There is a strategy that can save you 4 percent, 5 percent, 10 percent or even 14 percent of your gas purchases. If you are a smart consumer you can save a lot of money.
This method utilizes credit cards that offer rebates on fuel or other gas station purchases. The correct card can substantially lower your cost of gas. You save without having to do any maintenance on your car. This savings method costs nothing at all.
Gas companies still need to compete for your business. They don't compete on price so they have to use other methods. One method used from time to time is credit cards with rebates. The average card will rebate you 10% on your purchases at their stations. Included in those purchases are your purchases for gas. The 10% rebate is usually the first two or three months that you have the card and after that the rebate changes to 5% on your gas purchases thereafter.
For example currently BP has a credit card that will pay 10% for the first 60 days for BP gas purchases and 5% for BP gas purchases after 60 days. These cards generally offer 1% rebates on other purchases and can be used anywhere Visa or MasterCard is accepted.
The credit card explained above is specifically for BP branded stations. You can not have a rebate at other stations. Instead of a gas company card a general market card might be a good choice if you need to use many different branded stations.
Generally most credit card companies have gas rebate plans. One such company is Discover Card. They currently issue a Discover Gas Card. This credit card will provide a rebate of 5 per cent of your gasoline purchases. The Discover card generally gives you a 1 per cent rebate on other items you purchase.
More examples: Chase has a gas Card that will give you a rebate of 6% for gas purchases for the first 60 days and then gives you a 3% rebate. Citicard has a similar program.
Both types of cards, the ones that provide savings only at specific company stores and the general market cards have advantages and disadvantages. The advantage to using a general market card is that you can use the general market card to buy fuel at any station and get the rebate. The card issued by the gas company only pays you the rebate at the gas company's branded gas stations.
The general market credit card only pays 6% even at it's highest rebate, but the gas company issued card provides 10 percent rebate for the initial period. In this instance the advantage on the size of the rebate is with the gas company card.
That above strategy will get you a discount of 3 percent up to 10 percent. 3% is good and 10% is even better, but what about getting the savings up to 14%? There is a trick you can utilize to do that.
Pre paid gas cards or gasoline gift cards are sold at most gas stations. Usually these prepaid cards are discounted. You may have to wait for certain promotions but in general you can find one that is discounted. For example by spending $48 on a $50 gift card, you can use the card for $50 worth of gas but it only cost you $48.00.
The net result for paying a lower price for more gas can be restated as a discount on the gas. Paying $48.00 for a $50.00 gift or prepaid card is equal to a 4% discount.
If you purchase the gift or prepaid card with the gas company card during the initial period you are getting a 10% rebate on that purchase.
If you purchase a prepaid card that provides a 4% discount, the $48 dollar card for $50 dollars worth of gas, you are adding to your savings.
You are getting a 10% rebate on the prepaid card purchase using the rebate credit card and you are getting a 4% savings by purchasing the prepaid gift card. Therefore the total you are getting is 14%. The 10% savings + the 4% savings or 4+10=14. Now you have just saved yourself 14% on your gas purchase.