Does Driving to a Cheaper Gas Station Save Money?

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How’s it going everybody this is victor bush here’s the situation you just passed by a gas station that sells gas for four dollars a gallon you drove a mile down and then you suddenly see the gas station selling it for four dollars and 10 cents it’s a little bit more expensive but should you drive back to fill up at a cheaper gas station or not is this even worth

It today i’m going to offer you a quick way to calculate if you should go back or not and other ways of saving money on gas this video is brought to you by the moomoo app moomoo is another free trading app that’s giving away free stocks the app itself is owned by futu incorporated they are a member of finra and also sipc so you can be sure that your money is safe

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Worth about 57 check out my referral link down in the video description below well this is quite a problem because you have a lot of variables here and many people is not going to sit around trying to calculate if it is cheaper or not many people will drive to a cheaper gas station just because it’s 10 cents cheaper and this would be considered penny pinching the

Irs has figured out a good round number for everybody to use this includes depreciation of the car the gas itself insurance all the other associated costs with running a car but this may not apply to everyone sometimes when you drive a car it might be cheaper other times you might be driving a very nice car and it’ll be more expensive for you now let’s say your

Tank is mostly empty and you need to fill out about 10 gallons it’s 10 cents cheaper therefore you’re gonna save one dollar if the irs is correct and it costs you 56 cents to drive to this gas station by the time you drive back it’s two times that which is a dollar twelve this is more expensive than the one dollar that you save on gas and the time that it takes

You to go there and come back i’m going to share what i think of this irs 56 cents per mile to me i used to think this was kind of high because i drove a really cheap car the gas alone depending on how much you pay for gas and the gas efficiency of your car it’s gonna hover somewhere about 13 cents for every single mile so this is much less than 56 cents so where

Does the rest go the rest is 43 cents you already sunk in a bunch of costs in buying the car if let’s say you put 10 000 additional miles on the car you’re gonna end up having to change the oil a lot more often you’re gonna have to change the tires a lot more often so this maintenance cost is gonna increase as you drive the car more ask the uber drivers who heavily

Uses their car their car would reach end of life much quicker and then at the end of the life of the car they have to buy a new one things you need to know to figure out if it’s worth it to drive to that cheaper gas station one of them is how much gas you’re going to fill up the more that you feel of a cheaper gasoline the more you’re going to save so if you drive

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Really far just to save 10 cents and you fill up one or two gallons of course this is not going to be worth it so you want your gas tank to be as empty as possible so you can put a lot of gas in there for your effort of going to this cheaper gas station it’s best practice to fill up your gas once your gas reaches a little bit less than a quarter tank or so so you

Have a little buffer room to do whatever you need you’re not going to run out of gas in the middle of the road or anything but if you are on a regular commute to and from work and it is very very predictable on how many miles you drive then you can cut a little bit closer to an empty tank and then when you do fill up you’re going to fill up a lot more this also has

A benefit of you going to the gas station a little bit less over time because each time that you fill up your gas you are putting more in another thing to think about is how expensive is your car a typical car lasts around 150 to 200 000 miles now not everyone’s gonna drive it until the end of life many people just drive it for a few years they sell the car they

Get a new one maybe they lease their car but even if you use the car for less than the entire lifespan of the car you can still use this formula to figure out how much it costs you every single mile the idea being if you consume let’s say 30 000 miles and then sell the car well you’re going to depreciate the car accordingly and people are going to pay a little bit

Less for your car for having more miles so look if you bought a 70 000 car it’s gonna last 150 000 miles this is costing you 47 cents a mile not everyone’s gonna have a car that cost seventy thousand dollars maybe it’s fifty thousand dollars so you do the same thing it’s thirty three cents a mile for a thirty thousand dollar car it’s going to cost you twenty

Cents a mile so you can see the cost per mile varies greatly depending on the type of car that you have if you have a fancy sports car it makes it all that much not worth it to drive to a gas station that is only 10 cents cheaper you also need to add in maintenance and tires in my experience it costs about two thousand dollars a year depending on the car again

And you might drive let’s say 10 000 miles so just maintenance itself you know like the oil change the tires which are very expensive maybe like a thousand dollars right there it’s going to cost you about 20 cents per mile and then for insurance you probably don’t need to add a little bit more insurance costs just because you drive to a gas station a little bit

Farther away because the additional amount of miles is not all that much you’re going to use your insurance anyway so for this calculation you don’t have to factor in insurance frugal minded people would also want to go to costco but every single time i see people line up it’s about five or six car deep on off peak hours it’s zero you just go right in and then

You can fill up but most of the time during the day i average about five to ten minutes or so so this is a waste of time the strategy i’ve come up with is you only want to get costco gas if you happen to pass by a costco on route to wherever you’re going or maybe if you live next to a costco then yeah go and get it at off-peak hours however i personally don’t

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Have a costco membership but you can go with a friend to buy gift cards these gift cards will allow you to use them at the gas station and you don’t need to you know stick in another membership or anything just use those gift cards and then you can fill up at costco if you really want to but in my experience i don’t use costco gas all that often because i have a

Cash back credit card either 5 or 10 and if you’re lucky enough to get a 10 cash back credit card on gasoline it’s roughly equivalent in pricing for if you find a cheap gas station using 10 off cashback compared to costco gas prices those are roughly equivalent but if you use a five percent cash back it’s still a little bit more expensive than costco gas now how

Do you find the cheapest gas station go on gasbuddy.com you can go on your mobile phone look around on a map and figure out where is the cheapest gas before you actually go to it you definitely don’t want to just hunt around driving your car to go find cheap gas you want to have an internet access on your phone and then you can pinpoint right where the cheapest

Gas station is on route to wherever you’re going i figure i also add in some tips on how to save money on gas as well so here it goes you got to make sure you inflate your tires properly you probably need to check every single month or so if you have tires that aren’t leaking too much having deflated tires can reduce your mileage by a couple miles per gallon this

Becomes significant if it’s three miles a gallon this is 10 less miles that’s essentially paying 10 percent more in your gasoline you should also drive like a granny when you accelerate a lot you burn more gas accelerate slowly and you’re gonna use less gas and also limit your top speed to what 65 but that might be too slow so maybe 75 is your top speed don’t go 90

Miles an hour don’t go 100 miles an hour it really eats into the gas remove all heavy things from the trunk drive with the windows up because this is more aerodynamic if you have the windows down the wind goes into the car and it does this fluttering thing and it adds additional drag to the car speaking of drag if you have a bicycle rack in the front of your car

The back of your car the top of your car all this reduces your gas mileage so if you’re not carrying a bicycle you really should remove that bicycle rack and like i said use a cash back credit card use the lowest octane for gas i know some people like to baby their car their car says use only octane 93 and then you’re like oh my gosh i need to follow what it says

But hey i drove a porsche boxster and i put in the lowest grade the entire life of the car and it still operated until i use it until it’s dead like 180 000 miles or something and to understand why this works is that most modern cars even if you put in a low octane rating it has a thing called anti-knock control in the computer the higher the octane the slower it

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Makes the fuel burn when you have aerosolized gasoline and you compress it sometimes it might explode the octane rating keeps it from exploding because you want to compress it to a certain point and then you ignite it and then it explodes right so if it explodes before your intention this is knock this is essentially going to press it it explodes and then push

Back and then all of a sudden you can hear some kind of pinging in your engine so the octane rating is to make it so that the fuel won’t explode so early but modern engine these days will adjust the timing and all that so that you don’t have all this knocking and stuff so essentially when you put in lower octane rating you will indeed feel that there’s a tiny bit

Less power if you’re doing daily commuting it’s not noticeable however if one day you go oh i feel a little rich i’m gonna put in some 92 octane baby you’ll bring a day i like you i’m gonna put in 92 octane today baby you’re gonna suddenly feel like hey how come my car has a little bit more power now technically the energy content is supposed to be roughly the

Same it’s tuned for that octane rating so that it has peak power when you use that kind of octane there is controversy if you should get gas in the morning or in the evening because there is a temperature difference gasoline has a certain thermal expansion when it’s hot it becomes a few percent bigger in volume so technically you want to get your gas as cold as

Possible and if the pump is measuring at a certain volume you’re gonna get more gas when it’s cold but gasoline station adjusts for this for example if you’re in canada right it’s colder they’re gonna go okay you know it’s around this kind of temperature we’re gonna charge you this amount for this kind of volume those tanks where it stores most of the fuel it’s

Underground it’s quite insulated no matter how hot you get you know ambient temperature reaches 100 or something it’s really hard to get underground and make all that fuel change in temperature so if you’re a gas station that is often used it really doesn’t really matter if you get it in the morning or at night the temperature of the gas is going to be roughly

Around the same the thing you do need to watch out for is if you go to a gas station that looks like it’s in the middle of nowhere and no one has been using it and it’s really really hot then perhaps the first maybe half gallon or one gallon of fuel that’s stuck in the fuel pump might be quite hot and that portion of it you know you might not be getting as good

A deal but as soon as the fuel from the tank comes up and goes into your car the temperature of that is whatever it is in equilibrium down in the tank so then it doesn’t make that much of a difference because only the first gallon or so is gonna have that thermal expansion lastly if you don’t want to pay a lot for gas gas is four dollars a gallon in california if

You don’t want to pay for this don’t buy a gas car or buy a electric car if you can thanks for watching this video don’t forget to give me a like and subscribe for more thanks for watching you

Transcribed from video
Does Driving to a Cheaper Gas Station Save Money? By BeatTheBush

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