They always seem to catch you by surprise and disrupt your life, taking time off work or away from family – and costing you a chunk of change. Car repairs and routine maintenance are a necessary cost of car ownership and something that we must plan for.
Car Maintenance –
How much to budget – I typically suggest setting aside $75/month per car if the value of the car new is roughly $40,000 or less. If the car new is over $40,000 add another $10/month per $10,000 – so if it is worth $70,000, save $105/month. If your car’s mileage is over 100,000 miles, you may want to set aside 1 year of expenses to start.
What is included – Oil changes, routine mileage maintenance, and repairs.
What is not – Known costs such as taxes and registration, and discretionary purchases like a new stereo or trailer hitch.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. All of these examples are estimates and should be taken as such. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual.