About the money: car maintenance

Once your new car’s warranty expires, you may start to find a number of small repairs that can quickly turn into big projects if you don’t fix these issues all at once. Car maintenance can be expensive, but putting it off can lead to even more expensive repairs. Fortunately, if you’re on the right budget, you can pay for your maintenance as needed, avoid costly repairs, and keep your car in tip-top condition for longer.

1. What you spend. What did you spend on car costs last year? Take your maintenance and repair costs out of your total costs, separating car insurance, registration fees, fuel costs, and package taxes. This will be a good starting point for anticipating what you may be spending next year. Yes, keep a calculator handy as you can tabulate your figures accurately and easily.

2. Consider future costs. If you’ve owned your car for some time, it may be due to some of the biggest maintenance issues. This may include replacing your timing belt, installing a new muffler, buying a new set of tires, or something else. There may be something else in the owner’s manual, so get that book out too. Look at the manufacturers’ maintenance schedule and compare it to your odometer. Plan to handle maintenance issues that you may have overlooked, as well as those that lie ahead in the next 12 months.

3. Divide and conquer. With last year’s figures in hand and your known projected costs, add them up. Divide that number by 12 to find your monthly average. For example, if you estimate that maintenance will cost you $ 1,800 next year, you will need to set aside $ 150 per month to cover your expenses.

4. Save your cash. You know how much is needed for the next 12 months and how much to set aside each month. You can break this down even further by dividing the yearly total by the number of paychecks and setting that amount aside for car maintenance. So if you get paid in any other week, divide that $ 1,800 by 26 to come up with almost $ 70 per pay period. Open a savings account and plan to fund it accordingly.

Looking to the future

You may also want to set aside additional money for your next car down payment. In fact, with careful planning, you may also be able to pay cash for your new car. Don’t put off saving for car maintenance or work that needs to be done. A well-maintained car will last longer and keep you and everyone else safe, too.