For the last few years, the common financing trend among buyers to avoid PMI (private mortgage insurance) when they didn't have the standard 20% down payment has been to obtain a second mortgage, also known as a “piggyback.” Today, lender paid mortgage insurance (LPMI) offers a great alternative to PMI.
At one point or another, everything seems to go on sale. After being on the market for a year or two, cell phones go on sale as newer versions become available. The same goes for computers, TVs and golf clubs. Even clothes go on sale depending on the season.
In short, sales are great. However, not everything goes on sale. In fact, some things in particular only increase in price over the years. One of those things is gasoline. Aside from incentives like Speedy Reward Cards, you never see commercials for gas going on sale. If there’s one thing that I would pick to go on sale, I think gas would be it. As it approaches $4 a gallon, it’s becoming more and more expensive to travel from point A to point B.
The rising cost of gas got me to thinking about the differing costs to fill up vehicles such as cars, trucks and motorcycles. Have you ever wondered how much you spend filling up your vehicle over the course of a month or year? The amount is staggering. Take a look.
The amount of gas a car holds depends on the size of the car. Smaller cars generally have gas tanks that hold 12 gallons worth of gas, while larger cars can hold 15 or 16 gallons. For the purpose of this story, let’s say gas costs $3.85 a gallon. A car with a 12-gallon tank costs $46.20 to fill up while a larger car with a 15-gallon tank costs $57.75. Depending on your commute to work and how far you drive for other purposes, the amount you spend at the pump can put a significant dent in your wallet. Let’s say you fill up once a week (a low-end estimate for some). Over the course of a year, you’ll spend approximately $2,400 if you fill up once a week with a 12-gallon tank. A 15-gallon tank will run close to $3,000.
Much like cars, the size of the gas tank in a truck depends on the size of the truck. For this story, let’s say the truck holds 25 gallons. To fill it up, you’re looking at just under $100! I used to drive a truck and with figures like that, it’s not hard to understand why I don’t miss it. Over the course of a year, you’ll spend over $5,000. Keep in mind these numbers are based on filling up only once a week. They don’t take into account vacation trips or other long commutes that you’re more than likely to experience throughout the course of a year.
Motorcycle tanks come in all different sizes. Some can be as little as a two-gallon tank while others can be as big as eight gallons. Let’s say your bike holds five gallons. You’ll spend approximately $20 for each fill-up. Over the course of a year, your total comes out to just over $1,000. What have we learned so far? If your main objective is to save money at the pump, a motorcycle is the way to go (weather permitting).
Remember, these numbers could vary widely depending on a number of factors. How much do you drive? How many miles per gallon does your vehicle get? These are just a couple of the variables that will impact the cost.
Before reading, did you have any idea how much money you typically spend on gas? Do these numbers surprise you? Let us know in the comments below!