Tips, advice, and the latest news from the savings world.
May 24, 2012
By Katie Bryan, America Saves communications manager
Earlier this week, the Consumer Federation of America released the Top 10 Reasons Consumers Want 54.5 MPG by 2025. And not surprisingly, two of the reasons on that list are that the new rule will save consumers money.
“What’s not to like?” said Mark Cooper, Director of Research for CFA, of the 54.5 miles-per-gallon (mpg) by the year 2025 standard, which is expected to be adopted late this summer. “Better gas mileage means more money in Americans’ pockets. Last year household gasoline expenditures set a record, reaching an average of over $2,850. Consumers can’t stomach these prices and the new standards are the only way they’re going to get some relief.”
Below are the money saving reasons from that list:
- The standards lower the total cost of driving from the minute you drive off the lot. For the typical consumer who takes out a five-year auto loan, the monthly gas savings are greater than the increase in the monthly payment needed to buy a more fuel-efficient vehicle. Over the life of a vehicle covered by the new standards, the average buyer will bank a net savings of $3,000.
- Consumers value fuel-economy -- it's a worthwhile improvement in quality. It’s expected that the new standards will increase auto prices by about $300 per year over the next 15 years. That is less than the increases the automakers have imposed on the public by voluntary increases in quality over the past 15 years and today. Better fuel economy is priority #1 for enhancing quality.
What do you think about enacting a 54.5 MPG rule by 2025? Let us know on our Facebook page.
By Adrianna Domingos-Lupher, AFC®
Owner, Military Money Chica, Personal Finance Blog
I’m sure you’ve all met my friend, Mr. Murphy. He’s a frequent visitor to our home and is notorious for showing up when we least expect it. Mr. Murphy can be quite an expensive houseguest with little regards as to how his actions will impact your finances.
Murphy’s Law Hits Home
Mr. Murphy’s most infamous visit to our home took place just as we bought our brand new front-loading washer and dryer. As we basked in the glow of our newly purchased and installed clean machines, Mr. Murphy dropped by. Unannounced. As usual. And when he visited, he really settled in. Within a month of our large-scale washer/dryer purchase our sprinkler system pump broke AND our air conditioning compressor bit the dust. Thanks a lot, Murphy. Thanks. A. Lot.
The total damage of the trifecta: $1200 washer and dryer (planned purchase), $600 water pump (unplanned), $600 A/C compressor (unplanned).
How on earth were we going to pay for all of this? Granted, we’d set aside money to cover our washer and dryer, but we still had a bit of sticker shock. It was no small purchase. When the water pump and AC went, it just felt like a bad dream.
I don’t know about you, but I hate spending money I didn’t plan to spend. It just hits me in the pit of my stomach.
Fortunately, I was one step ahead of Mr. Murphy.
Emergency Savings: Your Best Defense Against Murphy’s Law