Having a fuel-efficient car is great for the environment, but it is also great for your pocket book. The best low emission cars out there can save you tons of money through a variety of means, including gas savings, but also through lower taxes and cheaper maintenance. Here are some of the biggest financial benefits of having a fuel efficient car, beyond the “it’s good for the environment” argument.
Lower Fuel Costs
The biggest cost savings will be the lower fuel costs from not having to fill up your gas tank as much. And this is a savings that can really add up! For example, with gas right now averaging $3.50 per gallon (and continually rising), here is how much you’ll save with a fuel-efficient car:
Normal Vehicle: 25 MPG
Honda Civic EX GT: 46 MPG
For comparison’s sake, let’s say that they each have a 10-gallon tank. That means it will cost you $35 to fill up each time. But for that $35, you get the following:
Normal Vehicle: 250 Miles
Honda Civic EX GT: 460 Miles
The is almost double the mileage of the normal car, which means that you will save about 50% of gas switching to the fuel efficient model.
Cheaper Maintenance
Many of the best fuel-efficient cars also have cheaper maintenance required than a normal car. I’m not talking about fuel efficient cars that are hybrids or battery-powered, but just regular cars like the Honda Civic that get great gas mileage. These cars tend to be cheaper to maintain because they are less complicated, and have pretty standardized parts. As such, any maintenance needed is cheap and easy.
Lower Taxes and Fees
In most places, fuel-efficient cars qualify for lower taxes and fees compared to other vehicles. This includes taxes when you’re purchasing the car (in fact, many states offer tax breaks or other incentives to purchase fuel efficient vehicles), and also registration fees due later on the vehicle. If you’re looking for a way to save when it comes to ongoing fees on your car, a fuel efficient vehicle is a great way to save.
Cheaper Insurance
Finally, many fuel-efficient cars qualify for lower insurance premiums compared to regular vehicles. Once again, this isn’t directly related to being fuel efficient (although some insurance companies do give incentives for going “green”), it is related to the same reason that maintenance tends to be cheaper. Fuel-efficient cars tend to get better mileage because they are not high-powered vehicles, and so you, as the driver, can’t easily speed or accelerate. Insurance companies like this because it lowers their potential risk. Also, these types of vehicles tend to be stolen less than other cars, and so the premiums for comprehensive insurance are also lower.
Having a lower insurance premium can really help you save money on your vehicle, because insurance is usually one of the biggest expenses in owning a vehicle. The lower your insurance premiums, the better off financially you will be.
I like the straight to the chase method you put out. It breaks it down really simple for most people… a common argument I get is that hybrids and more fuel efficient vehicles are more expensive but with saving 50% on your gas, it makes it a better buy to pay $3k – $5k more for a car when it pays for that in a year or two. Thanks for the good common sense!
This is true. You can save hundreds of dollars just from getting a more fuel efficient car. But it may not be worth the price to get a hybrid because the cost difference could take years to make up. If you do have a hybrid, then finding a good after market place to work on the car will cut the maintenance cost, which is a big factor and of course buying used.