4 Ways You Can Budget for Car Payments and Repairs

Because your car is a needed method of transportation used in your daily life, it is important to keep it in good shape. Neglecting car maintenance and repair, as well as driving an older vehicle, can even turn into a safety hazard that could put your life on the line. Avoid this by using these methods to budget for car payments and repairs.

Start Early

If you own a car, you should always be putting something away regularly to pay for repairs.

The earlier you start, the better you will be prepared to cover any major repairs that may become needed.

The same is true for saving to replace your current vehicle.

The longer you have to save, the more money you will have to put towards a down payment on a new car.

The more you can pay for a new car in cash, the less you will pay in interest and depreciating value.

Know the Type and Age of Your Car

As your car gets older, the more likely a replacement will be needed, so you can begin expecting this based on how old your car is.

Repairs can be needed suddenly but they can be predictable, such as by knowing how old your tires are and how long you can safely go before replacing them.

The brand of your car, if it is imported or known for reliability, might affect your budgeting as well.

There are brand-specific repair businesses, such as Hillside Imports.

Put Aside a Set Amount

Putting aside around $100-$200 per month is usually enough.

As a general rule, your repair budget should increase as your car’s age does, and newer cars are less likely to need repairs.

You can look up what the car payment for a new car would likely be and start putting that much away every month to go towards a down payment as well.

You should also look at past repair expenses to get an idea of how much future ones might cost you.

Shop Around

It never hurts to shop around for a better deal on car insurance, repair costs, car price and more.

Some dealers may offer better financing terms than others, especially during sales events.

The cost of repairs can vary significantly depending on the mechanic, with dealerships usually costing much more.

While you will still need to have budgeted for repairs or replacement, scoring a good deal could alleviate some financial strain.

Car expenses, including payments, insurance, and repairs, are all major line items in a budget for car payments and repairs.

Be smart and keep some money aside for work on your car.

When the cost to maintain the car becomes too much compared to what it is worth or the car becomes unsafe, it’s time to seriously consider replacing it.

Tags: budget for car payments and repairs

Category: Car Purchase