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Wednesday, March 18, 2009

How can I save money on gas?

With gas prices reaching record levels, it's more important than ever to keep tabs on your gas spending. Although one of the easiest ways to save money on gas is to shop around, by using this web site. But there are a number of other things that you can do to keep some of that hard earned money in your pocket, instead of big oils'.

Change the way in which you drive. Many people burn much more gas than they have to. By making a few small adjustments in the way that you drive, you can see considerable fuel savings. Most vehicles today are set to achieve opimal fuel economy around 55mph. If you drive too fast or too slow, you won't be able to maximize your fuel savings. Also, don't accelerate or brake too hard - this is very hard on fuel economy. See GasBuddy.com's top ten fuel saving tips.

Learn where to find the cheap gas. In most regions, you will find the cheapest gas prices in the same areas. In major metro areas, this seems to be outlying suburbs. It is best to avoid affluent areas when looking for a cheap fill. People in these areas are less price sensitive, and the gas stations realize this fact. Not only that, the gas stations are located on more valuable land, and land taxes will be higher. They pass on these higher costs to customers. Gas stations near major freeway exists can be more expensive that stations further away. It can pay to drive a few blocks from the freeway to find a deal.

Find the right type of station Some stations are always the price leaders in the area. Often times wholesale clubs, grocery stores or department stores with gas stations will sell gas close to cost or at a loss (loss leader), in order to get people into the stores where they may buy other, higher margin items. Some of these places require memberships. The cost of the membership must be factored into the price. Some of these stations also give you a credit for in store purchases when you fill up with gas. This can result in considerable indirect savings. Service stations, with an auto repair shop on site, often have more expensive gas.

Take advantage of discounts available. Many stations have coupons available for discounts on gas purchases. These coupons can be found in various places, like the back side of grocery store receipts, in the mail coupons, internet coupons. Many stations will give you a discount on gas with the purchase of a car wash, or visa versa. A great way to save money on gas is by using a gas rebate credit card. Some of these cards can be used at virtually any gas station, like the Chase Perfect Card (which gives you a 6% rebate on all gas purchases for the first 90 days), and the Discover Gas Card (which gives you a 5% rebate on all gas purchases). Both cards give you a 1% rebate on all other non gas purchases. A number of gas station specific cards are available, but are much more limiting, since you only save money at the same brand station.

Find other ways to get to work. One of the best ways to lower your fuel expenses, is to carpool to work. You can reduce the inconvenience by sharing a ride with someone that works at the same company, and lives near your home. Many companies have a bulletin board, or Intranet web site where you may be able to find someone to carpool with. Another great option is public transporation. Passes are usually available at discounted rates. Although you have to pay to use public transporation, is usually much less expensive than driving to work, and paying for parking (where applicable). Some other options are walking, or riding bike to work. Both of these options have the added benefit of giving you exercise; however, you must live relatively close to work to be able to do this, and you are well advised to ensure that you have access to a shower at work!

Purchase a more fuel efficient vehicle. Many vehicles are getting worse fuel economy than vehicles of the past. Auto manufacturers are putting larger engines in bigger vehicles, which results in unsatisfactory fuel economy. Many SUV's get 15-20 MPG (some even worse). A new wave of hybrid gas/electric vehicles are on the market, and some of them get 45+ MPG. Although their manufacturers say that they get nearly 60MPG, the Honda Insight and the Toyota Prius actually get around 45MPG in real world tests. This is still 3 times the fuel economy on some of the big SUV's and can lead to huge savings. Keep in mind that unless you do a lot of driving, it may be difficult to save enough money to justify paying the premiums that these vehicles command at the dealership. There are a number of other non-hybrid vehicles available that can save you a lot of money at the pump.

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