Ways to reduce transportation costs are as follows:
Never buy a new car -- The moment you drive a new car off the lot, it depreciates significantly. In fact, a very high percentage of the total depreciation that occurs over a car's life occurs when you drive it off the lot. Buy a car that is just a year old and you will pay close to what the car is actually worth. This way, the person who owned the car before you pays for all that depreciation.
Hide your trade-in from the car salesperson -- In order to maximize the profit he makes when you buy a new car, the sales person will offer you less for your trade-in if you manage to effectively negotiate a lower price for your new car. If you can, hide your trade-in from the salesperson by parking around the block, etc., and refuse to discuss or negotiate the trade-in price until you have negotiated the price of the new car.
Maintain your vehicles -- A little preventative maintenance can save you a fortune in repair costs. Spending $50 to maintain your vehicle can save you $800 or more per year in repairs. Follow your vehicle manual's recommended maintenance schedule religiously. If you learn how to do as much maintenance yourself as you possibly can, such as changing your own oil, filters and antifreeze, you will save even more.
Buy a car with a high residual value -- Most cars depreciate significantly after they are purchased, losing almost half of their value within two years. Buying a car with a high residual value (35% or more) means you might get significantly more when you sell it or trade it in five years from now. Find out your car's residual value at www.edmunds.com. As of early 2005, cars with the highest residual value are the Nissan Altima, Ford F-150, Toyota Camry Solara and Toyota 4Runner.
Check out insurance rates before you buy -- Find out what it's going to cost you to insure a specific vehicle before you buy it, as different models have different rates.
Don't buy a gas guzzler -- If you can't afford to drive a big SUV, then don't. The amount of money the owner of a small economy car has to spend on gasoline each month is significantly less than what the owner of a gas guzzling SUV has to spend.
Wash your own car -- This can save you as little as $10 per month or as much as $30 per month.
Empty your trunk -- If you habitually carry around heavy objects in your trunk or back seat, you're adding about $200 to your annual fuel costs.
