Fueling Up Without Getting Down
English: First 4 digits of a credit card (Photo credit: Wikipedia)
Like a toothache that starts out small and in a month’s time, becomes a painful, throbbing root canal, the cost of owning and driving a vehicle often sneaks up on us over time, creating a burden on our pocketbooks that can be just as agonizing as any visit to the dentist. There is perhaps no bigger factor in accrued vehicle expense than the cost of gas. While for many, driving is the best, if not only, option for getting around, it can be hard to justify its convenience when its price tag is begins increasing. With a few changes in habit, however, it is possible to get that monthly gas bill down, and feel a bit better about the morning commute.
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Pay with Cash Rather than a Card
One simple change is to start carrying cash for trips to the pump. Though paying with plastic is faster and more convenient than heading inside to pay, many smaller chain stations offer a cheaper rate for cash paying customers. Cash rates can be anywhere from 5 to 15 cents lower per gallon than card prices. For gas stations, the incentive is mutually beneficial: card companies charge stations a fee per swiped card, and that fee then gets passed on to the customer. According to Forbes.com, card fees are “the second highest operating cost for gas retailers,” putting them above even the cost of rents. Stations that charge less for cash payment are simply passing the savings along to the consumer.
As a bonus, by paying with paper you are also lowering your risk of identity theft. Modern card swipe skimmers are making it easier than ever for thieves to access consumers’ card information at the pump.
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Credit Card Rebates and Discounts
For those intent on sticking with plastic, many card companies offer discounts that extend to fueling up. If you are partial to a particular station, you may want to look into a branded gas card. The Chevron Texaco card, for example, offers a 10 cent per gallon fuel credit on gas purchases at their stations, 3% on non-fuel purchases, and 1% fuel credit on purchases outside their stations, with a $300 yearly maximum for fuel credits. Costco offers their own gas card, giving great deals on already discounted gas, but it is only carried by American Express, and, of course, is only helpful if you live close enough to a Costco.
Other rewards cards offer specific gas rewards, though usually not as high as gas-branded cards. The Chase Freedom Visa offers 3% in gas rewards, with the promise of earning new 5% cash back opportunities every three months for various attractions including gas stations and restaurants. The Fifth Third Cash Rewards Mastercard offers 2% cash back for every $1 spent on gas, as well as on groceries, and at discount stores. Check out our list of gas credit cards for more specs on twelve different gas rewards cards.
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Take Care of your Car
It turns out Mom and Dad were right about how important it is to regularly service your car. Studies show that a well maintained car not only reduces driver stress levels, but also leads to better gas mileage. According to FuelEconomy.gov, tuning an out of sorts engine can improve gas mileage by an average of 4%, while more major fixes can sometimes help to up your mileage by as much as a staggering 40%. Other simple fixes, such as using the manufacturer’s recommended motor oil and keeping tires properly inflated, can help save anywhere from three to ten cents per gallon.
The website also recommends driving at a steady pace, rather than sudden acceleration and braking, to increase your miles per gallon. And as tempting as it may be to speed to work when running late, the further you veer upward from 50 miles per hour, the more gas you are wasting. Obeying the speed limit not only puts you at lower risk for an accident or speeding ticket, it also helps save an estimated 24 to 50 cents per gallon.
Although not always possible, avoiding heavy traffic is also a great way to improve mileage. Idling for long periods of time wastes large amounts of gas, not to mention providing an unnecessary tax on the environment. Now, if only there was a way to eradicate rush hour traffic…
Angie Picardo is a staff writer for NerdWallet, a personal finance website dedicated to helping consumers save money by finding the best gas credit cards.
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