When you purchase a new car, or a good used car, a person will generally budget for the car payment, insurance and fuel. What gets left out is a regular yearly budget for repairs and maintenance.

According to the Bureau of Labor Statistics an average family spends 32% of their annual income on shelter or housing and 18% of their annual budget on vehicles or transportation. It is the second highest expense for a consumer. When a major issue, failure or repair occurs with your vehicle, if you are not prepared can set your budget back for months.

Consumer reports states that when you purchase a brand new car, your repair and maintenance budget should $400.00 for the first year of ownership and $800.00 for every year thereafter. This budget should take care of tires, maintenance and repairs as needed.
Obviously it is going to be less some years and more others and it will depend a lot on the type of vehicle you purchase, how much you drive and what type of driving you do.

Before you purchase a vehicle, either new or used, remember there is a significant cost to vehicle ownership. This cost can greatly vary by the type of vehicle you purchase and it includes:

  • Purchase Price
  • Depreciation
  • Interest
  • Insurance
  • Fuel
  • Maintenance and Repairs

So keep your family budget in check by making sure to make vehicle service and maintenance an item on your budget. Happy Motoring! This article is written by the owners of All About Automotive, Inc. Steve and Karen Johnston. The place to go in Gresham Oregon for Auto Repair and Service.

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