There is no need to beat around the bush when it comes to our automobiles—we know that they require maintenance, and majority of the time those repairs comes like a thief in the night.
Unlike our phone, or cable bills, these car repair bills can greatly throw our current budgeting plans down the drain regardless of owning a car insurance or not. Some repairs are regular and expected like an oil change, others can be costly and unexpected. How can you be prepared?
Paying for Auto Repairs
Let’s keep it real, absolutely nobody wants to pay for auto repairs, but somewhere down the road we are all going to have to eventually. The expenses of car repairs are even more drastic when you lack the cash or possess a maxed-out credit card. Sure, you can simply take your vehicle to your local auto repair shop, where they will be generous enough to allow you to gradually pay off your bill overtime. However, it is only a matter of time before late fees start to add up, and before you realize it, they refuse to release your vehicle unless all payment is submitted in full.
According to a recent survey, a general auto repair ranks 85.6%, Transmissions and repairs reach 6.7%, and all other repairs is 5.7%. A repair shop’s income regarding those maintenance percentage estimates approximately 26% producing a total of $1 million plus, $350,000-$749,999 equals 20%. 10% make $250,000-$349,999 while any amount $249,999 and below average out to 34%.
From those automobile maintenance, the top services are, from highest to lowest, crashed parts-31%, paint-21%, mechanical parts-8%, repair materials-15%, and anything other than those are approximately 4%. A high percentage of these listed repairs are necessarily required from vehicles possibly ten years and older.
Benefits Of A Car Maintenance Fund
The most beneficial aspects of developing a car maintenance fund are;
- Better fuel economy, and
- An extended lifespan for your vehicle.
Safety- The overall condition of your car greatly influences as well as enhance the safety of yours, and others on the road also. An impaired automobile increases the safety risk of not only you and your passengers, but other drivers too.
Fuel Economy-An improper/poor oil change schedule leads you to have a vehicle that is incapable of running. Also, a regular oil change can keep more money in your pocket and not at AutoZone. Consider the reality that gas prices continue to skyrocket—having an efficient fuel can lessen the amount you wind up spending at a gas station.
Longer Lifespan- Having a vehicle repair fund grants your vehicle to better serve your needs and last longer.
How To Start An Auto Maintenance Fund
To start on the right track with budgeting, first you will need to gather all your previous year auto maintenance records. This includes anything from repairs, to tire pressure, and oil change.
Next you should calculate the cost of the overall amount you spent within the previous year and divide the sum by 12 (total number of months in a year) and budget the quotient monthly for your car maintenance.
Finally, examine your car’s current vehicle and try to keep it in the best health. Following these simple guidelines will prevent you from becoming a regular in an auto repair shop as well as keep more of your income where it belongs—on your phone, and cable bills.
Having money in an account to pay for any unexpected repairs will give you peace of mind and hopefully keep a smile on your face.