How to Save Money on Transportation

By Andrew GoodUpdated August 27, 2025

Note: This post contains affiliate links.Read our full affiliate disclosure.

The average American will spend over $9,000 on transportation this year.

Nine thousand dollars. Next to housing, it’s the biggest expense on the budget sheet.

The good news is, there are a ton of strategies to cut back in this department. The best way is to just not have a car. But that’s not always feasible. I’ll list out 14 different ways you can save on your transportation costs.

Saving on Transportation

1. Ditch the car

Having a car is really expensive.

There's the car payment… and gas and tolls… and insurance… and maintenance… and parking… and registration.

Among all the costs, the average American with a car spends nearly $800 each month.

Crazy, right? That's a lot of money.

So the best way to save on all these costs is to just not have a car. Have you at least entertained the possibility?

I know it isn't feasible in a lot of places, particularly rural or suburban areas. And unfortunately, public transit in the US really lags when compared to Europe. But because the savings are so drastic, it's worth a legitimate thought.

I'm able to get by without a car. But I live in a pretty big city. If you must have a car, consider using it more consciously. Try favoring one of the other options on this list, like carpooling or public transit when available.

And if you can't give up driving altogether, consider ditching that second or third car. Do you really need it?

2. Take public transit

article image

I'm a big proponent of public transportation.

It's cheap, and it's crucial in building a sustainable future.

Now I know, public transit often sucks. Especially in the US, and especially buses. They're unreliable, uncomfortable, and take longer than they should. They just feel like an inconvenience altogether.

Despite the problems, I try to take public transit anyway. Buses, trains, subways, trolleys - they're all cheap and energy-efficient. To me it's worth a minor inconvenience to save money (and the planet).

When you compare the cost to driving a car, the savings are substantial. Gas, depreciation, and parking make driving really expensive. That's why public transit is my favorite way of getting around (next to walking).

3. Carpool

Sometimes taking public transit just isn't feasible. Not everything is connected by a bus or train line.

That's where carpooling comes in. Consider carpooling with one or more of your coworkers. It'll be much more efficient than driving alone.

And it could save you time. If you don't have to drive, you can do other things with that time - answer emails, do research, sleep. Carpooling is a win all around.

4. Walk or bike if possible

If you can walk or bike to work, you'll save a lot of money. That goes without saying.

But even more than that, you'll get exercise while you do it. It's kind of like an investment in yourself. You'll be in better physical - and financial - shape because of it.

Nothing like a little help to get you those 10,000 steps each day.

5. Find Insurance discounts

Car insurance can be a big expense each month.

It's worth shopping around to find the best deals. Rates can vary quite a bit across companies.

Make sure you take advantage of any discounts you may qualify for. If you're a student, have a good credit score, or are a good driver, you may be able to score a discount. Be sure to ask!

You can also reevaluate your needs. If your car isn't worth that much, you won't need as much collision and comprehensive coverage. If you want a lower payment, consider raising your deductible.

These are a few ways you can save on Insurance. Really, it's just about weighing all your options on a regular basis.

6. Refinance your Car Loan

If you now qualify for a lower interest rate than what you're paying, it could be worth it to refinance your car loan.

If interest rates drop, or if you've improved your credit score, you should consider the option. You could lower your monthly payment and total interest.

7. Rent a Car When Needed

If you can avoid renting a car by taking public transit, you probably should. But if ditching your car means you have to rent one on occasion, that's okay, and it still may be well worth it.

Now with services like Getaround, renting a car can be cheaper and easier than ever. You don't have to go through a car rental agency - regular people can rent their cars directly to you. And there's not the typical age restriction. I've used Getaround and had a great experience with it.

So if you ever find yourself needing a car for a special occasion, this is a great option.

8. Rent Your Car When You Can

If you have a car you're not using, you might as well make some money from it.

Getaround lets you rent out your car to others. This is an easy way to earn passive income and offset your transportation expenses.

Loaning a car on Getaround has worked well for some people, but not everyone. It involves some work, and the risk of damage to your vehicle is always there. So know what you’re getting into before signing up.

Nonetheless, you can offset a good portion of your auto expenses by loaning on Getaround. If you don’t use your car all the time, it’s a great option you have.

9. Take Uber or Lyft

article image

Uber and Lyft aren't always the cheapest options, but they can be.

If public transit is available, I usually go with that. But if I'm with a group of people, then Uber and Lyft are often more cost-effective.

If ditching your car means you have to take a few extra Lyfts, it's probably still worth it.

10. Move

Where you live has a big impact on your transportation expenses.

You could live within walking distance from work, or you could live 20 miles away.

You could live near a Subway line, or you could live in a remote area with no public transit.

It's important to factor this in when choosing a place to live. It could make a difference of several hundred dollars each month.

11. Save on flights

Flying is expensive. The average economy class ticket in the US costs about $350. So try to save where you can.

First, you can seek alternatives to flying itself. Look into taking a train or bus. Or driving instead. Those may take more time but are usually cheaper and more fuel-efficient.

If you do get on a plane, then there are ways you can save. Get an airline credit card. Travel on Tuesday or Wednesday. Use a service to alert you of deals. You can read more about saving on flights here.

12. Compare gas prices

You can save some money by comparing gas prices across town. Apps like GasBuddy make this easy.

You can also often buy discounted gift cards at the gas station. And signing up for the station's loyalty program can help you earn free fuel.

You probably won't save a ton of money this way, but it could be enough to make a difference.

13. Plan parking ahead of time.

If you're going downtown, you may want to plan your parking ahead of time. Nothing's worse than scrambling for a place to park, only to settle on a spot for $50.

Be like a Boy Scout and be prepared. With SpotHero, you can do this. You save money by planning your parking days in advance.

14. Telecommute

article image

There are lots of advantages to working from home.

You can sleep in a little later. You don’t have to dress up. You can work from the comfort of your couch if you want to.

Oh, and you don’t have to commute. You avoid that rush hour traffic because you’re already home. Which is super convenient and it saves money. You’ll likely save several dollars in gas (or transit fares) each day you work from home. And if you value your time, you essentially save even more.

This won’t work for everyone, of course. In some industries it’s just not possible. But if you can convince your boss that you’ll be just as productive from home, do it. Have your reasons, present your case, and see what the bossman says.

Final Thoughts

These are 14 different ways you can lower your transportation budget. Many of them won’t work for you, but give a couple of them a try. You may be surprised by how much you can actually save.

Americans spend a lot on transportation. If you can minimize transportation and housing costs, chances are you’ll be in pretty good shape.

What’s your experience with transportation? Have you tried any of these methods?

Related Articles