How Much to Save for Car Maintenance

What should I Put Aside Every Month?

An unexpected car repair can be expensive. Usually, most people just drive along hoping for the best, and then one day a problem occurs and they have a big expense and no working vehicle. That is especially troublesome when the vehicle is crucial to your business.

AAA found that one-in-three U.S. drivers cannot pay for an unexpected car repair bill. If you plan ahead and save a little money in a car repair rainy day fund of sorts, you will have the cash you need when your car decides it's ready for a major part replacement.

Not sure how much to save for car maintenance? Experts recommend putting aside at least $100 per month for car maintenance per vehicle. Maybe even a little more (or a little less!) based on the age and condition of your car. Here are some other answers to questions you may have about car maintenance:

What is the average cost of car maintenance?

Regular car maintenance is good for your engine, keeps everything running smoothly, and helps avoid serious problems. Basic services are relatively inexpensive, as most services start at less than $100 per year, and they can save you from expensive repairs down the road.

What is a typical price for an oil change?

The average cost of an oil change is anywhere from $20 to $70. However, many factors determine your price, including the type of motor oil you use, the size of your car's engine, and the place where you have the service done.

How long do new tires last?

It depends! A normal set of tires should last for 60,000 to 75,000 miles or about four to five years. But different factors can affect the life of your tires, such as your driving behavior. It’s important to have good tread on your tires so you have the proper traction to stop in an emergency. Plus, if the road is slick, a balding tire can cause you to hydroplane and get into an accident.

Good tire tread also helps your vehicle accelerate smoothly and brake more quickly. Plus, tires in great shape can give you better fuel economy. This means fewer trips to the pump, saving you money.

A good trick for testing your tire tread is asking Honest Abe. Place a penny headfirst into several tread grooves across the tire in question. If you always see the top of Lincoln's head, your treads are worn out and shallow and should be replaced. However, if part of Lincoln's head is always covered by the tread, you have more than 2/32 of an inch of tread depth remaining. This is the minimum legal limit to pass a state safety inspection.

If the penny test shows your tires are low, it’s okay; you budgeted for this. Low tread tires are more susceptible to punctures, which can cause a sudden blowout. You don’t want to be stranded on the highway, or worse yet, cause an accident. Worn tires are also more likely to lose air pressure, which is another cause for blowouts.

Keeping track of your tire tread is especially essential if you have a business with a fleet of vehicles. When one vehicle is down, it can cause chaos for the whole company to scramble to find a backup vehicle. If you need new tires on your fleet of vehicles, have them serviced immediately.

Why should I set up a budget for car maintenance?

If you don’t have a car maintenance budget, it’s easy to neglect your vehicle’s basic needs. You often don’t even think about what is going on with your vehicle unless there is a problem, but there are so many other small things that should be addressed along the way to avoid more serious issues.

Many car maintenance items are tracked based on mileage, not certain amounts of time. Here are common maintenance items and how often they should be done:

• Battery – 3–5 years

• Brakes – 30,000–70,000 miles

• Cabin & Engine Air Filter – 15,000–30,000 miles

• Hoses & Belts – Varies

• Multi-Point Inspection – Every Visit

• Oil Change – 3,000–5,000 miles

• Tires – 50,000–75,000 miles

• Tire Rotation – 5,000–7,000 miles

• Wiper Blades – 6–12 months

Though these are good guidelines, it’s always recommended to follow your vehicle’s suggested maintenance schedule found in your owner’s manual. This will give you more in-depth information, including when to replace items like spark plugs, timing belts, transmission fluid, etc.

What’s the best way to approach budgeting?

As we said before, putting aside $100 a month is a great way to start. However, you could try another approach to budgeting. Add up how much you’ve spent on maintenance and repairs the year before and try to save around the same amount.

However, this is not a foolproof plan, as some years have high ticket items break down, and one expensive repair year does not indicate the next. If you recently had major work done, you might be ok putting aside less. But do consider what you’re driving. Is it older than a decade or two? Or just shy of being deemed a “classic?” You might want to start putting more dollar bills in the piggy bank.

But, once you do start saving, don’t touch it! You can’t use your car expense money for a weekend getaway, a new pair of shoes, or guitar lessons. Or if you are saving for a fleet of vehicles that are needed for your business, that money should only be allocated to vehicle maintenance or repairs. This is your emergency car fund. If you start “borrowing” money from your car repair fund for other desires, when that repair does need to happen, your stash will be running on empty.

You might want to also consider setting up an automatic monthly transfer from your checking to your savings account. That way it’s being put aside but you don’t have to see it.

What other factors should I consider when budgeting?

The amount you need to save depends on a few factors:

• Age of your car: As we mentioned before, the older the vehicle, the more likely things are going to need to be replaced. Parts wear out over time.

• Condition of your vehicle: Has your car been well taken care of? Parked in a garage every night and pampered with weekly car washes and wax? Only driven in the best weather? Or did it have a rough life? Was it exposed to the elements, as well as a family full of kids, including a teenager who may or may not have checked the oil and for sure drove it fast to impress his friends and always slammed the door? Was the only time it got washed when the windows were left down during a thunderstorm?

• Make and model: If you own a luxury vehicle or an SUV, you’re going to end up spending more on maintenance.

• Driving behavior: Are you a speed racer on the road or do you drive like a 90-year-old grandma? How many miles do you put on your car each year? Are you just driving it back and forth to work or are you road-tripping across the country? Are you an aggressive driver? Do you slow down way ahead of time or brake at the last minute to avoid hitting the car in front of you? Your driving behavior influences the frequency of your car maintenance. Some behaviors (like abrupt braking) can cause parts to wear out more quickly. For fleet vehicles that are driven by multiple drivers, driving behaviors can change from day to day, resulting in further wear and tear.

How do I create a car maintenance budget?

Deciding that you want to start a car budget is the easy part. Figuring out how to put one together and then following through (and not “borrowing” from it for other stuff) is the hard part! Here are three simple steps to help you determine how much you need to budget:

#1 Gather maintenance records and receipts.

The best place to start is to see what you have spent in the past. An ideal budget begins by examining your car’s maintenance history. That way you can see what you recently had repaired to get an idea of what you might need to get done in the future. Keep in mind that the more mileage and years on your car, the more frequently it will need maintenance.

Try to find all the receipts for repairs, oil changes, tires, etc. Then add all of the maintenance costs together to get the total amount you spent last year. Take this number and divide it by 12 to get your average monthly car maintenance cost. Use this number to gauge how much money you should set aside every month.

For instance, if you spent $1,500 on maintenance for your Honda Accord last year, you should put aside around $125 each month for car maintenance.

#2 Assess your finances and repair needs.

Adjust the number you came up with in #1 to reflect your car’s current condition. Also, be realistic about your salary and what you can actually afford to budget. You don’t want to put more aside than you can afford and then you find yourself constantly dipping into the car fund for other essential items.

Also, think about what your car will need in the future. Is the tread getting dangerously low on your tires? Hear an unexplained clunking noise? Be sure to plan ahead.

#3 Keep up with preventative maintenance & plan for the unexpected.

After you’ve calculated your vehicle maintenance budget, it’s time to prepare for the unexpected. You want to have enough money saved so you’re not scrambling for funds while your car is being worked on. As tempting as it may be, don’t withdraw from your car maintenance savings. Keep a separate fund away from your other accounts.

What is the #1 reason for a car maintenance budget?

Peace of mind! It’s a wonderful feeling to be able to have the money on hand when a large repair bill comes in. How much to save for car maintenance varies by many factors, but putting away a reasonable amount that you can afford will definitely help you prepare for the unexpected. You’ll be glad you did, especially when that vehicle is a source of revenue for you or your business. Have your vehicle(s) serviced today!