Car ownership isn’t cheap, especially since some car repairs can be expensive. For example, research indicates that rebuilding or replacing a transmission will cost an owner $1,000 to $4,000. Meanwhile, if a turbo component goes out, you’ll have to pay a local shop $1,000 to $6,000 or more to fix it. Clearly, if you don’t plan for the costs of auto repairs accordingly, you may find yourself in deep financial trouble.
That fate doesn’t have to be yours, though. Instead, you can use these tips to ensure you always have money for vehicle repairs.
Invest in a Car Warranty
If you have extra cash at some point and your car no longer has a manufacturer’s warranty, consider investing in an extended warranty. Once the policy goes into effect, you’ll pay whatever your deductible is, and the provider will cover the rest of the bill. That’s a way to make sure you always have the money for auto repairs on hand because it will be much easier to come up with $50 to $100 or so than thousands of dollars all at once. If you’re ready to get started with a reputable company, look into Endurance warranty reviews. These will show you what others are saying about the business and what it brings to the table.
You can lower costs even further by collecting multiple quotes from different warranty providers. Doing so allows you to compare the rates offered by warranty providers and choose the rate that best fits your budget.
Obtain a Credit Card
Many mechanics accept major credit cards like Visa, Mastercard, Discover, and American Express. Hence, consider getting one of them if you’re worried about not having the cash when automotive problems occur. Then, when things happen, the card company will cover the bill, and you’ll pay it back with interest. Just be careful and don’t be tempted to use the line of credit for other things. After all, the last thing you’ll need is for your car to break down and the card to be maxed out.
Find the Right Mechanic
Instead of waiting until the last minute to find a mechanic, why not start the process of finding one now? But don’t pick just any old shop. Rather, go with a repair shop that offers financing for auto repairs. That will allow you to get your vehicle’s issue resolved without breaking the bank.
Depending on your credit, you may have to pay a down payment, or you could get the work done for no money down. In addition, your credit will play a role in determining the amount of your monthly payments. Therefore, if you plan on financing auto repairs in the future, get your credit in shape by paying bills on time and lowering your credit utilization.
Create an Emergency Fund
Another solution to always have money for car repairs is to create an emergency fund. But, of course, that is often easier said than done. Putting away little bits of cash here or there will get you where you need to be in the blink of an eye. You may even wish to open a savings account to put the money into, preferably, one that will accumulate interest. Then, your money will grow and grow without you having to do anything else.
That likely won’t be enough to replenish the funds as they’re spent. So, you’ll need to put more money back after paying for repairs. Continue the cycle and you should always have the cash necessary to fix items when they break.
A Personal Loan
This alternative won’t let you always have the money for auto repairs in the bank. However, applying for and obtaining a personal loan when something goes wrong could be the perfect solution. This will also require you to keep your credit in good standing, as that will make it easier to qualify for an advance from a bank, credit union, or another lender.
You also have the option to borrow money from family members and friends. In such cases, just remember to repay the loan on time to avoid hurt feelings.
Take a DIY Approach to Auto Repairs
Taking a do-it-yourself repair approach is an excellent way to keep repair costs low ensure you have the money for projects. You’ll have to pay for parts, but in doing the work yourself, there won’t be a labor charge, as with a professional mechanic. You’ll be able to save a ton of money this way. Of course, you may have to buy or borrow some tools to complete jobs, but that is a minimal amount to spend in comparison to some auto repairs.
Unless you’re interested in jumping in headfirst, you’ll also need some knowledge. They sell books in auto parts stores that can help with this. Or if you’re all about being online, why not look at YouTube? Regardless of what auto repair project you have going on, there’s an excellent chance that someone has already created a video about that and posted it on their channel. You can also browse auto repair websites and forums to get advice from car maintenance veterans and experts.
Some Final Thoughts
Auto repair costs are no joke these days. Thus, vehicle owners need to take measures to protect themselves from them. Preventative maintenance can stop many breakdowns, but not all of them. Hence, eventually, everyone’s car is going to need a little tender loving care. These tips can ensure you always have the money for repairs.