Cost of Getting Around

Americans are becoming more resourceful in their travel habits these days. Something changed in the middle of 2008. Perhaps it was the shock of paying over $4 per gallon at the pump.

I know my driving habits have changed. Now I drive down our area 6-lane highway at 60 mph instead of 70. I checked the savings out with my Corvette. At 70 mph I average 32 mpg--and at 60 mph that increases to 38 mpg, a full six miles per gallon savings!

That hooked me--plus I find life is more relaxing in the slow lane.


Motorists across the nation are driving less these days. Couple that with the major decline in a barrel of oil and it's quite a savings.


Just consider:

• The typical car is driven 10,000 annually.
• Say it gets 20 mpg on average.
• Once gas was $4 per gallon--now let's say it's $2 per gallon, or a $2 savings over last summer.
• That's a $1,000 annual savings. Ie, 10,000/20 times $2.

A typical American owns 2 cars--for a total annual savings then of $2,000.

If that household makes $50,000 per year, it's the equivalent of a 4% boost in spendable household income.

It's one of the reasons why we are starting to see some recovery in the US economy--people have a bit of disposable income, and they are starting to spend it again.