Categorized | Auto, Saving Money

Combating Rising Fuel Costs

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Some of the highest gas prices since 2008 will be felt over the holiday weekend in part to the uncertainty and violence currently plaguing Iraq. As ISIS rages its campaign between Iraq and Syria, the price per barrel of oil has risen sharply due to the conflict. While gas prices have begun to rise, car owners have also been victimized by longer ownership on certain car models due to achieved gas mileage on older cars versus their newer counterparts. Depending on the amount of miles driven yearly, it might be time for some people to upgrade and sell their older car for a newer one which might help decrease extra spending on fuel.

Fuel efficiencyfuel 1

The old adage of you have to spend money to make money was always bothersome to me when I was growing up. I could never understand how to make money if you had nothing in the first place, but the underlying message was more geared towards not being afraid to invest money and time into a means towards an end. As newer fuel sipping technology emerges, newer models of cars are performing more efficiently and at a lower cost than most of their older counterparts. In a little less than a decade the fuel consumption of has lowered overall across the passenger vehicles currently being offered on the roadways. Some of the more recent achievements in fuel sipping technology are offering more substantial increases in fuel economy. More and more brands are offering full and midsize sedans, popular buys among the U.S. consumer market that are mirroring the same fuel economy that compacts and sub-compacts have had for years.

Experts at the University of Michigan have researched and come to the conclusion that the average new car owner is saving at the very least 28 dollars per month. That number is based on national the current national average of price per gallon at $3.66 per gallon, miles driven per year and average fuel economy. The research has concluded that Americans that buy either newer cars or newer versions of their current cars are more likely to see savings within a few weeks of purchasing.

fuel 2Is a new car worth the cost versus savings?

I know what you are thinking, if I drop tens of thousands of dollars on a brand new car – how is that worth saving 28 dollars a month? That’s only 336 dollars per year! Those who conducted the study at the University of Michigan had also taken into account the average age of older cars being driven on the road as well as the average cost of upkeep and maintenance. The group’s study found that key consumer patterns were also changing. Ten years ago more households were buying SUV’s to accommodate for bigger families and more monetary embellished needs. With the state of the economy over the last ten years and the scarcity in the job market, many people have maintained the trend of downsizing their vehicles as well as their spending habits. In an effort to cut car and insurance payments, gas consumption, and wasteful spending – people have been trading in their SUVs and going for smaller vehicles in the full and midsize sedan range. This pattern has been easily supported by the auto industry’s best selling vehicles such as the Nissan Altima, Honda Accord, and Toyota Camry models. In the past two to three years the market has also seen the decline of the SUV and the birth of more crossover vehicles, which are essentially smaller SUVs sitting on car frames with smaller more fuel efficient engines.

For example, Nissan’s #1 selling vehicle is the Altima, their #2 is the Rogue, which is a small crossover that sits on the Altima’s frame and is powered by the same engine. The Rogue averages about 28 miles per gallon where as ten years ago its counterpart the old Pathfinder averaged about half of that.

The cost of a new car may be worth the savings pending you do a lot of driving per year and what type of driving you do. If you do more highway driving than city, your current car should be doing just fine. If you are more prone to be doing stop and go city driving, chances are you are burning more fuel than a newer car would be doing in the same situation. As always the best option for you to do is see what you are spending and what you can afford and make your decision on the best knowledge at your disposal.

Combating rising fuel prices may be easier than you think, as long as you remain committed to educating yourself on the available technology and sales options that best suit your needs. If you do that then you will be saving more money on a daily basis which will then translate into your monthly and yearly budgets.



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