Lower Transportation Costs

tips to reduce transportation costs

Transportation costs include fuel, auto insurance and repair services and is generally around 9-12% of your gross monthly income. With the rising cost of energy and auto purchases, it's a first good step to reduce transportation costs by shopping price and doing-yourself-repair.

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Lowering Your Auto Payments

You should look into auto refinancing

Check the current interest rate on your existing auto loan(s). You might might be able to reduce your monthly payments by refinancing your auto loan at lower interest rates:

Apply now and let's search
for the right lender
or dial toll-free:
1-877-777-1370

Home Improvement Financing

 

Another option is to payoff your existing auto loan balances with a home equity loan

Home equity rates are as low or lower than many auto refinancing rates. Plus, you can extend the repayment term to significantly lower your monthly payment if needed.

Also note that home equity interest rate charges qualify for tax deductibility — another way to reduce your monthly costs if you qualify. See your tax advisor for information.

YourEquity: view home equity options for auto refinancing

 

Getting out of your lease

you may need to get out of lease to save on costs --
there are options:

 
leasetrader swapalease

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Taking a Bite Out of Insurance

Driving safely is the best way to reduce insurance costs. The more driving tickets, the higher your premiums

Insurance rates are determined by a number of factors including your driving record, members of your family, the car you drive, your marital status, where you live, age, gender, and in some cases, your credit history.

The best way to lower your insurance premiums is to compare and shop around (especially if one of your life factors change like getting married).

 

Direct insurance programs pass the savings onto you

The insurance premium has two components. One part goes to the insurance underwriter (85-90%); the other part goes to the insurance agent that sold you the policy (10-15%).

So cut out the middle man and buy your auto insurance directly from the insurance company. You could possibly save anywhere from 10-15% or more on your insurance premiums.

Compare insurance plans online:

 
insure web amica
netquote allstate
progressive farmers
geico nationwide

 

Bundle your insurance needs

Another way to reduce costs is to bundle your insurance policies with one company.

Example, if you have your home insurance with Company A and your auto insurance with Company B, compare the cost between the two companies if you bundled your insurance policies with one company.

Compare these costs with other insurance providers.

View company financial ratings: ambest.com

Make online comparisons with multiple providers to estimate best cost:

 
insure web amica
netquote allstate
progressive farmers
geico nationwide

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Reducing Fuel Costs

Fuel economy tips from fueleconomy.com:

These fuel economy tips can save $100s each year:
 
driving more efficiently
keeping your car in shape
planning and combining trips


Also check out other ways to save on fuel:
www.ftc.gov

 

Use lower octane

Check the octane requirements for your vehicle. Less than 10% of vehicles require higher octane fuel, which can average about $0.20 cents more per gallon.

More information about high octane use

 

Shop your gasoline

Shop around for the less expensive gas:
Search and compare gasoline prices

or use GasBuddy to search gas prices by city:

 

Join a club membership group

Membership warehouses often offer reduced gasoline prices for its members. Check for a club membership in your area:

 
SamsClub Costco
BJs  

 

Buy a more fuel economy car

 
Search and compare fuel consumption by model
Search for cars that don't need gasoline

 

Auto showroom:
link directly to our CarSurfer auto showroom for a line-up of autos (new and used) and consumer auto guides

 

Use a gasoline rebate credit card

Earn up to 3-5% rebates on gasoline purchases. Redeem rebates for future gasoline purchases.

View credit card list

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Keeping Your Auto Serviced

Keeping your car serviced can prevent high repair costs later on

A little preventive maintenance can keep your auto going:

 
View this service checklist
Auto maintenance tips

Auto service center:
link directly to our auto service center for complete auto care and auto maintenance guides

 

Perhaps you repair your own cars. Shop online and retail auto repair parts:

You get the lowest prices, best quality auto parts, and the most helpful automotive technical reps.

 
Checker Auto Parts @ PerfectAutoParts.com
DIAL-A-CLUTCH.com for LuK standard clutches
Mustang and Other Classics Parts & Accessories

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Consider Warranty Coverage

Purchase your "added" auto warranty independent of your auto dealer to avoid the dealer markup cost

An "added" warranty is a warranty provision that is added to the standard manufacturer warranty. You might consider purchasing an "added" warranty contract (in addition to the manufacturers warranty) to protect against major vehicle repairs.

Don't buy your "added" warranty coverage from an auto dealer. The markup from the dealer can average 50-100% more than if you were to buy independently.

Keep in mind that the fine print and other exclusions may not justify the cost. Run your numbers to justify your coverage costs.

Places to start:
auto warranty buying guide
facts for consumers: auto service contracts

Find your warranty:
link directly to our auto center for auto warranty quotes

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Taking Public Transportation

Public transportation frees up time to read and increase your knowledge skills

You can reduce fuel consumption costs plus relieve yourself of driving stress by car pooling and taking public transportation:

 
Find public transportation in your area
Find ride share buddies in your area
Check your local area for ride share information

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Other "Modes" of Getting Around

Need to start exercising? How about cycling to work.

You can reduce fuel costs by roller blading, biking, motor scootering, and even motor biking to work, school, shopping, etc.

LetsRenovate:  Link to our Garage Center for product info

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Thinking of Getting a New Car

Taking on New Car or Truck

Beware of depreciation (which can vary by car).

How depreciation works?

A car loses about 15-20 percent of its value each year. For example:

  1. Let's start with a 1-year old used car worth $15,000 that loses 15% of its value each year.
  2. At 2 years old, the car value is worth $12,750
    (85% of $15,000).
  3. At 3 years old, the car value is worth $10,838
    (85% of $12,750)

 

So what is the value of a new car

You can lose thousands once your drive your new car off the dealer's lot. Why?

Because the price you paid for the car is the retail price (not counting the taxes and licensing that are sunk costs). If you drove that new car back to the dealer, the most the dealer will pay is the wholesale price (the same price he would pay the manufacturer).

So your value drops instantly from the retail price to the wholesale price once you take possession. That drop could be in the thousands depending on the type of car and model.

 

So what not buy used

You will be paying for the market value of the car instead of dealer markup.

Some 1 year-old cars are great values that can save you thousands in financing costs. Get the facts:

 
consumer guide vehicle history report
Kelley Blue Book
www.carfax.com

 

Some places to look for used cars:
link directly to our CarSurfer auto showroom for a line-up of autos (new and used) and consumer auto guides

 

Should you lease to reduce costs

Leasing is simply a 3-yr or more rental agreement. You are renting the car for a period of time that you will return at the end of your leasing agreement.

The advantage of leasing is that the monthly payments are significantly lower than financing.

The disadvantage of leasing is that you will not be building any equity value. You don't own anything.

The financial advantages and disadvantages of leasing will vary by person and circumstances.

  1. If you are a person who must drive a new car every 1-3 years, then leasing may be your best financial option.
  2. If you are a person who likes to replace your car every 5 years, then either leasing or financing will be your best financial option.
  3. If you a person who likes to drive the same car for 7 or more years, then financing would be your best option.

 

Lease Information

 
For information about leases: click here
Find the right lease without paying dealer markup: click here
Compare leases for best lease: click here

Take Over or Swap Your Lease

 
leasetrader swapalease

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