Driving Costs Add Up

Gasoline prices have been dropping for nearly three weeks -- welcome news for those planning a last-minute getaway on the road before the fleeting days of summer have disappeared.

Still, it's important to note that gas prices have accelerated faster than prices for other products, adding $1.04 per gallon over the past year. That equates to a 37% rise, vs. 5% inflation for all goods.

Each gallon may now cost less than the record $4.114 per gallon reached in mid-July, according to AAA and the Oil Price Information Service, but $3.881 per gallon is no bargain. (Not on American soil, at least.)

Furthermore, while gas can take up the lion's share of driving costs these days, there are quite a few other factors to consider: Maintenance, insurance, finance charges, government fees and taxes, as well as depreciation. Many dealers are practically throwing themselves at potential customers' feet to move cars off the lot, which can offer good opportunities for those in need of new wheels.

One recent email entreaty from a Nissan dealership in New York promoted its "HUGE MIDNIGHT MADNESS SALE!!!" which included "live music, cash machine and great food" as well as the "most aggressive prices of the year."

Many are also offering longer-term financing deals -- in some cases as long as eight or nine years -- to provide a more enticing deal with lower monthly payments for those who can't afford traditional four-year plans. However, it's also important to note that those payments can increase the cost of the vehicle by many thousands of dollars. In addition, loans in general are more expensive and harder to acquire these days because lenders are reducing their exposure to risk.