We’re all familiar with the roles of high school teachers: they instruct their students in subjects like algebra, history, earth science, and health. However, one topic classrooms often miss is the value of financial planning. Ironically, budgeting is something many people work to achieve as adults.

As we age, we take on several responsibilities revolving around spending and earning money. For example, we pay for utilities, medical care, groceries, car insurance, etc. But sometimes emergencies happen, and we have to take on additional expenses, even if we don’t have the money to pay for them.

Are there steps to make affording things like unexpected car repairs possible? Consider the following tips to help save money for your next car emergency.

Building an Emergency Fund for Car Repairs

One of the simplest ways to ensure funds are available for an unplanned breakdown is to budget for them. Setting up an automated savings account for costly repairs is a great place to start. Each month, you can designate a specific amount of money for your bank to transfer from your checking account into your emergency savings account. AAA and Experian recommend budgeting for $50 to $100 each month. Still, saving more may be ideal because of inflation and varying repair costs based on vehicle make and model.

How can you generate income to meet your financial goals? Getting a side job could be a beneficial first step. Then, you can shuffle the income directly into your bank account’s emergency fund. Another option is adding your tax refunds or work bonuses to your car repair fund. When an emergency arises, you won’t have to stress about finances. Instead, you’ll have peace of mind knowing you have money saved to help pay the bills.

Prioritizing Essential Repairs Over Cosmetic Fixes

Finding a ding on your back bumper or a scratch on the side door of your car can be frustrating. Most of the time, you don’t know the cause. Did a grocery cart hit it? Were you a victim of a hit-and-run? While these minor surface issues are annoying eyesores, fixing them is not urgent.

Urgent repairs include flat tires, dead batteries, broken timing belts, alternators, or starters. Your car can’t operate safely or effectively when these parts break down. Setting aside funds for these types of emergency repairs is critical to ensuring you can cover the cost of the bill. But how much should you prepare to save? Let’s look at a few average repair cost estimates:

• Car Battery Replacement: $378–$388
• Timing Belt Replacement: $597–$804
• Alternator Replacement: $665–$882
• Starter Replacement: $456–$630

As you can see, some part replacements are costlier than others. Because of this, being proactive and building a heftier emergency fund may be a wise decision. The bigger the cushion you have, the lower your financial burden will be.

Exploring Financing and Payment Plans for Repairs

Sometimes, extra savings aren’t enough to cover an expensive repair. When this is the case, several other options may be worth exploring to help manage larger bills responsibly. These include:

• Opting for a repair shop financing plan: Does your certified auto repair shop offer monthly payment options or other financial services? Inquiring about your options instead of paying the entire balance may be worthwhile, especially if you have good credit.
• Using a credit card: Most businesses accept major credit cards as a payment option. Therefore, you should be able to charge the remaining balance and make a monthly payment to your credit card provider if necessary. However, be aware of your card’s interest rate. The last thing you want is to go into debt because your credit card payment is more than you can afford.
• Applying for a personal loan: Exploring lenders and applying for a personal loan may be a last resort option for a significant purchase, like a costly car repair bill. If approved, you might see a deposit of funds into your bank account the next business day. But before you pick a provider, compare interest rates and fees first. While these lenders let you repay the money over time, they may tack on additional fees or have higher interest rates.

Saving Money with Preventative Maintenance

The “snowball effect” isn’t just a clever saying. It’s a legitimate reality, especially concerning regular car maintenance. By keeping up with routine maintenance, you help prevent major issues from occurring in the future. When you don’t, one problem can quickly snowball into several, leaving you without a car and a costly headache. For instance, did you know that low oil or coolant levels can lead to engine problems?

Maximize your car’s performance and longevity by following your car’s maintenance schedule and performing regular oil changes, air filter replacements, tire pressure checks, brake inspections, and tire rotations. Also, don’t ignore strange noises or illuminated warning lights. Contact your mechanic as soon as you notice something is off. You can optimize your car’s performance and resale value by staying on top of regular maintenance.

Choosing a Trusted Mechanic

Auto repair shops may flood the market, but that doesn’t mean they’re all created equal. Don’t entrust your car to just anyone. Do your research. Look over business reviews, compare prices, and select one that checks all your boxes. For example, a reliable ASE-certified mechanic should be upfront with you about costs and provide solid estimates before working on your car. This way, you can prioritize major repairs and budget accordingly.

How Endurance Auto Protection Plans Can Help Manage Repair Costs

Investing in a reliable extended car warranty or vehicle service contract is well worth your peace of mind and financial security. When you have a plan that covers major mechanical repairs, including parts and labor, you can gain confidence on the road and worry less about unexpected expenses.

At Endurance Warranty, we have auto protection plans designed for every vehicle and budget. We can also personalize coverage depending on your vehicle and financial needs. Which components do our extended warranty plans cover?

With a Supreme plan investment, for example, we cover several components like air conditioning, brakes, electrical, suspension, the fuel system, steering, gaskets, and more. We also include extra perks like roadside assistance and rental car reimbursements. Exploring your options and speaking to an Endurance plan advisor can help you decide which plan would be best for you.

Why Different Factors Contribute to Extended Warranty Costs

How much a vehicle service contract will cost is a common customer concern. Generally, a plan that offers near bumper-to-bumper coverage averages around $1,000 per year. However, every vehicle and contract is unique. One driver’s car and coverage needs may be different from someone else’s. That said, there are several factors we always consider when determining cost. These include:

1. Your vehicle’s age and mileage
2. Your driving habits
3. Your finances or budget

Finding a Plan That Works for You

To help accommodate every car owner’s budget, we offer specialized payment plans to make paying for expensive repairs more affordable. Discover which plan is best for you by contacting an Endurance plan advisor at (800) 253-8203 or requesting a FREE quote online. Not ready to take that next step just yet? Shop our eStore to see your plan recommendations and pricing.

Visit the Endurance blog for more automotive-related articles, including tips for DIY repairs, extended warranty comparisons, and car reviews.