One of the most damaging yet silent expenses to your bottom line can be the cost of gasoline for your car. With gas prices at an average of $3.818 per gallon it is becoming clear that if you want to save money, buying a car that has good MPG (Miles Per Gallon) is the way to go.
The 4 Cylinder
We own a 2002 Toyota Echo that gets 32 MPG according to FuelEconomy.gov. If we drive 15,000 miles per year using the current national average of gas, it would cost us roughly $1,790 per year for fuel. That is a little over $149 per month.
To be fair I will use another Toyota in this analysis. According to Fuel Economy.gov a 2002 Toyota Sequoia gets 14 MPG on average. Using the same driving miles, it would cost roughly $4,090 per year. Breaking it down further it would cost slightly over $340 a month.
The Bottom Line
Owning a V-8 could be costing you thousands of dollars more a year then if you bought a 4 cylinder vehicle. According to this particular study, having a V-8 costs $2,300 more per year or $191 per month!
Taking it Further
You might like having the power of a V-8 and think that you are willing to pay the extra couple grand per year to own it. Well, let’s take the $2,300 per year in savings and invest it for the next 30 years. If you were able to get a 7% annual return, how much do you think you would have? $217,259.81!
Is owning a V-8 that important to you?
Save Money Using a Robot
How would you like to save money without having to do much effort? Well, now you can.
There is a free tool called Trim which will cancel your unused subscriptions, find you cash back, and renegotiate your bills for you. All you do is sign up, connect an account and their robotic assistant will email you ways that you can save money.