💰 How much should I save for car maintenance each month?

I want to help you stop living paycheck to paycheck when it comes to your vehicle. As Andrew notes, 40% of US adults would be unable to cover a $400 expense as per a recent survey. Since the average repair costs between $200 and $500 and happens every few months, you need a dedicated car fund instead of relying on aftermarket warranties.

Your baseline monthly repair savings should equal the cost of one oil change. As Andrew puts it, if you're driving a diesel pickup truck and an oil change is $150, you should be setting aside $150 a month.

Repair costs aren't linear. You will hit expensive humps at 50,000, 100,000, and 150,000 miles. If you're near these milestones, budget on the higher side. Remember that DIY is not always the answer, as mistakes can cost thousands more.

Don't forget to save for the vehicle you will need after this one. To avoid a permanent auto loan, take your target car price and divide it by the months you have left on your current ride.

This math creates a safety zone. As Andrew explains, target divided by time... if we set aside $416 a month in two years we'll be at $10,000.

Treating car repairs as an inevitable monthly expense rather than an emergency changes your entire financial picture. Andrew recommends a dedicated savings account over an aftermarket warranty, so the cash is always yours to use.

When combining a repair fund with a replacement fund, ensure the total doesn't overwhelm your monthly cash flow. If it takes up too much of your income, you may need to extend your timeline.

Based on content by Andrew on Rogue Wrenching (YouTube).

Original: How To Budget For Auto Repair