Monday March 22, 2010 3:53 AM ET
SmartMoney
Published June 26, 2008  |  A A A
Deal of the Day by Lisa Scherzer (Author Archive)

5 Ways to Cut Commuting Costs

UNTIL TWO YEARS ago, 37-year-old systems analyst Justin Moore drove his Ford (F) F-150 to work every day. As gas prices climbed, the pickup, which gets just 12 miles to the gallon, soon became a financial liability. To fill up his truck, Moore shells out $87 — a sum that's forced him to rethink his commute.

In 2006, Moore, who lives in San Antonio, bought a Ford Escape hybrid that gets 34 miles per gallon and started driving it to work two days a week. Last month, he took his fuel-reduction campaign one step further by biking to work another two days a week. Between the bike and the hybrid, Moore figures he saves about $104 a month in fuel costs. And despite sweating through 100-degree bike rides home, he says, "I feel good because I'm on a bicycle instead of in my gas-guzzling truck."

With gas prices topping $4 a gallon, commuters across the country are looking for less expensive ways to get to work. Public transportation usage, for example, rose by 3.3% during the first quarter, translating to roughly 85 million more trips than the year-earlier period, according to the American Public Transportation Association (APTA).

From riding a city bus to pedaling down the highway, here are five ways to get out from behind the wheel and cut your own commuting costs:

Whether subway, bus or train, transit systems are also getting hit by pricey fuel costs. With record ridership weighing heavily on commuter systems, riders should be aware that a large number of public transportation agencies plan to increase fares and delay system upgrades, according to a May survey by APTA. Nevertheless, taking public transportation is almost always a cheaper alternative to driving solo, especially for those with long-distance commutes. To learn more about public transportation alternatives in your area, check APTA's web site. Ask your boss if he can do anything to ease your commuting costs. While some employers may allow employees to work from home at least one day a week, others may offer a monthly gas stipend. Under the IRS's Transit Benefit Program for 2008, companies can provide workers with up to $115 a month in tax-free benefits for public transit and vanpools. The tax code also allows employees to use pretax dollars to pay for transit passes, vanpool fares and parking. More bike riders mean fewer cars and less congestion. That's why cities like New York and Baltimore are making streets more biker-friendly. Between now and July 2009, New York's transportation department plans to add 110 miles of new bike paths and lanes.

Other cities, including Chicago, Boston and Portland, Ore., are considering bike-sharing programs, which allow registered members to pick up a bike in one part of the city and drop it off somewhere else, says Paul DeMaio, founder of MetroBike LLC, a bike-sharing consulting firm. Washington, D.C. will become the first U.S. city to implement a bike-sharing initiative when — in partnership with outdoor advertising company, Clear Channel Outdoor (CCO) — it launches SmartBike DC next month. Membership will cost $40 a year, and each use (for up to three hours) is free.

Local government agencies and regional bike advocacy groups, such as the Washington Area Bicyclists Association and BikeArlington.com, can serve as helpful biking resources, says DeMaio. Also, check out Paul Dorn's Bike Commuting Tips site, which offers advice on everything from safety to parking.

Even though the average van gets a measly 13 miles per gallon in the city (17 on the highway), vanpoolers can take solace in the fact that — with 13 or so passengers in a van — fuel economy per passenger is stellar.

For commuters, the savings are evident: A typical vanpooler who commutes 80 miles a day round-trip pays $120 a month to use the service and still reaps savings of about $140 a month, or $1,680 a year. (See footnote for calculation. Costs will vary depending on city). Michael Norvell, vice president of business development for vanpool service operator VPSI, Inc., says the company's vanpools grew by more than 11% so far this year.

To check for a service in your area, go to VPSI's web site. Also, many local governments provide vanpools for residents. Montgomery County, Md., for example, offers help to drivers who want to form a vanpool. Check with your local department of transportation for more information.

In dozens of cities, public-private alliances called Transportation Management Associations offer incentives to residents who join a carpool. A Better City Transportation Management Association in Boston, for example, gives those who sign up to share rides, $35 a month toward gas for six months. For information on individual TMAs, contact the TMA Council at the Association for Commuter Transportation.

Don't have a TMA in your area? Seek out regional ride-shares online. Sites like RideshareOnline.com, which serves Washington and Idaho, and eRideshare.com, which serves markets nationwide, are free for commuters to use.

Also See:


Footnote: Assuming gas cost of $4 a gallon, 22 working days a month, an 80-mile round-trip daily commute, and that the average model year 2007 fleet vehicle gets almost 27 miles per gallon in fuel economy (according to the National Highway Traffic Safety Administration), a car commute costs $260 a month.

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User Comments
Posted by: antirox
I have a 100-mile round-trip commute (all freeway), driving a 12-year-old Saturn. I've been able to coax nearly 40 mpg by setting my cruise control on 65 instead of 70, turning my engine off at stop lights when I know it will be more than 10 seconds, braking lightly and starting gently. Other than that, there's not much I can do right now. I'm not in a position to move closer to my job and can't afford to buy a hybrid.
Posted by: lloyd08
Current 50-70 MPG Production Cars are available

Models Miles per gallon (MPG)
1 - 83.10 mph CITROEN C1 MPG
2 - 83.10 mph TOYOTA Aygo MPG
3 - 80.70 mph FIAT Grande-Punto MPG
4 - 78.40 mph VAUXHALL Corsa-MY
5 - 76.30 mph FIAT New-Panda MPG
6 - 76.30 mph PEUGEOT MPG
7 - 76.30 mph CITROEN C2 MPG
8 - 76.30 mph CITROEN C3 MPG
9 - 76.30 mph VAUXHALL Corsa-MY2006 MPG
Posted by: violette
Biking is great, but many areas don't allow biking on highways. In the Boston area, even if it were allowed, you'd be taking your life in your hands to do so. A lot of city streets aren't conducive to it, either. If the physical aspect of biking is too much for you -- some people have bum knees and such -- check out electric bicycles (Schwinn has some nifty models). These have motors that can give you an 'assist' up hills or if you get tired. Electric scooters are another good zero-emission option. Many of these have the advantage of greater range and being classified for road use.
Posted by: ziek
80 miles is a long commute! How about moving closer to work. Or get a job closer to home.
Posted by: Dienices
How about telecommuting for those who can work effectively doing so? Employers can help in this energy crisis by changing their mindset against remote workers. If we can outsource work to India and China, why not 'outsource' it 20 or 40 miles from the office to workers who will be showing up on-site the same week to account for what they're doing or not doing remotely?
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