You need auto repair, whether you realize it or not. It’s sad to see people struggle financially. Research shows the average American doesn’t have $1,000 saved for emergency expenses. They are one home repair, car breakdown, or medical bill away from going broke. Whose fault is that? Don’t blame the economy. Income bracket is irrelevant. With a little bit of creativity, anyone can save money! I’ll prove it.
Drivers Don’t Want Auto Repair
You can’t get an oil change every 3,000-5,000 miles and assume your vehicle will stay in great shape. Car ownership is more complicated than that. According to AAA, it costs $8,558 per year to own and operate a vehicle. This includes fuel, tires, insurance, license/registration, repair and maintenance, etc.
Note: Auto repair and maintenance accounts for $792 of the total. Oil changes only cost $120 per year. So, where does the other $672 come from? The answer varies from driver to driver. Check out your owner’s manual for a hint. There’s a recommended maintenance schedule towards the end.
Yes – it costs money to follow those guidelines – but you’ll save money in the long-run, because taking good care of your vehicle will add years to its life. Would you rather spend $200 (or even $2,000) for a necessary repair… or risk having to spend $20,000 to buy a new car? It’s a no-brainer!
Drivers Don’t Want Auto Repair (They Need Auto Repair!)
Auto repair is different from most life expenses. It’s easy to plan for fixed costs like rent, power, water, Internet, and cellphones. There’s no mystery about when the bill is due or how much money it will cost. You pay the same amount at the same time every month (unless you use your cellphone on a cruise to the Cayman Islands, then you might receive a bill that shocks you later).
You can even automate fixed costs. It’s easy. Provide the company with your bank account / credit card number and you’ll never have to worry about writing a check again. Talk about convenient! Auto repair doesn’t work this way. $792 is the average annual cost of auto repair, but that doesn’t mean you’ll spend roughly $800 every year. Auto repair is a variable cost (that means it goes up and down).
One year, you might get lucky and not have to do anything except routine oil changes and tire rotations (cost: $100-300). The next year, you might get extremely unlucky and have to rebuild a transmission (cost: $2,800-3,800). Preventive measures like keeping a close eye on fluid levels can help you avoid the most expensive repairs, but I want you to understand how much the cost of auto repair can vary from year-to-year.
Drivers Don’t Want Auto Repair. They Need Auto Repair! Plan Accordingly…
Your car can’t take care of itself. That’s your responsibility. Don’t expect your parents, partner, or sugar mama/daddy to bail you out. Responsible drivers are ready to invest in the health and longevity of their vehicle, whenever they are required to do so. You never know when that moment will happen. Life is funny that way. Uncertainty is the Universe’s way of keeping you on your toes. Embrace it!
I’m not a financial adviser. Fixing cars is what I do best. Still, I’ve worked with enough cash-strapped drivers to pick up on a few tips that might help you save money. First, open a savings account. This probably sounds obvious, but 21% of Americans don’t have a savings account. Checking accounts are for spending. Savings accounts are for (you guessed it) saving. Boundaries are the best!
Be careful about where you open a savings account. Some banks charge a monthly maintenance fee. Credit unions are often a better option. Suze Orman recommends giving your savings account a name (I do the same thing for drivers at auto awareness workshops – people care about stuff with names!). Choose a name that makes you feel good every time you see it.
I’d like to borrow another tip from Suze: set up an automatic monthly transfer to your savings account. Today, you have the best intentions; but when payday rolls around, that can change within a heartbeat. “It’s been such a crazy, stressful week. I deserve to treat myself!” There’s nothing wrong with the occasional indulgence, but don’t get carried away with it.
How much money should you save per week? I don’t know. It depends on your income, cost of living, and other factors. Please aim high! When you think about it, how many expenses are really necessary? Cooking at home is cheaper than eating out. Walking or running outside is cheaper than a fitness club. Netflix is cheaper than cable. Have no mercy. Cut, cut, cut!
Drivers Don’t Want Auto Repair. They Need Auto Repair! Plan Accordingly… and You Will be Rewarded
You go to the auto shop for an oil change, expecting to spend $30. The service adviser calls your name. They have bad news. The auto mechanic found a busted CV boot. Now your bill will be over $300. How would you respond in this situation? Most people would freak out, because they don’t plan ahead. “Guess I’ll be late on (insert bill here) now…”
This is entirely too stressful. Let’s imagine a better world. A world where you feel safe and secure about your financial future. A world where you can shrug off unexpected auto repairs and other life expenses. No one likes to spend money when they didn’t plan on it… but it doesn’t have to ruin your day either.
Please prioritize your financial well-being! You will remove so much stress and anxiety from your life. Visit the blogs of Suze Orman and Dave Ramsey to learn more about financial planning. With time and patience, anyone can save money!
I love that you talked that following the right guidelines for your maintenance could help prevent costs in the future. Last night, my brother told me that he was hoping to find a reliable automotive service because he’s not able to use his car due to a transmission problem because of lack of maintenance, and he asked if I had any idea what would be the best option to do. Thanks to this informative article, I’ll be sure to tell him that consulting a well-known auto transmission repair service can help him with his problem.
Thanks for helping me understand that automotive repair will not be like other expenses, because we might not know how much we need when issues arise. In that case, I should have enough emergency funds so that I will be ready when I need such services. Also, I got a used vehicle, so I definitely be prepared to keep me from being short in my budget every month.