Unexpected car issues are much more common than we think and they can be very expensive. A poll that was conducted by Harris Poll showed that over 50% of consumers ended up paying for at least one major car repair in the past 5 years. These are fixes that are not at all cheap. 1 in 3 people actually ended up spending over $2,000.
We also now know that almost half of adults cannot afford an emergency expense of $400. In the event that your car is damaged and needs repair, the only option that often remains is to borrow money. Some even have to sell items they own to pay for the car repair.
We are now looking at a very clear picture. The surprise vehicle repair does happen more often than owners think and they are often a very big expense that can put a strain on a personal budget.
Learn About Car Owning Price
The actual full price of car ownership is much higher than what many believe. The price tag is just much higher than what you expect to pay for the car, insurance, and fuel. These are the expenses that you normally take into account when you calculate an overall vehicle budget. Unfortunately, it is not enough. You need to also put money aside for routine maintenance and unexpected repairs. When you do not do this, you will be caught off guard in the event that something bad happens and a repair is necessary.
How Do You Protect Yourself From Expensive Repairs?
Fortunately, there are only two things that you have to do to be protected from expensive future repairs:
Get An Extended Warranty
When you buy a new car, it is covered for a number of years by a factory warranty. When this period ends, you have to still be protected so you need an extended warranty. There are even options that are particularly created for the type of car that you need. As an example, check out Olive’s Mercedes extended warranty options.
By having an extended warranty, you can be sure that repairs will cost you a lot less than the full price you would be charged when you go to the auto repair shop. Thousands of dollars can be saved over the duration of car ownership.
Sign A Vehicle Service Contract (VSC)
The VSC is also sort of an extended car warranty but you usually set up a partnership with a particular auto repair shop. Basically, you just take your car there and you get discounts for the work that is done. Having a close working relationship with a single auto repair shop is a very good idea since the mechanics get used to the car and will keep records of all the repairs done in the past.
On the whole, getting ready to deal with unexpected expensive car repairs is not at all something that is difficult. However, it does involve you actually being proactive. Do not wait until the first catastrophic failure happens to protect your finances.