Financial Tips

How to Save Money : Transportation

How to get around paying a lot for getting around

Most people agree that a car is a necessary expense. The problem is failure to budget for the "real cost" of automobile ownership. In addition to the monthly payment, there are gas prices, insurance premiums, maintenance expenses and personal property taxes. Anything you can do to lower these costs can lower your monthly cash outlay.

Drive less and save more

Use public transportation whenever if possible and ask about senior citizen discounts, if applicable. Avoid parking costs in business districts by carpooling or use park and ride. If your job requires you to drive, make the most of the mileage deduction on taxes by keeping excellent records and doing errands on the way to and from work.

Shop around for insurance

Know insurance renewal dates, so you can shop for the best rates early. Check out a variety of sources, including the Internet. If you own your own home, ask for discounts for consolidating auto and homeowner insurance with the same company. Those with a less than perfect driving record may consider taking a driver safety course to have points removed from their license-which may result in lower insurance premiums.

Learn the "mechanics" of car maintenance

Check your own power steering, windshield wiper and transmission fluid and most importantly, check your oil. Changing your oil on a regular basis is one of the cheapest, easiest ways to prevent costly repairs. You can learn basic car maintenance skills at a community college or have some one teach you. The cheapest car to maintain is one that is small-which costs less to operate-and domestic-which costs less in parts and service to repair.

Did You Know?

A brand-new car can depreciate thousands of dollars the minute you drive it off the lot. If you've financed a major portion of it, this can leave you "upside-down," which means your owe more on the car than it's worth. Better idea — buy a used, demo or fleet car