Feeling the Pain at the Pump? Consider a Car Title Loan

March 28, 2014

Some are predicting that gas prices will reach $5 per gallon. At that rate, you may be feeling the pain at the pump if you drive frequently.

According to the Federal Highway Commission, the average American between the ages of 20 and 34 drives 15,098 miles per year. The average for the 35 to 54 age group is a little higher at 15,291 miles per year. So, the average working-age driver drives over 15,000 miles pear year, which eats up a lot of gas.

Example

Suppose that you own a 2005 Ford Crown Victoria. According to Mpgbuddy.com, your vehicle gets 21 miles per gallon. Let’s assume that you are a working-age driver and we’ll take the average of the previously-listed miles per year -15,195 miles – and use that as your miles driven. This means that your vehicle uses approximately 724 gallons of gas per year.

So, as gasoline prices typically peak in the summer, let’s see how much you could expect to pay for gasoline this summer. At 724 gallons per year, you could expect to use 181 gallons over the summer. According to AAA, the average national price for regular gasoline is $3.77 at the time of this writing. Lets see how much you can expect to pay for gasoline at this price, at $5 per gallon and if it goes even higher:

 

Price % Increase in Price Increase in Costs Total Gas Expenses
$3.77 N/A N/A $682.37
$5 33% $222.63 $905
$6 59% $403.63 $1,086

 

As you can see, a price increase to $5 would result in you having to pay $905 in gasoline purchases over the summer – a 33 percent increase over current prices, given this example. That’s well over $200 more than you’d have to pay over a 3 month period with the current prices, which have risen every day that I’ve checked recently. If the prices climb even higher to $6 per gallon, you would incur over $1,086 in gas expenses just over the summer. That’s a lot just to get from point A to point B.

What Can You Do?

If rising gas prices are eating away at your budget, you’ll have to do something to stay above water. You could try cutting back on rent, but that usually means moving to a less desirable area. Let’s face it, most of us don’t want to move into a worse neighborhood, so that is not the best option out there.

Food prices have risen in recent times, so cutting back on food costs may be difficult. That leaves you with very few options left.

Consider a Car Title Loan

Did you know that you can take out a loan on your car?

By getting a car title loan, you can use your vehicle’s title as collateral. This means that you typically won’t have to give up your vehicle, not even on a temporary basis. This way, you can still drive to work or wherever else you must go and pay for gas while you find a new way to generate more income or cut back on expenses. It could be the perfect way to keep your budget under control during the summer months, when gas prices are typically at their highest.

At Car Cash Loans, you won’t have to go through a credit check, so your credit history is of no concern to them. They will assess the value of your vehicle and may offer you a loan based on that value. The entire process typically takes around an hour, so you probably won’t have to wait nearly as long as you would at a bank. It can be a great deal, so consider this option if you need money to keep up with high gas prices.