Finance
Gas prices too high, Americans want to spend 37% less: study
Gas prices have cooled, but Americans still feel they are spending too much on fuel, a recent study said. (iStock)
Americans are spending roughly 3% of their income fueling their cars even as gas price inflation cools, a recent study said.
That expense breaks down to roughly $1,712 annually and is about 37% more than what Americans believe they should be paying for gas, the American Trucks study said. According to the study, gas costs have pushed some Americans to reconsider travel despite the favorable forecast for summer prices.
The national average price for fuel for most of this summer is forecasted to remain in the mid-$3 per gallon range, with potentially tens of thousands of stations falling below $3 per gallon throughout the next several months, according to a GasBuddy forecast. Notwithstanding the break they are getting at the pump, 23% of Americans still plan to hold back on summer travel and road trips due to gas prices, and millennials are the most likely to curtail their travel plans.
If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. You can visit Credible to shop around and find your personalized premium without affecting your credit score.
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Ways to save on fueling your car
If you plan to hit the road this summer, you can lower what you spend on fueling your car by following these tips:
Shop prices before pumping
Forty-six percent of drivers said high gas costs have impacted their itineraries this year. Drivers could save money by planning on where to buy it, according to the GasBuddy survey. Using an app that displays gas prices can help you save 10 to 50 cents per gallon over just a few blocks.
Avoid filling up at state lines
Drivers could be paying as much as an extra $1 a gallon if they are filling up at stations near certain state lines, according to a GasBuddy report. Gas prices between states vary because of state taxes, proximity to oil refineries and resulting transportation costs. The top five most expensive bordering states to fill up are Arizona/California, Idaho/Washington, Idaho/Oregon, Nevada/California, and Oklahoma/Colorado borders.
Consider how you pay
Some gas stations offer discounts when customers pay with cash. Drivers could also save money by joining loyalty programs to receive promotional savings.
If you are shopping around for new auto insurance, you can use the Credible marketplace to compare multiple providers and find your personalized rate in minutes.
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Car insurance rates continue to rise
Drivers paid an average of $1,841 to insure a car in 2023, or 5% more than they did the previous year, according to a recent report from the Zebra. That comes after a 15% jump between 2022 and 2023. Unfortunately, 2024 is likely to bring more of the same.
Where you live can significantly impact how much you pay for insurance. For example, states more affected by climate-related disasters have seen a higher incidence of insurance providers pulling out or writing new policies, leaving buyers with fewer options for insurance shopping.
The make and model of a vehicle have also greatly impacted car insurance costs. Drivers of Kia and Hyundai cars have had difficulty insuring these vehicles because certain models are more prone to theft.
Florida and Louisiana top the list of states with the highest annual premiums. Drivers here pay an average premium of more than $2,700 per year. That’s 47% more than the national average. Drivers in Vermont and Idaho pay the least, with annual premiums registering 35% below the national average. Drivers in 19 states now spend an average of more than $2,000 a year in auto insurance premiums.
Are you shopping around for new auto insurance? The Credible marketplace can help you compare multiple providers and find your personalized rate in minutes without affecting your credit score.
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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
‘The Big Money Show’ co-hosts discuss buy now, pay later spending options and the impact it will now have on your credit score.
Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options — a practice that some experts deem “predatory.”
“You’ve got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult,” career coach Ken Coleman told “The Big Money Show,” Wednesday.
“This is predatory, and it’s going to get a lot of people in deep trouble.”
RISKS OF BUY NOW, PAY LATER: ‘TICKET TO OVERSPENDING,’ EXPERT SAYS
DoorDash and Klarna are now partnering up to extend buy now, pay later options to consumers. (Reuters, Getty / Getty Images)
Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.
Consumers may risk getting hit with late fees and interest rates, similar to credit cards.
“So your sandwich might show up on your FICO score, especially if you pay for it late,” FOX Business’ Jackie DeAngelis explained.
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Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.
Ramsey Solutions personal finance expert and ‘The Ramsey Show’ co-host George Kamel discusses the ‘buy now, pay later’ craze and the trend that celebrates the financial benefits of being childless.
“The Big Money Show” co-host Taylor Riggs offered a different perspective, suggesting that company CEOs have a “duty” to attract as many customers as they want.
“Unfortunately for me, this always comes down to financial literacy — which I know is so much in your heart about training people to save now by later,” she told Coleman, who regularly offers financial advice to callers on “The Ramsey Show.”
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Coleman continued to come to the defense of financially “desperate” consumers, arguing that companies are targeting “immature” customers.
“I’m for American businesses being able to do whatever they want to do under the law. That’s fine. But let’s still call it what it is: it’s predatory, and they know who their customers are,” Coleman concluded, “And I’m telling you, they’re talking about weak-minded, immature, desperate people.”
FOX Business’ Daniella Genovese contributed to this report.
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