How to Budget for Car Maintenance and Repairs
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There is nothing worse than driving along the highway, window down, enjoying the breeze when your car sputters to a stop in the middle of nowhere. Not only does it put a damper on your afternoon and delay your plans for the day, but for most people, a major breakdown on the side of the road means depleting their savings account to fix the issue.
For me, it was a catastrophic failure of my transmission on the way to the coast for a weekend away from the world. Instead of my toes in the sand, I spent the weekend in a small-town mechanic shop’s lobby. I spent most of the weekend on the phone scrambling to figure out how to get the cash to pay the mechanic for his services.
Investing in an extended warranty would have covered all the repairs I had to pay for. A typical extended warranty usually covers significant repairs on your car. Having supplemental insurance like a AAA membership could have helped with car repair costs and roadside assistance and towing services (not to mention provide me with discounts on everything from travel and hotels to memberships with partnering clubs).
But the main lesson I learned that fateful afternoon was to set up a savings account specifically for car maintenance and repair.
In this article
Why you need a car maintenance budget
Saving cash specifically for emergency repairs requires forward-thinking and planning ahead, but it would have saved me from the headache I experienced that summer. Whether you drive a new car or hold sentiment in an old car that still runs, keeping a maintenance fund stocked up will help you prevent financial strain when an unexpected and expensive repair crops up.
Beyond emergency maintenance and repairs, budgeting for routine maintenance tasks both saves car owers from surprise hefty bills with the added bonus of reducing the likelihood of major breakdowns.
Neglecting basic routine maintenance projects like oil changes, tune-ups, tire rotations, and brake replacements is a sure-fire way to cost yourself extra. Every car is different, but every car has a recommended maintenance schedule based on the average drivers' use of that model. (You can find the maintenance schedule in your owner's manual or search for your car’s make and model online.) These recommendations are made to help extend the life of your vehicle and its parts.
Your roadmap to saving!
- Get free auto quotes.
- Enjoy full coverage.
- Work with top brands.
How much to budget for car maintenance
Creating a budget to cover car maintenance costs can make it easier for you to save money for car needs that eventually arise. Instead of being stuck with a hefty bill for new tires at $150 apiece, creating a maintenance budget can prepare you for maintenance services and auto repairs. You can expect to pay a portion of your budget every month, every quarter, or every few years for things you use on your vehicle.
Keep a space in your budget for car insurance premiums; replacing tires, windshield wipers and fluids; fuel and oil changes; car washes and detailing; and anything else that follows your vehicle‘s recommended regular car maintenance guide. Don't forget to budget for renewing the tags and registration for your car within your state.
Pay attention to the maintenance costs for your past vehicles, and divide this amount by the number of pay periods you expect to see. Set aside this amount + 10% each pay cycle to have the funds for the vehicle maintenance and a decent amount to contribute toward repairs and other auto costs beyond your budget.
Whether you do the maintenance or pay a professional, keep maintenance records, so you‘ll know when something is due or in the event there is a warranty on a replacement part you paid for that didn‘t last, including windshield wipers and tires. The following is a sampling of most-common maintenance expenses.
Oil changes
Average costs: $40 – $100
Your automated oil change indicator will indicate when you’ve driven at least 3,500 to 10,000 miles from the last oil change. The newer your car, the smarter your system. If you tend to drive long distances on the highway or tow a trailer often, you may need an oil change earlier than someone who mainly drives less frequently.
When this light goes on, you’ll want to refresh your oil, change your oil filter, and while you’ve got the hood up, this is a good chance to check on your air filter and top up other fluids. Regardless of the indicator, your oil filter needs to be swapped out for a new one every 12 months for the highest efficiency.
Standard tune-up
Average cost: $200 – $300
This should be an annual task and many complete this when passing an annual emissions inspection. You’ll want to schedule a general tune-up with your service technician once a year or at the 7,500-mile mark. During this service, perform a tire inspection and rotation, inspect and replace the air and fuel filters as needed, flush and refill brake fluid, transmission fluid, radiator coolant, and top up the windshield washer fluid.
If you tend to drive a lot or in a dusty environment, you’ll want to do a tune-up every time you schedule your oil change. The cost may vary depending on the services performed and the parts used.
Advanced tune-up
Average cost: $300 – $700
At or near 30,000 miles, some systems start to break down. Your car will run forever if you’re proactive about the maintenance of these systems. This is a fairly standard time to replace your spark plugs, flush and refill all system fluids (transmission, brake, power steering, radiator coolant), and swap out air filters, fuel filters, and check all hoses and belts for wear. The variance in price depends entirely on what parts are replaced and how much time the tech works on the project.
System upgrades
Average cost: $750 – $900
While the timing chain or tensioner is typically a lifetime installation, it is a part that can wear out and need regular replacement after about 90,000 miles. You may never need to get this part repaired, but when you do, it can make or break the bank depending on if you catch it before it actually breaks or after it damages the car.
Your roadmap to saving!
- Get free auto quotes.
- Enjoy full coverage.
- Work with top brands.
Emergency repairs
Routine maintenance needs can prevent most of the emergency repairs mentioned in this discussion. However, even the best-laid plans can be disrupted by chance. Having a savings account set aside for these repairs and investing in an extended warranty can help mitigate the stress from these issues. Most newer cars are computerized, and most of the issues can be determined through a code reader. There will be an indicator light in most cases, but most issues will come up under the “Check Engine” light. Your local mechanic can plug in an OBD2 Diagnostic Reader to your system, identify the problem, and quote you for the repair. The two most costly issues that can arise from a Check Engine light are transmission or engine issues.
Transmission rebuild/replacement
Average cost: $4,300 – $6,700
Replacing a transmission is not something you’ll be able to put off once the system starts to fail. The price will vary depending on the damage, whether you replace or rebuild, and if the transmission is manual or automatic.
Engine rebuild/replacement
Average cost: $5,000 – $7,000
Rebuilding your damaged engine will generally cost about half the cost of replacing it with a new one. It will take more time and cost more in labor, but it is a viable option to keep your car running in top condition.
Ways to save on auto repairs
Saving can be daunting when you’re already living on a tight budget but there are additional ways you can avoid costly repairs, including:
Invest in an extended warranty. The cost may seem excessive at first, but when you consider that it covers most major mechanical issues for an additional period beyond the initial manufacturer's warranty, as well as covering more than the base option.
Shop around for insurance annually. The longer you go without a wreck or other insurance claim, the lower your premiums will be. You should re-check your rates with your insurance agent every year at renewal and shop around with other companies to ensure you’re getting the best price. Online comparison shopping sites like Gabi can do a search of prices within minutes and let you know if you could be paying less on your premiums. Shift the difference into your savings account each month.
Your roadmap to saving!
- Get free auto quotes.
- Enjoy full coverage.
- Work with top brands.
The bottom line
When you can invest a little into your car budget each month and keep up with your routine maintenance, your vehicle will treat you right and keep running for a very long time. Forward-thinking can help you avoid significant financial burdens and lost time due to unexpected repairs.
Putting the effort in now to prevent damage can save a ton of money in the long run. Creating a designated budget line item for your car ensures that it will be ready to take you to work or on that weekend road trip reliably.
Jake Gamble is a PR specialist with VF-1 Media, a car enthusiast club for rare, vintage and new cars.
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