Could you afford an emergency car repair?

An emergency car repair is usually expensive, possibly hundreds of pounds. So what would you do if your car needs to be fixed and money’s tight? 

New figures from Creditspring show that the average cost of a car repair can reach up to £700.

But the same study shows that four in ten (40%) drivers wouldn’t be able to afford an unexpected car repair that costs more than £249 without either cutting back somewhere else, using credit, borrowing money or delaying another bill.

Drivers planning for predictable costs, not emergencies

Many drivers are actively planning for those expenses they know they’ll have to pay, such as car insurance (46%), MOTs (42%) and road tax (42%).

But one in five (20%) aren’t factoring unexpected repairs into their budgets, while a similar number (23%) are overlooking breakdown and recovery costs.

Motorists putting off essential car checks

Some are also taking the chance of driving a vehicle that’s not roadworthy because they’re worried about possible repair costs.

In fact, nearly one in five (17%) said they’re worried that a routine check could lead to them facing a repair bill they can’t afford.

Don’t forget the cost of parking

Paying for parking can be another big expense for drivers.

But, again, it’s one that many of us aren’t actually budgeting for.

Creditspring figures shows that more than one in ten (12%) drivers aren’t considering the cost of parking.

That’s despite the average driver paying £260 on parking every year.

How to manage unexpected car costs

If you’re a driver and want to be better prepared for surprise expenses, there are steps you can take.

Build a rainy-day fund

Unexpected car repairs don’t often come cheap, so it’s well worth creating a rainy-day fund - a pot of money set aside for emergencies.

You’ll then be able to cover at least some of these costs without resorting to borrowing or dipping into savings.

Even putting away a small amount into your rainy-day fund regularly could make a big difference if or when you ever need it.

Get on top of your budget

Work out how much of your income is going towards keeping your car on the road.

And then take a look at your other essential expenses, such as energy bills and housing costs.

If you know exactly how much money you’ve got coming in and what’s going out, you’ll be in a better position to prioritise vital expenses, plan for the unexpected, and see where savings can be made.

Check our guide to how to create a budget.

Don’t ignore warning signs

If you think something’s not quite right with your car, don’t ignore it.

Getting it checked sooner rather than later could help you deal with the issue before it gets worse, and keep costs down in the long run.

Ask for debt advice

If you’ve borrowed money to pay for car repairs and you’re struggling with repayments, contact us for confidential, practical and impartial debt advice.