costs of each model on your short list of favorites before settling on a final choice.
Consider potential operating costs when buying a new vehicle
If you are in the market for a new vehicle, or soon will be, you can save yourself a bundle by selecting a vehicle that meets your driving needs but is also easier on your wallet. Consider these factors.
- Buying used. Selecting a one- or two-year-old model of the vehicle you like can offer tremendous savings on retail price, sales taxes, property tax/tag fees (depending on your state), and insurance costs.
- Consider and compare fuel economy. Let's compare a gas sipper with a gas guzzler for a consumer who drives 12,000 miles per year. The annual fuel cost at $2.00 per gallon for a vehicle that averages 30 mpg would be $800, for a vehicle that averages 12 mpg, $2,000. The difference is $1200 annually, or $100 a month. Many gas sippers also have good crash and safety ratings. Check out fuel consumption for new and used cars after 1985 on the EPA's web site: www.fueleconomy.gov. Up to 4 vehicles at once can be compared side-by-side.
- Compare after-purchase operating costs. How much will it cost to insure the vehicle, buy gas, maintain it, insure it, repair it, and pay annual taxes on it? Edmunds.com has a True Cost to Own (TCO)SM calculator that can give you an estimate of these costs to use for early comparison. For greater accuracy, you'll want to research individually the components, particularly the insurance, fuel consumption, and annual ad valorem/property tax (as applicable in your state.)
So, what do you think?
If you find this review helpful, please pass the word to your friends. Also email me with any comments or suggestions. Remar Sutton
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