Owning a car gives you freedom, but a check engine light can leave you scrambling for how to pay for unexpected repairs. No car can run forever without proper maintenance, and systems can fail at the worst possible time. If you’re not prepared, even a minor repair can throw your budget off balance.
With a solid plan and a little proactive saving, you can take control of car costs and avoid financial stress when the unexpected happens. Let’s walk through ways to plan for car maintenance, what kind of costs to expect, and how to build a buffer that keeps you in the driver’s seat.
Know how to pay for unexpected car repairs
Cars are complicated machines with multiple moving parts. Even if you’re driving a newer vehicle, wear and tear is inevitable. Oil changes, tire rotations, and brake replacements are just a few of the regular maintenance tasks that keep your car safe and running smoothly. If you skip them, your vehicle may be more likely to need bigger—and more expensive—repairs down the line.
Then there are the true surprises: alternator failures, electrical issues, or transmission problems that seem to appear out of nowhere. Without a plan in place, you might end up leaning on high-interest credit cards or scrambling to figure out how to pay for unexpected car repairs.
The bottom line? Building a budget for both expected and unexpected car expenses gives you more financial confidence and fewer headaches.
How much should you budget for car maintenance?
Maintenance costs can vary based on your car’s age, mileage, make and model, and how often you drive. But on average, you can expect to spend about $900 per year on regular maintenance and minor repairs.
Here’s a quick breakdown of some typical maintenance costs:
- Oil changes (2–3 times per year): $150–$240
- Tire rotation and balancing: $120
- Brake pad replacement: $250–$500
- Windshield wiper replacement: $50–$70
- Battery check or replacement: $100–$200
Pro tip: Buying a few simple tools and learning how to do some of these maintenance tasks yourself could save you some money in the long run.
How to pay for big, unexpected car repairs
While regular upkeep helps prevent most issues, some repairs are harder to predict and can carry a hefty price tag:
- Alternator replacement: $450–$2,500
- Starter motor replacement: $400–$1,000
- Transmission repair or replacement: $3,000–$9,000+
- Engine rebuild or replacement: $5,000–$10,000+
If your car is over 5 years old, it’s a good idea to build an emergency cushion for these “what-if” repairs. Saving an extra $50 to $100 per month—on top of your regular maintenance budget—can help soften the blow if something major goes wrong.
Set up a dedicated car care fund
Instead of lumping all your savings into a single account, consider opening a separate savings account just for vehicle expenses. Here’s how to get started:
- Estimate your annual car costs: Add up regular maintenance and set aside a buffer for unexpected repairs. If you estimate you’ll need $1,200 a year, that’s $100 a month.
- Make it automatic: Set up recurring transfers from your checking account into your car care savings account. Treat it like a monthly bill—except this one goes to your future self.
- Use the funds only for car-related expenses: That way, when your mechanic calls with a quote, you won’t have to worry about pulling money from rent or groceries.
- A personal loan may help in a pinch: If you don’t have enough saved, a personal loan could be an option to help cover the cost without using a high-interest credit card. Be sure to only use the funds to cover the repairs and make on-time payments to avoid taking a hit to your credit.
This approach gives you flexibility when surprises hit, and it helps you feel more in control of your money.
Smart ways to save on maintenance and repair costs
Even if you’re budgeting consistently, a few smart habits can make your money stretch further:
- Stick to the maintenance schedule: Skipping routine care can lead to bigger problems. Regular oil changes, filter replacements, and inspections help catch issues early.
- Learn some basic DIY tasks: Swapping out air filters, changing windshield wipers, or topping off fluids are simple jobs you can do at home.
- Get multiple quotes for big repairs: Prices can vary between shops. Don’t be afraid to shop around or ask for a breakdown of parts vs. labor costs.
- Use a trusted mechanic: A good mechanic will explain repairs in plain language and won’t pressure you into unnecessary work. Look for certified shops or ask for recommendations.
- Consider a vehicle service contract: If your manufacturer’s warranty has expired, a third-party protection plan could help cover certain repairs. Just make sure you understand the fine print.
Use budgeting tools to stay on track
Managing car expenses alongside everything else in your financial life can feel overwhelming. Whether you’re building an emergency fund or curbing your spending, financial tools like the free Money Manager at Best Egg Financial Health can automatically build a budget, track where your money is going, and help you feel more in control.
Expect the unexpected with a smart budget
Life with a car isn’t always predictable—but your budget can be. Planning for routine maintenance, setting aside savings for the unexpected, and using the right tools helps you keep your car running and your finances stable.
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.
