We have been working on converting a 1976 Porsche 912 to all electric drive. The project began two years ago and was finally completed last week and is on the road in Tallahassee Florida. This Porsche is powered by an 11 inch diameter electric motor and 85 lithium ion batterys. We plan to add more photos and infomation about the car to the www.mymoneypower com website soon.

Note: This photo was take at a Las Vegas car show where we had the car on display.

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As a hybrid owner I have listened to many a person explain to me why buyng a hybrid is a bad deal. They explain that a similar car in the same class would cost less. And that the amount of time and miles I would have to drive the car to recoup the cost difference is too great . Yes, I could have saved $5,000 and bought  a car I did not want. Instead I got what I wanted. It turns out the Prius is the best car I have ever owned. I like the way the engine shuts down when the car is stopped. Suprising the extra torque from the small electric motor and shift free transmition provides a solid feeling of accelleration and driveablity. The car is comfortable, roomy and fun to drive. Hybrid owners don’t have to justify thier choice in car technology anymore than anyone someone choosing four wheel drive, ugpgraded heated seats, super state of the art stereo systems, fuel injected hemi’s or other features that they want. It isn’t about getting the lowest cost car in that class of cars, it’s about getting what you want. In the case of hybrid cars the buyers want to use less fuel per mile driven for reasons that transend the current price per gallon. It’s ok if you don’t get it, but please understand that the ”hybrids don’t make economic sense” argument is flawed.

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You have been driving your gas guzzling vehicle for 5 years or more, and each time you go to the gas pump it is another $65.00 to fill up.  All your friends and neighbors are on the bandwagon of energy efficiency with new hybrids and you are wondering how you can get on the bandwagon too.  Fuel efficiency for personal transportation does not come without a price that can significantly impact your monthly discretionary income.  If you have a cash surplus to purchase a hybrid vehicle then by all means go for it.  But here are a few thoughts about how to have a new perspective  and fall in love with your gas guzzler again from a personal economic viewpoint.  Is your car paid for or close to being paid off?   If yes then read further.

Let say you your gas loving vehicle gets 15 miles per gallon of gas, with the national average gas price at around $2.75 per gallon, it costs around 18.33 cents to drive one mile.  Let’s futher assume you drive 1,000 a month, so the cost in gas alone for you monthly is $183.30.

Now let’s figure out that new car you have been eyeballing the past several months.   To drive it off the lot with tax is $20,000.  (Can you really buy a new car for $20,000 these days?) Oh well let’s assume you can to continue this exercise.  A 5 year car loan for $20,000 at the national car loan interest rate of about 6.5% will generate a $392.26 monthly payment and you will still need to purchase the gas.  Using the same methodology as above, we will assume your new car get 35 miles to the gallon.  Now it will cost you 7.85 cents to drive that mile or $78.50 per month for 1,000 miles.  Petty cool huh….. you have now reduced the cost to drive a mile by more than half than the cost of your dear gas loving car.  You are going to save $107.50 in gas alone each month.

This is where one can get in trouble if you really are not in a financial position to get a new fuel efficient car.  A 5 year term car loan is a long term committment.  So you better love the vehicle.  The next closest thing to purchasing a vehicle is purchasing a home or getting married which neither should be done without thoughtful consideration and soul searching.   The new vehicle loan terms are 5 years at 6.5%, which equates to a $392.26 monthly payment. (Don’t forget 5 years/60 months)  There is now a close to $400.00 monthly car payment but you have the gas savings $107.50.  The math is easy.  You are going to have a $284.76 out of pocket expense to drive in style.  If cash flow is not a problem then your ready to move on to a new fuel efficient ride.  But if you don’t have this monthly cash discretion the next time you crank up your car remind yourself I have no payments.

Photo Credit: Jason McHuff

What are your thoughts?

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Gas prices are always jumping higher and higher! This isn’t helping anyone’s wallets, especially with current state of the economy. Here are five simple tips to help you save money on gas!

1. Keep your tires inflated! Under-inflated tires negatively impact your gas consumption efficiency. Inflated tires can improve your gas mileage at an estimated 3.3 percent. Plus, properly inflated tires make driving safer!

2. Get rid of your “Junk in the Trunk”! The more things you have in you car the harder your vehicle has to work to get you places. This equates to more gas consumed than needed. Removing an extra 100 lbs can increase your MPG by 2 percent!

3. Plan your trips! Instead of going straight home after work, forgetting to pick-up the dog food and then having to make that late night run, why don’t you make a conscientious effort to plan your trips? Obviously, if you are driving more your burning-up more gas! So make your rounds all at once and while you’re at it don’t forget to get your dog food!

4. Roll your windows up! The outside air is always refreshing but this causes resistance against your vehicle. You might as well put a parachute on the back of your car! When you’re in town (driving at a slow pace) rolling down you windows is a good idea as a substitute for air conditioning; considering that uses up gas as well.

5. Always maintain your vehicle! Using the recommended grade of motor oil can improve your gas mileage by up to 2 percent. Get your car a tune-up; this can improve your MPG up to 4 percent. Not only will maintaining your car be beneficial to you gas mileage, but it will help keep it running longer.

Bonus

MPG Optimizer

One cool gadget I ran across is a “MPG Optimizer” at Chevrons’ willyoujoinus.com. It shows you how your driving habits truly affect the amount of gas you use and how you can change them. This is a great website that puts it into perspective on how the small stuff you do really does make a difference.

http://www.willyoujoinus.com/usingenergywisely/mpgoptimizer/

Mythbusters

The Mythbuster’s did a segment concerning gas mileage and truck tailgates. Check out the video below, the results may surprise you.

Saving money on gas is easy. It’s all about implementation and keeping-up with your cars’ needs. Drive safe & smart!

Share your gas saving tips below!

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I have chosen a gas card as the first step on My Credit Journey. If you missed that post, it is my 6 month journey to build up credit and get accepted for a decent rewards credit card; after being rejected twice. As a recent college graduate with no credit history, I am looking to build up my credit to help get lower interest rates for big purchases that might be around the corner for me (car, house, etc.). I have identified a gas card as a good opportunity to start building credit.

I drive a gas guzzling SUV and spend anywhere between $100-200 a month on gas. My tank is 18 gallons, and I fill it up at least 3 times a month, sometimes 5 times. I’ve been driving this car for 7 years so I have a pretty good feel for its gas consumption. If you need help gauging this, sit down and do the math. Calculate how many miles you drive each day compared to your MPG to figure out your consumption. I get about 225-250 miles to my 18 gallon tank, which is about 12-14 MPG. I drive about 28 miles a day, which equates to 840 miles or 3-4 fill-ups a month. This figure excludes road trips, which are an outlying factor for me. I usually take my girlfriend’s much more gas efficient Corolla for trips. But if long trips are a regular occurrence for you, include them in your calculations. I will be selecting my new gas card based on 2 factors: Price and Rewards.

Price

The most important factor in deciding on a new gas card should be price. You will want to pick a card from a gas station that consistently has low prices. I’ve been planning this for a while and have been auditing the gas prices in my area. When I see a sign I make a mental note of the cheapest price I see when I’m out driving. I’ve been also using a very useful website to do this: Gas Buddy.

Gas Buddy is the best website I’ve discovered that covers gas prices by location. They also have some very interesting maps and a trip calculator. I’ve been looking up gas prices in my area for a couple of weeks and found a gas station that was almost always the lowest. The Chevron, which is coincidentally located a block away from my residence, is always among the lowest. I will also include 2 other competitors that are relatively low as well, BP and Shell. I’ve excluded any gas stations that weren’t relatively close to my daily driving patterns. There is no point to driving to a gas station that is cheaper by a cent or two, if that gas station is 20 miles out of the way. Unfortunately, Costco is the second cheapest but it falls under this category being 23 minutes out of the way.

I’ve taken an average of 5 random days through out the month to calculate each stations price per gallon. The monthly price is based on 3 fill-ups.

The Chevron is a clear winner in this category by having the lowest price and closest location.

Rewards

About every gas card advertises rewards for using their card. I will compare the rewards of my price finalists to come up with a true cost figure that includes the value of the rewards. Careful consideration will need to be applied. There will be hidden ceilings, fees, and conditions hidden in the fine print. Don’t let their advertisements fool you, that 10cents a gallon may only be for a limited time. I am excluding any other factor not related to fuel purchases. Some of the cards offer cash back rewards on non-fuel purchases, but I plan on using this card for fuel only. I also plan on paying it off each month, so I am not factoring in APRs, balance transfers, or any of that good stuff.

Chevron offers $.10 per gallon. BP offers 10% back for the first 60 days and 5% after, but it has a cap of $25 per billing cycle which shouldn’t be an issue for ordinary consumers. Shell offers 5% back but a $20 annual fee if you use the card less than 9 times in the calendar year.

BP is the clear winner for the first year because of the introductory offer. The chevron edges out by $19.78 on every year thereon after. The Chevron card will be better at lower gas prices, but worse at higher prices because of its flat 10 cents per gallon rate.

The Verdict

The BP card may attract a lot of people for its introductory offer, but its gone after 60 days. Some people may want to go for the BP for the first year and use up its introductory offer and for the fact that it performs better at higher gas prices.

Personally, I am going for the Chevron card. It is more conveniently located and has better long-term return. Of course this is assuming that gas prices remain constant, which we all know do not.  An interesting note, that according to GasBuddy the same Chevron had a price of $1.60 per gallon the year before. Excluding the introductory offer, the BP card will perform better if the price per gallon is above $2 while Chevron will perform better when it is below $2 per gallon; assuming equal gas price between the two stations. One thing to keep in mind is that the BP card is provided by Chase which has been really been clamping down on application requirements. I have to choose my applications carefully, as too many credit checks in a short period of time will negatively impact your credit score.

One thing to keep in mind, these figures are completely dependent on my situation. It is dependent on my gas consumption and local prices. In order to make the best decision for your scenario you will need to go through this process with yourself!

Photo Credit: Napalm filled tires, AgentAKit, bloomsberries

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