Your car accounts for one of the biggest budgetary expenses you have. Planning for these expenses ahead of time helps you to save money in long run because you won’t have to borrow money – i.e. use a credit card – to pay for them. The following four expenses are some of the most common auto expenses that you’ll face.
Your car’s tires suffer from a great deal of wear and tear throughout the year. They are subjected to all sorts of road conditions and potential threats, like sharp rocks, potholes, nails, and the like. You’ll want to price your tires ahead of time. Otherwise, you may find yourself unpleasantly surprised. According to Angie’s List, a set of four tires will run you as little as $400, but could cost you almost $2,000, depending on the kind of vehicle you have.
Financial guru Dave Ramsey recommends that people save at least $1,000 for emergency and maintenance purposes. When it comes to your car, you may not need that amount of money when you have minor car repairs and maintenance. But having it on hand ahead of time ensures that you won’t be surprised when the time for these repairs does come.
Emergency Crash Fund
Although your insurance company will likely cover most major accidents that you could find yourself in, you may still find that you have a deductible to pay. Your insurance won’t kick in until that requirement is meant. That being the cast, you’ll want to put aside at least enough money to cover your auto’s deductible. This fund can also cover minor accidents, which, if you pay for out of pocket, will help you save on insurance costs in the future. If the cost of your crash uses up all of your emergency crash fund, then you may have to contact your insurance company. An auto accident attorney can advise you about this matter if necessary.
Replacement Parts Fund
If your car is a classic car model, then you may have a harder time finding parts for it. As with the tires, you will want to price these items ahead of time. Otherwise, you may find yourself facing a bigger expense than you bargained for. You may also find that if the part is rare enough, it’ll be difficult to secure. The money you have on-hand to pay for the part/s allows you to buy it without worrying about the expense or the other car owners who may also want to buy the part before you can.
Actively planning your auto-expense budget can make all the difference to your bottom line in the long run. All cars come with some costs, though the size of those costs will vary depending on the type of car you drive. Therefore, it’s best to find out ahead of time how much each of the types of expenses on this list will cost and put away money to pay for them long before you ever need to break into your emergency auto fund.