Opportunities for Cost Savings

Opportunities for Cost Savings


Vehicle costs can be minimized by selecting the smallest,
most economical and fuel-efficient vehicle consistent with a
family's needs and by avoiding unnecessary use.

During the first year of operation, intermediate-sized cars
have daily owning and operating costs of $21.35. The portion
attributable gasoline costs, including taxes, amounts to $2.14.

Throughout the 12-year life of these vehicles, fuel and
oil costs, including taxes, would account for about 16 percent
of the total cost for subcompact cars, about 18 to 20 percent
of total costs for other cars, compact pickups, and minivans,
and 24 or 25 percent for full-sized pickups and full-sized
vans. These figures indicate that substantial savings can be
achieved by conserving fuel. This can be accomplished through
more efficient driving habits, careful planning to eliminate or
combine trips, proper vehicle maintenance, and ridesharing.
Fuel efficiency should also be considered when selecting a new
vehicle both in determining the size of vehicle and the
particular model within a size class.

The U.S. Department of Energy has published the "1992
Gasoline Mileage Guide" containing the Environmental Protection
Agency's fuel economy estimates. Consumer Reports also
publishes fuel-efficiency estimates for individual vehicles as
well as a qualitative information on relative costs for
depreciation and for repair and maintenance.

Ridesharing is another effective way to reduce automobile
expenses. Most people find that work trips are the most
convenient for ridesharing. For example, if an auto is
principally used for the work trip, and the individual
rideshares with another and uses that auto 50 percent of the
time, mileage and depreciation will likewise be reduced.
According to the data generated for this study, the cost for an
intermediate car operated by a single driver is 33.25 cents per
passenger mile compared to a cost of 8.31 cents per passenger
mile for the same car with 4 occupants. For a 9 person van-pool
the cost drops even further to 4.95 cents per passenger mile.
In addition, use of "High Occupancy Vehicle" lanes not only
speed the work trip but reduce depreciation on an automobile,
by avoiding daily "stop and go" travel on congested highways.
Data from the Federal Highway Administration's 1990 Nationwide
Personal Transportation Survey show that travel to work and
back comprises 32.8 percent of all personal driving, providing
the opportunity for substantial cost savings by ridesharing.