Save-Money-on-Transportation: Personal Finance News from Yahoo! Finance

Save Money on Transportation

The average cost of owning and driving a car 15,000 miles a year is $7,830 according to AAA. SUVs are even more costly, at $9,990 per year. That includes all costs of ownership, such as gas, insurance, maintenance, registration, taxes depreciation, financing and more. Yikes.

No doubt getting around can be a huge budget buster. Here are ten tips to help cut your costs:

Buy a Used Car

Because cars lose most of their value in the first few years, buying used allows you to drive a vehicle you probably couldn't afford brand new.
Recent used models -- those that are less than five years old -- can be a real value because you get a nearly new car still in fine working order for a fraction of the new-car price. And you'll pay less for collision insurance and taxes, too.

Buy a Sipper, Not a Guzzler

You don't need a hybrid vehicle to save money on gas -- higher purchase prices can cancel out any savings. But a regular car with good gas mileage could save you hundreds of dollars a year on fuel.

Drive 1,200 miles per month in a car that averages 18 miles per gallon, and you'll spend $187 per month (at $2.80 per gallon).

Drive a car that averages 25 miles per gallon, and you'll spend $134 per month -- a savings of $53 per month, or $636 per year.

Re-Shop Your Car Insurance

Using a comparison site like InsWeb.com can help you determine if you've got the best deal. Rates vary widely from insurer to insurer. Your savings could equal hundreds of dollars.

Shopping around is especially important for young adults because their rates could drop as they approach age 25 or older, build a credit rating, start a career and get married. Insurers reward customers who are responsible.

Drop Collision & Comprehensive Coverage

If you drive a beater -- say, one worth less than $2,000 -- you'll probably pay more to insure it than you would ever collect on a claim. Dropping that part of your coverage can reduce your premium by one-third.

Raise Your Deductible

Upping your out-of-pocket outlay from $250 to $1,000 on any car can save you 15% or more on your car insurance.

But make sure you have enough cash in an emergency savings account to cover your deductible so you won't have to rely on costly credit cards to bail you out.

Join Policies

When shopping around for auto insurance, check first with the company that provides your renters or homeowners insurance. You could snag up to 15% off for a multiple-line policy.

Shop Around for Gas

Gas prices can vary as much as 20% within only a few blocks, according to GasBuddy.com, a price-monitoring site. So hop online to find the best deal in your neighborhood or along your commute route.

A 20-cent difference on 60 gallons of gas per month adds up to $12 per month or $144 per year.

Use a Gas Rebate Credit Card

If you frequent the pump, soften the financial sting with a credit card that'll give you cash back for filling up.

For example, the Discover Open Road card gives you 5% cash back on gas and auto maintenance charges. So if you spend $200 a month on gas and maintenance, you get $10 back -- or $120 each year.

Hop on the Bus, Gus

Public transportation can save you a bundle on commuting costs because you won't have to spend money on a parking space, gas and auto maintenance. Plus, you can probably get a lower insurance rate for driving less.

Ask if your employer will pick up part of the tab for your public transportation costs. If not, suggest the company look into the matter -- it could qualify for a tax break.

Car Pool

Two heads are better than one when it comes to commuting. Sharing the ride -- and expense -- with another person heading your way can cut your gas costs in half.

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Life isn't about waiting for the storm to pass~ It's about learning to dance in the Rain

Also keep your car maintenanced!

And I 110% agree withte insurance tip!
Last week I decided to shop around for new auto insurance b/c DH has a speeding ticket from 3 years ago that is due to fall off this month, by doing my homework and comparing rates I am now going to save $60 a month on my policy ( over $700 a year!) on my auto insurance and I am also picking up a new homeoners policy with them for $10 less a month...and for more and better coverage

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Life isn't about waiting for the storm to pass~ It's about learning to dance in the Rain

Does anyone have a credit card that gives cash back for gas? I'd love to get one.

I tried to talk my dh into taking the Rapid Transit Train to work, but then I rode it with the kids to go visit him and it was a long ride. His traveling time would be forever! I miss when he worked 10 miles from home,espically with the price of gas! The ony good thing is we have our car paid off so not monthly payments

I sure wish we had better public transportation. Here it is a joke. When I lived closer to the beach with my parents I rode the train to college most days and it really saved money (65 miles round trip). Now I live "out west" LOL and we have nothing. The buses come when they feel like it (it seems) and going with my kids is a nightmare. I would do it if we had it and it was reliable.

We do have a good public transit system, but dhs office moved pretty far away and its really just the time he could drive to the train (not far) but then it goes downtown and he would have to change to another train which is another 1/2 hr then walk a few blocks Oy. However when he was downtown a bus would have taken 1/2 hr tops!

Sorry you dont! You would think more places would espically with the price of gas....

I have a Discover Cashback Bonus Card. It gives 5% back on gas, and 1% on most other things you buy. I wrote GAS across the front of the card with a marker, so we remember to use that card. Whenever you accumulate $20 in credit, you can go to the website and have them put the credit on your card (that's what I do), or have them send you a check.

I'm a big believer of doing things locally whenever possible, and that was a factor in choosing our current home. Within 1/2 mile I can walk to the grocery store, pharmacy and bank. Within 2 miles I can hit the bakery, 2 dry cleaners, most any fast food, Costco, Target, and my yoga studio. I had a 45 minute drive to work the last 6 years but I finally moved to a different building in December and my commute is now....3 miles! Of course,my whole group has been moved to downtown Detroit, but I told them I won't go. It's 70 minutes each way - 37 miles. And I would have to pay Detroit city taxes. No way.

Anyway, I'm just trying to stick to stuff closer to home. I used to go to a salon about 20 miles away for my eyebrow waxing. Found another a mile up the road. I used to go 35 minutes away for the dentist, as I went to him since I still lived at home w/ mom -- but last year I found one 10 minutes from the house. I really like not being in the car so much.

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I wish I would've been given this list in my early 20s We've learned the hard way.

I agree with Calimari about doing things as local as possible. I will be so happy next year when I only have to drive my daugther 6 minutes to school instead of 20.

Thank you for all the good tips! We actually have done some of them. I really want a newer car, but then I think about the costs and change my mind. We haven't had a car payment in years and our insurance is so cheap compared to alot of others. Of course our vehicles are considered "old" now, but I don't care. I told my DH that we will get a new one when his (95 civic with ~240,000 miles) dies or before we have to pump alot of money into it. I swear those (civics) are the best cars out there......

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