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Average Cost for Car Repairs: How Much Should You Budget for Car Maintenance?


With an average of $800 a year in car maintenance costs alone – plus the always looming threat of unexpected vehicle repair costs – how can you ensure you have enough money to cover the bill?

Add a maintenance line item to your budget

Cars require routine maintenance to keep them going, but the expenses only hit our wallets two or three times a year. So how do you account for them in a monthly budget?

Think about how much you’ll likely spend on maintenance every year – either by looking at last year’s expenses or using AAA’s $800 annual estimate. Then divide that number by 12.

Each month, set that amount aside in a savings account (it’s $66 if you’re using AAA’s estimate), and then pull the money out when you need it.

Start an emergency fund

You can easily account for routine maintenance in your monthly budget, but what about those unexpected expenses?

The best way to budget for car repair costs is to start an emergency fund in a high-yield savings account.

Most experts recommend saving six months of expenses in your emergency fund. That means you could cover all your costs for half a year without earning any money.

Saving that much money takes time, especially if you live paycheck to paycheck. Keep going even if you can’t reach that goal right away. Every bit of savings helps.

If you can set aside $50 to $100 a month, you’ll be in good shape if your car breaks down – but you’ll also have cash for other emergencies, like unplanned vet visits or a broken appliance.

Cut back on other expenses

Building your emergency fund can be challenging when you’re on a tight budget. If you aren’t expecting a raise or additional income soon, you’ll have to reduce other expenses to make room in your budget.

Here are some things you might be able to cut:

  • Streaming services: Instead of paying for Netflix, Hulu, Disney+, and other streaming services, just choose one – and rotate between them every few months for a wider selection.
  • Utility bills: Reducing your water and energy consumption can save a lot on your utility bills each month. Here are nine easy ways to lower your electric bill.
  • Dining out: Brewing coffee, cooking dinner, and even having a beer at home is cheaper than grabbing Starbucks, fast food, and a drink at the bar. While you don’t want to completely deprive yourself of fun, reducing the frequency of “treat yourself” moments can leave extra cash in your budget for unanticipated car repairs.

Shop around for car insurance

Car insurance is another expensive part of owning a car, and you might be paying more than you need. Shop around with other providers at least once a year to see how much you can save, and always ask about discounts.

You can lower your current monthly premium by choosing a higher deductible. While you’ll have to spend more out of pocket if you crash your car, the monthly savings on your insurance premium could be worth it.

Get a car with a warranty

Buying a new car comes with a limited warranty covering the cost of malfunctioning parts and systems for a set number of years or miles.

The problem? Not everyone can afford to buy a new car. But you can still buy a used car that has a warranty. They often only come with brief warranties, but you can typically get a traditional warranty if you buy a certified pre-owned (CPO) vehicle. Learn more about CPO programs and other used car secrets in our guide to buying a used car on a budget.

Another way to get a warranty? Lease instead of buy. When you lease a car, you drive it for a set number of months or years, and the vehicle is under warranty for the entire duration. Your lease may also cover routine maintenance.

Consider credit options

If your car breaks down and you don’t have the money to fix it, you may have to turn to credit cards or personal loans.

We don’t recommend taking on debt if you don’t have to, but if your car is your only means of getting to and from work, paying for a new car battery or brake pads on a credit card might be necessary.

If the issue is just cosmetic, like a scratch or ding, skip the credit card and wait until you have enough saved to fix it. But if the repair’s crucial to the safe operation of your vehicle, it might be worth swiping your card.

Learn basic repair skills

Taking your car to a certified mechanic is the right call when it has engine trouble. But you might be able to handle the work for simple things like oil changes and wiper blade replacements.

Try learning basic car repair skills online or from a friend who’s savvy under the hood. These essential skills can save you a lot of money over the years.

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