Savings Section:
Cutting Transportation Costs
Cars certainly aren't getting cheaper, and escalating gas prices are enough to give you road rage before you even hit the streets. You might need a car to move around town, but are you doing all you can to keep it from putting the brakes on your upward mobility? In the March issue, Debt Matters demonstrated the importance of buying a cheap car.
Here are some other tips:
- Steer away from performance tires when shopping for a car. They are more expensive, don't last as long and can raise your insurance rates.
- Choose regular. A lot of people pay for premium gas because they think they are giving their car a treat. That's only true if the engine is designed for it. Premium gas is not better, it's different. If your owner's manual recommends regular unleaded, use it.
- When buying a car, shop for fuel efficiency. People complain about gas prices all the time, but few do anything about them. If your car gets 13 miles to the gallon versus another car that gets 39 mpg, it will take you three times as much fuel to go the same distance. That's like paying $6 per gallon.
- Invest in a bike. For the price of a new fuel pump and wheel alignment, you can probably afford a whole new 21-speed bike. If you're one of the few lucky Americans who can reasonably bike to work, by all means, do it. Pedaling each day will save on gas, parking and maintenance, and provides exercise.
- Wash and wax your car. Wash your car every other week and wax it each season. The finish will last longer and you could avoid some costly body work. But more importantly, you'll keep your car looking good and you'll be less likely to splurge on a new car. Do it yourself and you'll save money, do a better job and get some exercise.
- Change your own oil.
- Raise your insurance deductible. Raising your deductible from $250 to $500 each month should save you a few bucks off your premium. Ask your agent.
- Once you pay off your car, keep making the payment to a savings account designated for your next car. The goal is to pay cash for the next car and save thousands of dollars on financing.
- When buying a car, look for a four door. A four-door is usually cheaper to insure than a two-door. Ask your agent.
- Drive it until it's dead. Postpone buying a new car as long as you possibly can. It almost always makes sense to repair a car than to buy a new one. Besides, few things in life are more satisfying than watching the odometer roll past 200,000.
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