The average Saskatchewan household spends more than $10,000 per year for transportation costs. If you are trying to save money, transportation is one area where you might be able to cut back on spending.

I found some good tips on saving money on the treehugger.com website and in the discussion forums at wesabe.com.

Buy car with cash

When you get a loan to buy a car, you are spending more than you can afford. The loan interest you pay needlessly adds to the cost of owning your car.

Used car

Buy a used car. If you buy a brand new car, the market value will drop by thousands of dollars as soon as you drive it off the dealer’s lot.

To avoid getting stuck with a lemon, use the car’s Vehicle Identification Number (VIN) to get a carfax report (carfax.com). Check for major repairs and damage from floods or accidents.

Maintenance

Servicing the car saves money in the long run by extending the operating life of your car. You defer the cost of replacing your car for one or two more years. You also reduce the chance of being stranded and having your car towed to a service station.

Change the oil regularly. Maintain proper tire pressure for better gas mileage (http://www.treehugger.com/files/2005/06/proper_tire_pre.php).

Clear out your garage to make room for your car. Parking in your garage helps to keep your car warm in winter and cool in summer. You will have less need to idle your car in January and to use your gas-guzzling air-conditioning in July.

Drive sensibly

Avoid driving aggressively. Maintain a steady pace. When you are heavy on the accelerator and heavy on the brakes, you waste fuel. Travel in off-peak times to avoid traffic congestion and waiting at red lights.

Combine errands into one trip. Plan the logistics and itinerary for the most efficient route. The shortest route is not always the most fuel efficient if you have to stop frequently. A GPS unit can quickly pay for itself by saving time and gas.

Parking

Do you park in an expensive parking space next to your workplace? If you have to walk a few blocks to cut your parking costs in half, your health will also benefit from the regular exercise.

If you spend five minutes driving around the parking lot to look for a really close parking space, you will use more gas. Walking a little farther might do you good.

Ride public transit

If you live close to a bus stop, then owning a second car is probably an expensive extravagance. You can claim the cost of your transit pass on your income tax return. The tax credit on $500 of bus passes can save you up to $75.

When you commute to work consider walking, biking, carpooling or riding a bus. You can cut down on gas and maintenance expenses. You eliminate parking costs.

Sell extra car

Does your household have one car per person? In many countries, a car is a luxury.

Especially if you don’t have children at home, selling an unnecessary car can free up $10,000 per year. Renting a car or taking a cab when necessary is less expensive than owning a second vehicle.

Walk or bike

Burn calories instead of gasoline. Walking or biking to work not only saves you money and keeps you fit but it helps the environment, too. You might have to move to a better location for non-car commuting to be feasible.

If you can live comfortably, while spending less on transportation, you will be able to get out of debt faster and make larger RRSP contributions. Then, once you are retired your good habits should make your savings last longer, too.

Terry McBride is a member of Advocis (The Financial Advisors Association of Canada). This article provides general information and should not be considered personal investment or tax planning advice.