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.
Page Topics:
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
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
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
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.
Shop your gasoline
Shop around for the less expensive gas:
Search and compare gasoline pricesor 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.
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
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 contractsFind your warranty:
link directly to our auto center for auto warranty quotes
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
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
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:
- Let's start with a 1-year old used car worth $15,000 that loses 15% of its value each year.
- At 2 years old, the car value is worth $12,750
(85% of $15,000).- 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.
- If you are a person who must drive a new car every 1-3 years, then leasing may be your best financial option.
- 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.
- 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