Once your new car warranty expires, you can start to find a number of small repairs that can quickly turn into big projects if you don’t address these issues right away. Car maintenance can be expensive, but putting it off can lead to even more expensive repairs. Fortunately, by budgeting properly, you can pay for maintenance as needed, avoid costly repairs, and keep your car in tip-top condition for longer.
1. What you spend. How much did you spend on car costs last year? Take your maintenance and repair costs out of your total costs, separating car insurance, registration fees, fuel costs, and package taxes. This will be a good starting point for anticipating what you might spend next year. Yes, keep a calculator handy, as you can tabulate your figures accurately and easily.
2. Consider upcoming costs. If you’ve owned your car for a while, they may be due to some major maintenance issues. This may include replacing the timing belt, installing a new muffler, buying a new set of tires, or something else. That something else may be included in your owner’s manual, so pull out that book, too. Look at the manufacturers maintenance schedule and compare it to your odometer. Plan to handle the maintenance issues you’ve missed, as well as those to come in the next 12 months.
3. Divide and conquer. With last year’s numbers available and projected costs known, add them up. Divide that number by 12 to calculate your monthly average. For example, if you estimate that maintenance will cost you $1,800 next year, you’ll need to set aside $150 per month to cover your expenses.
4. Save your cash. You know how much is needed for the next 12 months and how much to set aside each month. You can break it down even further by dividing your yearly total by your number of paychecks and setting aside that amount for car maintenance. So if you get paid every other week, divide that $1,800 by 26 to come to almost $70 per pay period. Open a savings account and plan to fund it accordingly.
Looking to the future
You may also want to set aside extra money for a down payment on your next car. In fact, with careful planning, you may be able to pay cash for your new car, too. Don’t put off saving for car maintenance or work that needs to be done. A well-maintained car will last longer and keep you and everyone else safe, too.
