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Save Money on Gas – Buy a Scooter

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Buy a scooter… don’t be afraid

While I’m fully aware a lot of people think driving a scooter is wimpy, dorky, etc., I’ll also challenge those closed minded, old-fashioned opinions as being too concerned with what others think.

It makes sense. Our ability to think outside the box has been beaten out of us by a consumeristic culture and persuasive advertising.

Despite numerous benefits and few draw backs – unless you’re a college student – owning a scooter is relatively uncommon in most parts of the United States – not so in other parts of the world.  When considering the pro et contra, buying a scooter can stack up quickly into an economically wise purchase.

Scooters, moped, and motorcycles

In the interest of this article, scooters are synonymous with mopeds and defined as follows:  a 2-wheeled vehicle with a saddlelike seat mounted on the footboard and being propelled by a motor – and for the purpose of economy let’s focus specifically, but not entirely, on scooters of the 50cc motor variety (to be further explained later in the article.)

A scooter ≤ 50cc and a motorcycle ≥ 51cc. CC = cubic centimeters and refers to engine size (volume of air and fuel mixture intake in a cylinder bore.)

Although some states differ, most states consider any motorized bike 50cc or less to be a scooter and any bike 51cc or higher to be a motorcycle… a very important distinction because many of the benefits below do not apply to motorcycles.

Since scooter/moped laws differ from state to state be sure to check your applicable state laws pertaining to helmets, insurance, registration, etc.

Let’s take a look at some benefits, along with a few buying tips, as seen through the eyes of this fledgling scooter owner; but first, some helpful details about my scooter.

My scooter

My scooter is a 2009 JCL model MP50B.  I purchased it in mid April 2010 for $600 despite a KBB value of $710 at the time of purchase – I love a good deal.  The bike had been driven only 385 miles, was in pristine condition, and ran like a top.  One month and 450 miles later… everything is on the up and up and I couldn’t be more pleased with my purchase.

Save money on gas

Driving a scooter will save you a boat-load of cash on gas.  Let’s look at the specifics of how much I have saved in just one month.

Since purchasing my scooter one month ago (at time of writing) I have driven 450 miles on 4 tanks of gas.  The tank is 1.32 gallons and the scooter gets 100 mpg, using an average gas price of $3.00/gallon I have spent $13.50 on gas compared to the $90 I would have spent driving my 2000 Jeep Cherokee Sport, which gets a mere 15 miles to the gallon.

Conclusion?  My scooter gets 6.667x better gas mileage than my Jeep and should pay for itself in one driving season in gas savings alone.

Save money on vehicle maintenance

Every mile I drive the scooter means one less mile on my Jeep.  Maintenance and parts for my Jeep are much more expensive than for my scooter.  I can perform maintenance on the scooter myself and replacement parts are much less costly.

Save money on insurance and registration

Again, although some states may differ, in Michigan a 50cc scooter does not require insurance coverage.  The only cost associated with driving my scooter, other than gas, maintenance, and repairs… is the registration tag.  Michigan charges $15 for a 3 year registration sticker.  That’s it folks, $5/year.

Save money on a helmet

In many states a 50cc scooter rider is not required to wear a helmet.  While many choose to wear a helmet anyway, they are not required to by law.  This could obviously draw a lot of comments, but putting aside all that debate, the fact remains… many state laws do not require a helmet on a 50cc scooter.

Buy a scooter used

Just as purchasing a slightly used vehicle is often a better decision than buying new, the same is true for scooters.  Here are my tips for those looking to buy a scooter used:

  1. Do not buy a scooter from a college student. No offense young’ens… but I was a in college a few years back, which is precisely why I’m telling people not to buy a scooter used from a college student.  Sure, there are always exceptions to the rule but there is a reason their insurance premiums are high, so use common sense.  🙂
  2. Buy a scooter from older folks. Many RV’ing retirees buy scooters for buzzing around RV parks and campgrounds while traveling.  The truth of the matter?  They don’t usually end up using them much and tend to take great care of their possessions.  This means low miles, routine maintenance, fewer wipe outs, and no beating on the scooter.  Find a good price and you have yourself a recipe for a good buy.
  3. Use KBB to estimate buying price. Before you go test drive a scooter, be sure to check out the Kelly Blue Book Motorcycle Retail page to determine a solid buying price.  Simply pick your year, make, model and size to reveal what a low-mile bike in excellent condition is worth.  Print the page and take it with you as a bargaining chip (unless they’re asking less than the bike is worth of course.)
  4. Use Craigslist. Beyond the obvious benefit of using Craigslist, I recommend using a CraigsList search/notification app.  Said application will allow you to input a search term – like “scooter” – and set up alerts for all newly placed relevant ads so you can be the first to contact the seller.  That is precisely how I found my, virtually brand new scooter for such a great price.  I was the first to call, first to visit, first to make an offer, and it paid off.
  5. DO NOT FINANCE. If you don’t have the money saved and previously budgeted… don’t buy anything.  Period.

Wear a helmet

Yes, even if you don’t have to, and yes, even though I listed it as a possible money saving benefit above.  If you’re not going to wear a helmet, consider purchasing a windshield, and a the very least be sure to wear some type of eye protection like eye glasses, sunglasses, or Dumb and Dumber scooter goggles.  😉

Perform regular maintenance

To ensure optimal operation and to extend the life of your scooter be sure to follow the maintenance schedule supplied by the manufacturer.  Most everything is routine like checking/replacing engine oil, gear oil, air filters, tire pressure, etc.  You will not need to hire a mechanic unless you’re diametrically opposed to elementary mechanical maintenance.

Dress warm and carry extra clothing

Even in a northern state of Michigan, I can easily get 7 months of ride time each year, but not without proper winter gear.  If you choose not to wear a helmet, when it’s chilly out you’re well advised to wear a winter cap; while you’re at it… don’t forget the gloves.  Be sure to wear a jacket that seals off your neck and wrists, since failure to do so can turn a cool ride into a freezing cold ride really quick.

Scooters are cool

Don’t let anyone fool you.  When you drive a scooter you save money hand over fist, you get to ride down the open road, and of course… chicks dig guys on scooters.  Just ask my wife.  😉

What are you waiting for?  Go open an Capital One 360 savings account, label it “Sweet Scooter Fund,” and start saving for your soon purchase!

Car Repairs – Scrap it, Park it, or Fix it?

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Have a question of your own?  Ask DFA writers for free!  🙂

Job loss – prepare by saving or debt reduction?

DFA reader Benedictus asked:

  1. Should I spend another $6,000 to fix a vehicle that is only worth $4,800?
  2. Should we just park the vehicle until we can save enough money to fix it and continue to make $291 monthly car payments and $75 monthly insurance payments until we can save up $6,000 (which would certainly be a year or more)
  3. Should I sell the minivan for parts/needed repair and use that money to buy another older used car with unknown problems and high mileage?
  4. Should I borrow the money to do the repairs, spending more to repair it than the vehicle is even worth, and having to pay both a car note and repair note?
  5. What is the best angle, financially, to deal with this situation?

Car Repairs - Scrap It, Park It, or Fix It?We have a 2006 Dodge Caravan Minivan with 52,000 miles that we purchased new in 2006. It has a 3-year/36,000 mile warranty. We had the van in the repair shop and found out yesterday that the entire engine will have to be replaced at a cost of +/- $6,000. We owe about $5,800 on the vehicle. Trade-in is around $3,200 and private party value is about $4,800. However, neither of those two figures matters because it would have to be repaired first before we sold it or traded it in. WE DO NOT HAVE $6,000 TO REPAIR THE VEHICLE. My husband just recently had to take a second job delivering pizza just to make ends meet and we just started working on re-building an emergency fund after our previous $15,000+ emergency fund was depleted from him being out of work for 5 months before he got the supplemental pizza delivery job. I don’t want to borrow money to fix the car because I would be paying a car note and a repair note. We could almost buy two older used vehicles for what it is going to cost to repair our minivan and I would have to have a vehicle large enough for a family with three children. Then I would be getting an older car with someone else’s problems. Even if we purchased two older vehicles instead of repairing my minivan, then I have a useless 3 1/2 year old vehicle sitting in my driveway. The only solution I could come up with was for us to park the vehicle and be a one-vehicle family until we could save the money to fix it, but I hate to keep making $291 monthly car payments and $75 monthly insurance payments on a vehicle we can’t even drive.

~Thank you, Benedictus

What Makes The Most Financial Sense?

There are many variables here, so naturally you have questions. I will try to answer all of them beginning with your last, “What makes the most sense financially? The answer to this question is usually, “Do not go further into debt.” In fact, owing money on this vehicle is a big part of your dilemma. Adding more debt will only compound the problem. Therefore, I would say the one thing you absolutely should not do is borrow money for the repairs (this is Debt Free Adventure after all.)  With that option off the table, we will look at the pro’s and con’s of the other possibilities you listed.

Scrap It?

In situations like this, we tend to feel let down by the vehicle we have. This makes us want to junk what we have, and try for anything different. Caution is warranted, as disappointing as it is, solid vehicles break down sometimes, and recklessly jumping to another vehicle may not alleviate the problem. As you noted, few people sell perfectly good cars, so anything we buy will have problems of their own. That being said, if you have to have another vehicle now, a used car that you can afford may be the only option.

Park It?

Unfortunately, the payments will have to be made no matter what you decide. Since you owe more than the vehicle is worth in its present condition, whether you scrap it, park it, or fix it, you will have to keep paying on the car note. More unfortunately, it is likely that you will have to maintain full insurance coverage as a condition of the car loan even if you park the vehicle. Check your loan documentation to find out for sure. If the option is available, you could save money by parking the van, and only maintaining the comprehensive coverage.

Fix It?

You may not have the money now, but once you save up the money, this is still a good option. While the vehicle may not be “worth” that much, that is not an important consideration. Vehicles are an expense, not an investment. We spend money on vehicles for transportation, and eventually they end up being worth $0. What that means is you are asking the wrong question. The question is not whether it is worth $6,000 to fix your van, it is whether $6,000 would buy a better vehicle. The answer depends upon your local used car market, but consider that because you bought this van new, you know if it has been maintained. That is worth something and should be factored into your calculation. If a better vehicle is available, buy it, if not, fix the one you have. Finally, before you make a decision on this point, I would get a second estimate on the engine. $6,000 sounds a little steep to replace the engine in a domestic vehicle; I would have expected it to be closer to $4,000.

In Summary – What is the best way to deal with this situation?

  1. Should I borrow the money to do the repairs? No.
  2. Should we continue to make payments while we save? Yes, the payments must be made no matter what you decide as the van is worth less than you owe.
  3. Should I spend $6,000 to fix a vehicle that is only worth $4,800? Yes, if a better vehicle cannot be bought for the same amount.
  4. Should I sell the minivan? No, better to still have the van after making payments, than to sell it and make payments on nothing.

I think you were on the right track before you wrote to us. If I were in your situation, I would live for a time as a one-car family. Your financial situation makes this necessary. While it is no fun paying for a broken car, a contract is a contract. Learn from the experience; buy your next car in cash. Save your money for the repair; next year you will be a two-car family again; your low-mileage van will have a brand-new engine, and you will be one step closer to being debt-free.

Do you have any other advice for Benedictus?

Have something to add?  Please share your wisdom and experience and help point Benedictus in the right direction.  Thanks!

Have a question of your own?  Ask DFA writers for free!  🙂

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