TheKarenD / Flickr

I share five must read blog posts about saving money every Friday.

Gas hike – $5 per gallon gas coming soon? Prepare for rising gas prices with these six tips. (MoneyCrashers)

Kids and money – Find out how to teach kids to manage money before they move out. (The Centisible Life)

Identity theft – Do you know your rights if your identity is stolen? Here’s what to do to get your credit back on track. (Time Moneyland)

Would you let a stranger drive your car to make some extra cash? Rudolf Gumba / Flickr

This post is brought to you by hearing aids.

This is a post by BargainBabe.com writer Yazmin Cruz.

While listening to NPR yesterday, I learned more and more people are making extra money by letting complete strangers (Yikes!) drive their cars for a fee. The people who are renting out their cars are doing so through car-sharing start-ups.

A college age woman told NPR she makes an extra $150 a month. That’s $1,800 a year. Nice! Before you start making money off your ride, here are some things you need to know to protect yourself and your wheels.

• Before handing over your keys, check with the company to see if it provides commercial auto coverage. This type of policy provides coverage to repair or replace a vehicle damaged in an accident and it will pay the claims of any third-party injured in the accident.
• Ask the company how they evaluate who can rent your car. Do they make sure drivers have a valid license? Do they check their driving record?
• Make note of all dents before and after the car is rented out and bring them to the attention of the start-up company.
• If the company doesn’t offer insurance, make sure you know what your insurance policy covers. Many drivers just have liability insurance and it will only cover the damages made to the other car.
• Check that your policy is valid when someone else drives your car. Note, that many personal policies will not cover your car if you’re not the driver.

I don’t have a car. If I did and it was just parked, I’d sell it. By renting out your car, you end up taking on too many risks. I mean, what if you end up losing money instead of making extra cash? I’d be too paranoid. Would you let strangers drive your car so you could make extra cash? If renting your ride for cash is not for you, then check out my post about other ways to make more money.

KB35/Flickr

This post is brought to you by AmeriLoanSearch offering no credit check loans with instant approval.

There are 11 common mistakes people make when buying or selling a used car, according to the October 2011 issue of ShopSmart, published by Consumer Reports. All of them add up to lost money. Summarized below. About to buy a new car? Here’s how to negotiate a good price and the three steps of haggling. Did you know you can save a lot of money buying car parts from a junk yard? Make sure to check this car recall site before you pay for any repairs.

Seller mistakes

1. Settling on price. Trading in your car is quicker and easier than selling it yourself, but the dealer price will be lower than if you sell it on AutoTrader.com, Cars.com, or Ebay.

2. Risking your privacy. Don’t list your address or full name or you may attract unwanted visitors. It’s a good idea to meet potential buyers in a public place, instead of your driveway.

3. Combining buying and selling. Trading in your car and buying one at the dealer is a super

complicated process. Negotiate the price of your new car first, and if the dealer won’t meet your selling price, either walk away or sell your used car privately.

4. Selling dirty. Cleaning up your car’s body and interior can raise the price of your vehicle and perhaps lead to a quicker sale. Some people even buy “new car smell” air freshener.

5. Getting ripped off. Do not accept a personal check or installment payments from a buyer, even if the buyer is a friend or family member. A car deal gone bad will effect the relationship. Cashier’s and certified checks can be counterfeited, so verify the check is good with the bank before you sign away the title. Offer a discount for buyers who pay in cash.

Buyer mistakes

1. Owning up. Never let the seller know what you can afford. Unless you are happy to pay that amount.

2. Going in blind. If you don’t know the value of the car you are trying to buy, how will you negotiate a fair price? Best to check multiple sources, like Kelly Blue Book, Edmunds, Cars.com, Ebay, and AutoTrader. The mileage, condition, and maintenance history will effect the value.

3. Rushing. Dealers like folks in a rush because they often forget to inspect the car and ask important questions. Slow down or come back another time.

4. Staying put. Being able to walk away is a crucial – and detectable – bargaining tactic that will influence how you and the seller discuss the car and come to an agreement on price, or not. If the seller won’t accept your top price (assuming you’ve started with a lower price and slowly worked your way up), walk away.

5. Nixing your mechanic. Have your own mechanic inspect the car, even if the seller says they had it inspected for you. Tell the seller ahead of time that you want to deduct the cost of repairs from the selling price.

6. Blowing off VIN. Do a background check on your car by getting a VIN (vehicle identification number) history report. The report costs a few bucks, but will reveal any accidents and how many past owners the car has had. A car that has been in an accident is often less worth, and a car that has had many owners may have more problems.

Snazzo / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

With gas prices on the rise, finding ways to save money on transportation expenses is a must. Last year, my dad came home and announced he was going to start biking to work. He was tired of paying $160 a month to fill up his car.

“Part of your route to work is uphill. How are you going to do that?”

My skepticism didn’t discourage him. He shopped around and found an electrical bicycle for

$1,700.

Ever since then, he has been riding to and from work only turning the bicycle on when he needs to go up a hill.

“It’s such a stress reliever,” he once said while walking through the door. “I like passing all the cars that are stuck in traffic.”

Believe it or not, he hasn’t seen an increase in the electricity bill. That’s because his boss gave him permission to charge his bicycle at work.

Gas prices are $3.94 on average nationally and significantly higher in Los Angeles at about $4.38 per gallon. He uses his car less often now and only pays $65.70 a month. He is saving $94.30 a month. At this rate, his savings in a year will be $1,131.60. In about a year and a half, he will make back in savings the money he spent on the bicycle.

But that’s not the only benefit. My dad lost weight, decreased his sugar and cholesterol levels, all without a gym membership.

His plan is to go car-less to maximize his savings. Can’t give up your car? You can still save money on gas by avoiding pitfalls that waste gas. To save money on gas I take the bus and subway instead of driving. What are you doing to save money at the pump?

jwalsh/Flickr

I’m having second thoughts about giving up my car for Lent. Not because of my business trip to Los Angeles that will pose a particular public transportation challenge, but because a video shoot I’m doing that was moved from today to next week and the location is three hours away!

Three hours by car, that is. By bus, train, and foot I’m guessing it will take me five hours to get there. I need to be on location by 10 a.m. Yikes! It’s an all day shoot so I won’t start my trek home 5 p.m. Double yikes!

Also, it’s supposed to snow Thursday. Yikes, yikes, yikes.

I can throw in the towel, brace myself for a long commute and stick to my pledge, or exempt myself from autolessness for work. Thoughts?

AAA calculates the national average price for a gallon of regular gas is already at $3.47. Last year the average was just $2.70. In my neighborhood, I’m already seeing $3.59 a gallon.

At what gas price do you start changing habits?

When filling my 12.5 gallon tank hit $50 two years ago, I freaked out. I began riding my bike to do errands around town and carpooling whenever possible. Incremental increases don’t seem so big until you realize how much it adds up to. I’m not the only one who took note back then. When gas prices spiked in the summer of 2008, 78% of all SUV/truck transfers were due to high gas prices, according to LeaseTrader. Now, gas prices are the reason behind just 16% of SUV/truck transfers.

I’m giving up my car for 40 days (for Lent) starting Mar. 9, so I won’t have to worry about gas prices in the short term. Scary thing is that I doubt gas prices will come back down before I start driving again on Easter Sunday, Apr. 24, 2011. The combination of rising gas prices and my temporary auto sacrifice may convince me to give up my car for good.

Are you content to pay $4 per gallon?

DaLee_pl/Flickr

A provocative ad in my Feb. 14, 2011 issue of Time magazine charges that every car you own extracts $7,095 per year from your local economy. The total includes gas, insurance, the purchase price, and finance charges. A measly $1,390 per year stays in your community, including the cost of your license, taxes, repair, tires, registration, and maintenance. The total yearly car spending – $8,485 – is based on a AAA stat. The ad is paid for by Intelligent Cities, a project from National Building Museum, was created by an act of Congress in 1980 and is devoted to studying the built environment and its impact on people’s lives.

Give up your wheels, start walking, and spend more money in your hometown, is the message. If 15,000 people in one community gave up their cars, that would be an extra 127 million dollars to spend. How many jobs would that create? How much stability, through investments and savings, would that foster? A lot more than there is now!

Would you consider giving up your car? Why or why not?

I have often thought about it but here is what’s holding me back:

• Riding my bike or walking in the cold of winter to get groceries – at best not fun, at worst dangerous
• Over relying on friends to hitch rides or carpool
• Getting stuck with taxi/ride share fees when I go to the airport

I paid outright for my used car, so my yearly expenses are much lower than the $7,095 average. Although you’d be surprised how costly is it to drive fast. My car is now 8 years old and has almost 94,000. I’m confident it will last at least another two years, if not longer. So for me and any one else with a paid off car, perhaps the question is really will you consider not buying another car when your current one dies?

You can get gas for sooo much cheaper with grocery discounts.

So many readers chimed in to share stores that offer a gasoline discount, which is how I saved $.80 off per gallon, that I wanted to re-post the information for everyone.

The gas programs vary, but basically the more you shop at a store, the bigger the gas discount. At my local Stop & Shop, I earn 1 point for every dollar I spend, with weekly bonuses that range from 200-400 points. For every 100 points I accumulate, I get $.10 off per gallon. The points last 30 days so my balance is constantly revolving.

Thanks to Camille, Christine, Barbara Sagat, Celia, Shannon, Iggy, Diane, Jennifer, JT Ward, Cathy, Aneta, Talliana, Linda, Dan, Florence, and Karyn for compiling this list!

Albertsons (SoCal, NV, the Northwest)

Bi-Lo (SC, NC, GA, and TN – details on their gas discount program)

City Market

Costco (nationwide, gas discounts included in $50 annual membership fee)

Fred Meyer (OR, WA, ID, and AK – info about gas discounts)

Giant (Washington D.C. area, DE, MD, VA – info on gas discounts with video on audioplay)

Giant Eagle (OH, PA, MD, WVA – info on gas discounts program)

King Soopers (info on gas discounts program)

Kroger (info on gas discounts program)

Price Chopper (CT, MA, NY, PA, NH, VT – info on gas discounts program)

Ralphs (California)

Safeway (CA, NV – info on gas discounts program)

Sam’s Club (nationwide)

Shaw’s (New England, learn about their grocery gas discount)

Stop & Shop (NY, MA, CT, RI, NH – info on gas discounts program)

Tops (NY, PA – info about gas discounts program)

Winn Dixie (FL, LA, MS – info about gas discounts program )

Have you ever heard of grocery stores that offer discounts on gasoline? The more food you buy, the cheaper the gas is. Yeah, right.

A reader left a comment months and months ago about how her Mom bought so many groceries she saved almost a dollar per gallon at the gas pump. I was highly skeptical, until I overheard a cashier tell a customer checking out in front of me that she had 325 gas points.

“That’s good for 30-cents off per gallon,” the cashier chirped. Huh? That was just, well, it was preposterous. As she rang me up, the words bumbled around in my head. Thirty cents off per gallon? PER gallon?

I stole a glance at my receipt. There at the bottom, in clear black type, it said I had 856 gas points. 856!?!

If I filled up at the grocery store’s gas station I would pay $.80 per gallon less. About two weeks later my gas needle gauge hovered at about one-quarter of a tank. I combined errands to swing by the grocer’s gas station, still skeptical the deal was real. What if they only had one grade of gas? (My car requires premium.) What if the savings came in the form of a voucher valid only at the grocer?

I pulled up, swiped my grocery loyalty card, swiped my credit card, and chose premium grade. The light switched from $3.09 per gallon (which is already $.16 lower than the average premium gas price for Rhode Island) to $2.29 per gallon.

My tank swallowed 10.4 gallons, which cost me $23.91. I saved $8.23. Filling up for less than $25 felt great, even if the overall discount was a piddling 1% (with bonus points I spent closer to $500 to save $8.23 – 1.5%).

When’s the last time your gas was that cheap?

Readers chimed in with this list of stores that have a gas discount program.

Albertsons

Bi-Lo

City Market

Costco

Fred Meyer

Giant

Giant Eagle

King Soopers

Kroger

Price Chopper

Ralphs

Safeway

Shaw’s

Stop & Shop

Tops

Winn Dixie

ReneS/Flickr

This is a guest post from Bobbi of Bobbis Bargains.

Unless you live in New York City and use only mass transit, the fastest growing expense you may have is your weekly gasoline bill.  I used to pay for my gas out of my pocket money.  Now, I couldn’t possibly pay for a tank of gas with all the cash in my wallet.  Fuel is a major expense that must be a part of any successful budget.

Knowing this, how can you best stretch your gasoline dollars?

There are lots of articles, videos, and websites that are geared to tell you how to get the most of every ounce of gasoline you put in the tank.  These experts tell you to:

• remove extra weight from your car
• avoid unnecessary idling
• eliminate roof racks
• properly inflate your tires 

If you like to live a very dangerous lifestyle, you can learn the fine art of hypermiling. Hypermiling is defined as the act of driving using techniques that maximize fuel economy. Extreme hypermiling enthusiasts say they can get very high MPG by employing techniques such as turning off the engine while coasting down slopes, taking routes that avoid stop lights and drafting close behind a big rig to remove wind resistance.

It is possible that all of the above will work.  You’d have to check them out for yourself.  Some of them are too scary for me to even contemplate.

I don’t know enough about the mechanics of how a car works to say what will help your gas mileage.  However, what I DO know is that you WILL definitely drive less miles and therefore USE less gas if you do the following simple steps.

1.    Always plan your next day before you go to sleep.  Take a few minutes of quiet time before you turn in for the night to go over what needs to be done tomorrow.  Map out your stops so that you have to travel the least amount of miles.  Decide if an errand can wait until you have another errand in the same vicinity.

2.    Make sure you keep a constant shopping list in your purse, pocket or cell phone.  This way, if you find yourself in a store, you can pick up everything you need at one time.  This will also help avoid impulse buying of items that are NOT on your list.

With just a bit of self-discipline you can spend less time in your car and more time doing the activities you really love.

I reached my nearest gas station this morning and found $2.63 per gallon, not the cheapest price but it was the closest station. Because I had to get to work on time, I bought that costly gas. Since then I’ve been thinking:

• If the cheapest gas is not available at my nearest gas station, how far should I drive for a better price?
• Is a difference in 5 cents per gallon worth burning the fuel and time?

I created a formula to decide whether you should drive to a far away station to fill-up OR whether it makes sense to buy expensive gas at a nearby station.

When To Drive That “Extra Mile”?

There are two elements behind my motivation to drive to buy cheaper gas:

• Save money on gas
• I can buy more gas at a cheaper price, which means I will get more miles from that tank

Let’s calculate how much more “extra” distance you will travel if you buy cheap gas:

Your monthly/weekly fuel expenses = FE (constant)
Gas Price at the cheaper but far-away station = P_c
Gas Price at the expensive but nearby station = P_E
Distance between the two stations = DIST
Your car’s average Miles Per Gallon = MPG
_c = cheaper, _E = expensive, v = volume

Volume of gas bought in gallons = Total money spent/Price of gas per gallon

Thus, the volume of gas bought at cheaper far-away station, V_C = FE/P_c

Volume of gas bought at expensive nearby station: V_E = FE/P_E
Extra gas you would buy at cheaper gas station: V_C - V_E = FE/P_c- FE/P_E = FE (1/P_c – 1/P_E)

Extra miles you can drive if you buy at cheaper gas station:

ExtraMiles = Extra Gas * MPG

ExtraMiles = FE * Difference in Gas Prices at two stations * MPG / P_c*P_E

Here’s How To Decide

Plug-in your values in formula above and calculate ExtraMiles.

• if ExtraMiles > DIST: you drive more miles while spending the same amount so consider driving to a cheaper station

• if ExtraMiles < or = DIST: it makes more sense to buy gas at the nearest station, even if more expensive

Application of formula: Case #1

FE = $30

ExtraMiles = FE * Difference in Gas Prices at two stations * MPG / Pc*PE

I get to drive (5.46368 – 2 =) 3.46368 miles extra (one way to my work), thus I will certainly drive away to get that cheaper fuel.

Application of formula: Case #2

Pc = $2.55 per gallon (12 miles from my apartment)

DIST = 11 miles

ExtraMiles = FE * Difference in Gas Prices at two stations * MPG / Pc*PE

= 30*0.10*25/(2.55*2.65) miles

= 11.09878 miles

I only get to drive (11.09878 – 11 =) 0.09878 miles extra; definitely not a go-for option.

Conclusion

“The cheaper, the better” should not be the rule here. Cheaper gas costs $2.59 in Case #1 which is available 2 miles from my home while cheaper gas costs $2.55 but I need to (burn more fuel and) drive 12 miles from my home. Total money spent is $30 in both cases but gas purchased in Case #1 lets you drive (3.46368/0.09878=)  35 times more than that purchased in Case #2.

So the next time you plan to fill-up your car tanks, remember it’s not just how many dollars you save but also how many miles you drive to get that gas. The formula takes into consideration both these factors and thus gives practically guided numbers. Once you decide how much money you want to spend on gas this week/month, now just calculate the ExtraMiles and go from there.

Bargain Babe’s two cents: I like the concept of ExtraMiles, but think it is important to take into account time spent filling up and actual savings. How many people spend the same amount on gas each month? Not me. But I’m curious, what do you think of the ExtraMile approach?

• Check the AAA Fuel Gauge Report to monitor trends. The site lists the average gas price for today, yesterday, a week ago, a month ago and a year ago. You can look at prices nationwide, by state or major metro region. Data comes from 100,000 gas stations.
• Search MSN’s gas map for the best prices near your home or on your route. A green marker tags the lowest price, a red marker notes the highest. You can zoom in or search by state, city, and zip code.
• An alternative to the MSN map is GasBuddy.com, which lists gas prices that have been spotted and entered into the site by users. Search for prices by location, grade of gas, or brand.

Tips to conserve gas (no silver bullet here, folks):

• Carpool, take public transit, or telecommute to work
• Drive sensibly (read: slowly). Speeding can increase gas costs by 40 percent!
• Ride your bike whenever you can, it’ll save you money and get you in shape
• Select the highest mpg vehicle available to you (in my neighborhood a few folks have converted golf carts!)
• Consider buying a hybrid, scooter/motorcycle, or other high mpg vehicle

Some people swear by additives, but I’ve never seen any hard evidence. Do you put anything extra in your gas tank?

Step 1. Measure the average miles per gallon (a statistic my car tracks) at six different speeds for a distance of two miles. Repeat twice so there are three sets of data for each speed (see chart below).

Step 2. Average the miles per gallon at each speed.

Step 3. Extrapolate the cost of the trip per mile at each of the six speeds based on the average miles per gallon for that speed. I paid $2.63 a gallon when I filled up before driving home so this is the price I used. The formula looks like this:

1 mile x 1  gallon/average miles at a particular speed x $2.63/1 gallon of gas =

Driving one mile at 85 mph costs $.095.

Driving one mile at 80 mph costs $.085.

Driving one mile at 75 mph costs $.086.

Driving one mile at 70 mph costs $.075.

Driving one mile at 65 mph costs $.068.

Driving one mile at 60 mph costs $.068.

Step 3 raised a few questions, namely why the cost of driving at 75 mph was slightly higher than driving at 80. And is my car really as efficient when I drive at 65 mph as when I drive at 60 mph? More testing is needed to answer these questions.

Step 4. Determine the time it takes to drive one mile at each speed. The formula looks like this:

1 mile x 1 /miles per hour x 60 minutes / 1 hour x 60 seconds / 1 minute =

At 85 mph one miles takes 42 seconds.

At 80 mph one miles takes 45 seconds.

At 75 mph one miles takes 48 seconds.

At 70 mph one miles takes 51 seconds.

At 65 mph one miles takes 55 seconds.

At 60 mph one miles takes 60 seconds. (This is also the speed at which trucks will pass you en masse.)

Step 5. Compare gas costs with time savings.

Driving at 85 mph costs $.027 more per mile than driving at 65 mph but saves you 13 seconds.

For a 30 mile commute, this adds up to $.81 more at a savings of 6 minutes and 30 seconds.

For a 400 mile road trip, this adds up to $10.80 more in gas but cuts one hour and 27 minutes off the trip.

For a driver who puts 10,000 miles on their car each year, driving at 85 mph costs an extra $270 but saves 36 hours.

Conclusion: The cost of driving fast – at 85 mph instead of 65 mph – is roughly $.03 more per mile, or about 40 percent more. The actual difference, $.027, looks small but adds up quickly. Slow down and drive at 65 mph, which is the speed limit on California state highways (with a few exceptions), and you will save roughly 30 percent.

During the tests the terrain was mostly flat and wind was minimal. I collected data while driving but did the calculations in the safety of my non-motorized home.

Questions. What are the indirect costs of driving fast or of driving slow? Did you cause an accident or get a ticket for driving at 85? If you slowed down to 60, did other drivers honk at you? I noticed my car was so much quieter at 60!

Kelly Blue Book and Edmunds are the gold standard for checking the going rate of new and used cars.

CarBuyingTips.com has a slew of resources, including how to negotiate thousands of dollars off the price of a new car, dealership ratings, and getting pre-approved for an auto loan.

CarsDirect.com has a searchable database of incentives dealers are offering, including four for college graduates.

Bankrate.com has a calculator that compares the financial benefit of a rebate v. a low-cost loan

Cars.com has a green buying guide that covers hybrids, cars that run on ethanol, diesel engines and high-mileage cars.

10 confessions of a car salesman is the story of a reporter who goes undercover for Edmunds.

CNN Money has 10 things to do before you start your research.