Average Cost of Car Maintenance

Cars are a part of daily life, from commuting to running errands. But the costs of owning and maintaining a car often sneak up on us. According to AAA, 64 million American drivers - one in three - couldn’t afford an unexpected car repair without going into debt. So, how do we budget for maintenance and repairs when these aren’t part of our monthly routine?

The Real Cost of Car Care

On average, car owners spend 9.68 cents per mile on maintenance and repairs, which is $1,452 per year for a 15,000-mile year. However, 64 million American drivers couldn’t cover those costs without going into debt, according to AAA. AAA recommends saving at least $50 per month, Experian suggests $100 to account for varying costs based on vehicle and location. If your driving habits are different from average, adjust your budget for inflation.

Maintenance is important not only to keep your car running but to keep its value. Skipping maintenance can lead to long-term problems, staying on top of it will benefit you if you decide to trade in or refinance your vehicle.

Scheduled Car Maintenance Costs

The best way to minimize repair costs is to stay on top of maintenance. Regular maintenance will keep your car running smoothly and you and your passengers safe. Maintenance costs will vary based on the type, age, and location of your vehicle, but there are basic services every car needs. You should visit the mechanic every 5,000 miles, but always check your owner’s manual for specific maintenance intervals.

Replacing Vehicle Parts

At some point, you’ll need to replace parts on your vehicle, whether it’s from wear and tear or more serious issues. The older your car gets, the more frequent and costly these replacements will be. This is a big factor when deciding between a new or used car. The cost of replacement parts will vary depending on the part, and mechanics may not always have the part in stock so they will have to wait for delivery. Two big factors that affect replacement costs are the type of vehicle - luxury cars have higher part costs - and the market demand at the time. If you’re handy with cars, you can save money by replacing simpler parts like air filters or wipers yourself.

Factors Affecting Car Maintenance Costs

Car maintenance costs can vary greatly depending on make, model, and year. For example, a $25,000 Toyota Corolla will have much lower maintenance costs than a $190,000 Mercedes-Benz S63 AMG which has a handmade engine and high-end parts. Other factors that affect maintenance costs are driving habits - aggressive driving will lead to more repairs - climate - extreme weather will affect parts like tires and battery - mileage - higher miles will wear and tear more - and usage - city driving will require more maintenance than highway driving.

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Unexpected Car Repairs

Unlike predictable maintenance, repairs can happen unexpectedly and be costly. Parts like oil, brake pads, and tires have a lifespan, but other issues like an oxygen sensor failing can happen at any time. Some engines can last hundreds of thousands of miles with proper care, while others will need major repairs much sooner.

Surprise repairs will put a strain on your finances. According to a Bankrate report, over 50% of U.S. adults can’t cover an emergency expense of $1,000 or more. You need to budget for these costs and build an emergency fund so you don’t go crazy when surprise repairs happen.

When a repair is needed, it’s good to compare prices at different shops and check with your insurance to see what’s covered. Accidents are partly covered by insurance but wear and tear repairs are not. Having savings set aside for these situations will help you manage the financial hit.

Maintenance and Repair Costs by Brand

Your car’s brand plays a big role in maintenance and repair costs. Luxury cars come with higher ongoing costs, including higher dealer service charges. While these services give you specialized care, they can be expensive.

If you want to save in the long run, domestic brands may be the way to go. For example, owning a luxury car like a Mercedes-Benz over time will be much more expensive than a domestic car like a Lincoln. Consumer Reports shows that maintenance costs for luxury brands are often higher than domestic brands by a big margin.

When choosing a car, you need to consider the long-term maintenance costs based on the brand. Some cars may have higher sticker prices, but come with a bigger price tag for maintenance and repairs as well.

How to Budget for Car Repair Costs

• Don’t ignore dashboard indicators. As soon as a warning light appears, address it right away. Delaying repairs will cost you more later. Ignoring dashboard indicators will cost you more and a dangerous driving experience.

• Buy the right car. A reliable, low-maintenance car will save you a lot in the long run. Avoid luxury cars with high maintenance costs unless you can afford the repair bills. Research common problems in the model you’re considering before buying to avoid surprises.

• Follow the maintenance schedule. Every car has a recommended maintenance schedule that should be followed for optimal performance. This will prevent costly repairs and keep your car in good condition for a longer time. Maintenance also gives you peace of mind and reduces breakdowns.

• Get a pre-purchase inspection. When buying a used car, always get a pre-purchase inspection (PPI). This will help identify existing issues, and you won’t be stuck with a car that needs expensive repairs. The cost of the inspection is around $200, a small price to pay to avoid buying a lemon.

• DIY when you can. For simple tasks like changing wiper blades or replacing air filters, do it yourself. There are plenty of online resources and tutorials to guide you. But don’t attempt to fix complex repairs beyond your skill level, as it may cause more damage.

• Add a maintenance line item to your budget. Car maintenance may not happen every month, but it’s important to budget for it. Estimate your yearly maintenance cost (around $900, according to AAA) and divide it by 12. Set this aside monthly in a savings account to use when you need it.

• Start an emergency fund. Having an emergency fund for unexpected repairs will prevent financial stress. Save a portion of your income each month in a high-yield savings account. Ideally, aim to save at least 6 months worth of expenses so you’re prepared for car repairs and other emergencies.

• Cut expenses and save money. Building your emergency fund may require you to cut back on other expenses. Try reducing non-essential spending like streaming services, dining out, or utility bills. Every little bit you save will add to your car repair fund.

• Shop around for car insurance. Car insurance is a big ongoing expense. Compare prices from different providers every year and ask for discounts. A higher deductible will reduce your premium, but you’ll need to pay more out of pocket in case of an accident.

Conclusion