Saving money on transportation
costs
by Chemain
Evans
It seems like we're always on the go
these days. Whether traveling across the country (or the world) or
across town, there are ways that you can get more travel out of your
transportation dollars.
Airline Fares
Undeniably, the airlines are both the
fastest and the most expensive way to travel far distances. You may
lower the price of a round trip air fare by as much as two-thirds by
making certain your trip includes a Saturday evening stay over, and by
purchasing the ticket in advance. Many airlines divide up the seats on
their flights into price categories. The cheapest ones sell first so
it pays to shop early. To make certain you have a cheap fare, even if
you use a travel agent, contact all the airlines that fly where you
want to go and ask what the lowest fare to your destination is. Be
flexible, if possible. Consider using low fare carriers or alternative
airports and keep an eye out for fare wars.
Car Rental
Since car rental rates can vary
greatly, shop around for the best basic rates. Ask about any
additional charges (extra driver, gas, drop-off fees) and special
offers, such as free upgrades. Rental car companies offer various
insurance and waiver options. Check with your automobile insurance
agent and credit card company in advance to avoid duplicating any
coverage you may already have.
New Cars
You can save thousands of dollars
over the lifetime of a car by selecting a model that combines a low
purchase price with low financing, insurance, gasoline, maintenance,
and repair costs. Ask your local librarian for new car guides that
contain this information. Having selected a model, you can save
hundreds of dollars by comparison shopping. Call at least five dealers
for price quotes and let each know that you are calling others.
Most car dealerships and their
salespeople have quotas and deadlines to meet, often on monthly and
quarterly schedules. You'll probably get a better deal on the last day
of the month than on the first day. September can be a great time to
buy a current year model because the dealerships want to make room for
the coming year's vehicles. December is also great because it's the
end of the year and, in colder areas at least, car sales are usually
in a slump.
Finally, remember there is no
"cooling off" period on new car sales. Once you have signed
a contract, you are obligated to buy the car.
Used Cars
Before buying any used car you need
to compare the seller's asking price with the average retail price in
a "bluebook" or other guide to car prices found at many
libraries, banks, and credit unions. If needed, ask for help in
deciphering the information. Next, have a mechanic you trust check the
car, especially if the car is sold "as is." You don't want
to be driving away with a cracked head gasket, or something even
worse! Consider purchasing a used car from an individual you know and
trust. You are more likely to get the car for a lower price and have
any problems with it pointed out to you.
Auto Leasing
Don't decide to lease a car just
because the payments are lower than on a traditional auto loan. The
leasing payments may be lower because you don't own the car at the end
of the lease. Leasing a car is very complicated. When shopping,
consider the price of the car (known as the capitalized cost), your
trade-in allowance, any down payment, monthly payments, various fees
(excess mileage, excess "wear and tear," end-of-lease), and
the cost of buying the car at the end of the lease. Keys to Vehicle
Leasing: A Consumer Guide, published by the Federal Reserve Board and
Federal Trade Commission, is a valuable source of information about
auto leasing.
Gasoline
Did you just about die from sticker
shock the last time you filled up? You can save hundreds of dollars a
year by comparing prices at different stations, pumping gas yourself,
and using the lowest-octane called for in your owner's manual. Pay
cash at stations that charge extra for credit cards.
Don't top off the gas tank. First of
all, it's dangerous! Second, too much gas will just slosh or seep out.
Why waste those extra pennies? Tighten up that gas cap. Make sure it's
on securely. Buy a new one if your current cap doesn't fit snugly. Gas
easily evaporates from the tank if it has an escape.
You can save up to $100 a year on gas
by keeping your engine tuned and your tires inflated to their proper
pressure. Get regular tune-ups and follow through with routine
maintenance. A well-tuned engine burns less gas. Underinflated tires
waste fuel and wear out the tire tread. Also, check tires regularly
for alignment and balance. Remove snow tires in good weather. Deep
tread and big tires use more fuel.
Clean out your trunk. Excessive
weight in your trunk causes your car to use more fuel. For every extra
250 pounds your engine hauls, the car loses about one mile per gallon
in fuel economy. Carry only the basic emergency equipment and items
you really need.
Buy a fuel-efficient car. When
pricing cars, factor in long-term fuel costs. Keep in mind that,
though you may like the wind blowing through your hair, sunroofs add
to wind resistance, lowering the mileage per gallon. Also, be smart
with the air conditioning. Air conditioning can lower your fuel
economy by 10 percent to 20 percent. On the highway, closed windows
decrease wind resistance, so run the air conditioner. But in
stop-and-go traffic, shutting off the air conditioning and opening the
windows can lighten your fuel use.
Car Repairs
Consumers lose billions of dollars
each year on unneeded or poorly done car repairs. The most important
step that you can take to save money on these repairs is to find a
skilled, honest mechanic. Before you need repairs, look for a mechanic
who is certified and well-established, has done good work for someone
you know, and communicates well about repair options and costs. Asking
friends, family, and coworkers who they use is probably the best way
to find a good mechanic. In addition, preventative maintenance is the
operative phrase here. You know the saying: "An ounce of
prevention is worth a pound of cure." Take care of those minor
problems before they become major ones!