Car Finance / Gas-Buying Strategies

Gas-Buying Strategies
How To Ease Pain at the PumpTips for saving money on gas usually involve changing your driving habits or buying a more fuel-efficient car. But not everyone is prepared to take that advice. If those aren't in the offing for you, we have some easy fuel-saving tips that can take the sting out of today's gas prices.

The lowest gas prices Does this sound familiar? You notice your fuel tank is approaching empty, so you drive by several gas stations looking for the lowest price. Unsure of where the cheapest gas is, you finally pull over and fill up your car, dismayed by the total cost. You pull away, only to discover another gas station that's charging substantially less not far away.

If you think the cost disparity only amounts to a few dollars per year, here's news: The difference between the highest and lowest gas prices in Los Angeles on a recent day was $1.22 per gallon. For a 20-gallon tank, that's a $24.40 difference for just one fill-up. But price gouging isn't limited to the big city. In the smaller city of Beverly Hills, the difference between top and bottom prices was 40 cents per gallon, and those two stations were mere blocks from each other.

How do we know the local prices? We checked GasBuddy.com. Gasbuddy.com volunteers scout out gas prices in stations throughout the country and post their findings online. Entering your ZIP code will reveal the name, address and gas prices in your area. You can look at the lowest (and highest) prices, set a time frame (past four hours, for example), and even get a map to the station.

Fill up at wholesale stores Members-only clubs and wholesale stores such as Costco, Sam's Club and BJ's Wholesale Club offer gasoline at very reduced prices. According to Richard Galanti, Costco's chief financial officer, "We have 260 gas stations in the U.S., and on average, members can expect to save anywhere from a few cents to sometimes as much as 20 or 30 cents per gallon." Costco employees survey the local competition to ensure that they have the lowest prices. The downsides: Wholesale stores charge a membership fee. And at Costco, fuel can only be purchased with a debit card, Costco cash card or American Express credit card.

Cash back for gas purchases Consider getting a credit card that rewards you for your gas purchases with cash back. A new BP Visa Rewards card gives cardholders 5 percent gas rebates for fuel purchased at BP gas stations. Other credit cards, such as the Discover Card or the Citibank Driver's Edge MasterCard, give cardholders rebates on gasoline purchased at any gas station (5 percent and 6 percent, respectively). Remember, though that these substantial savings can be negated if you don't pay your entire balance each month.

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