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A record of 43.2 million people is plan to travel by car on this 4th of July holiday, according to AAAmember organizations for advocacy and recreational tourism.
The good news for those drivers is that gas prices across the country are lower than last year.
The national average for a gallon of gasoline was $3.54 on July 3, down from $4.81 a year ago, according to AAA.
Last year’s high prices prompted politicians at the state and federal level to call for a gas tax cut.
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According to AAA, while gas prices are still high compared to historical averages, drivers have no plans to cut back on road travel.
That’s because this summer is proving to be a particularly popular travel time. Busier seasons are not without complications, including mass flight disruptions leading up to the 4th of July holiday.
A recent Bankrate survey showed that 63% of adults plan to go on a summer vacation this year, up from 61% last year.
“People want to go somewhere, they want to do something,” said Ted Rossman, senior industry analyst at Bankrate and CreditCards.com. “There’s still a lot of pent-up demand supported during the pandemic.”
Rossman notes that demand has helped push items like airline fares and hotels higher this year.
Bankrate survey found 80% of travelers are planning to adjust their plans due to higher prices.
According to Rossman, choosing to drive instead of flying is one of the more common changes, alongside choosing a cheaper accommodation or destination and traveling in fewer days.
Travelers who are hitting the road by car or other vehicle may also be looking for ways to cut gas costs.
1. Actively find lower prices
Those hitting the road this weekend may want to fill up if they’re passing through the least expensive markets, according to recent AAA ratings of Top 10 least expensive markets.
That includes Mississippi, for about $2.97 a gallon; Louisiana, $3.08; Alabama, $3.10; Tennessee, $3.10; Arkansas, $3.11; South Carolina, $3.17; Texas, $3.18; Oklahoma, $3.22; Georgia, $3.23; and North Carolina, $3.25.
According to Rossman, drivers everywhere can save by using apps that help them find better gas prices, such as Upside or GasBuddy.
2. Find a good gas reward credit card
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According to Rossman, some credit cards can refund you up to 5% on gas. That includes brands like Chase Freedom Flex and Discover it Cash Back, he said, which are offering that price from July to September.
Sam’s Club also offers certain cards that allow consumers to earn money back on gas purchases.
It’s also worth checking out the perks your existing credit card can offer, says Rossman.
“You can have a good gas rewards credit card and not even realize it,” says Rossman.
Notably, it’s generally best to avoid gas-branded cards, which can come with a high 30% annual interest rate and limited discounts on gas purchases, he said.
3. Try cumulative discounts
Drivers should also seek to arrange incentives where possible. For example, a credit card might give you 5% back on gas, and a gas station app might offer a 10% discount per gallon, says Rossman.
“It’s two ways to save instead of one,” he says.
4. Double check your car rental scope
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Rossman said rental cars are also relatively cheaper this year.
If you’re thinking of renting a car, be sure to double check that your credit card offers insurance.
“A lot of times, credit cards come with various travel perks that people may not even realize they have,” says Rossman.
