man looking into the hood of a car

If your household relies on a car, or two, to function, I think one of the smartest financial moves you can make this year is to spend money on car maintenance.

The longer you can keep your car humming and reliable, the longer you can avoid needing to purchase your next car. And that is a huge deal. Right now, between high car prices and high interest rates, the average monthly car loan payment for a new car is more than $700. And for a used car, the average is above $500.

Keeping your current car running smoothly can also save you plenty on insurance. I don’t have to remind you how much your car insurance premiums have gone up over the past few years. But I do want to remind you that when you purchase a newer car, you typically will have higher premiums. Driving an older car that is reliable saves you on insurance.

I know it may be hard to face a maintenance bill of a few hundred dollars or even more. I get it. But I can’t overstress that paying for this now is a money saver. It’s estimated that for every dollar you don’t spend on maintenance today, you will end up needing to spend $4 to $10 down the line because the lack of maintenance leads to bigger problems.

Replacing worn brake pads might cost a few hundred dollars today, but that’s going to be a fraction of what it will cost if they wear so low you do more serious damage (to say nothing of the danger of driving with worn brake pads). Staying on track with oil changes and coolant levels is how you avoid needing an engine overhaul. If your car runs on gasoline, clean air filters and good spark plugs will improve your gas mileage.

I never want you to keep driving a car that is unsafe. But I do want you to do everything you can today to keep driving a car that is reliable. Industry estimates are that being vigilant with your car’s maintenance can extend its life by 20% to 40%. And just do the math: even if you need to spend $2,000 this year on deferred maintenance, that’s still less than what three months of payments would be for a new car loan and four months for a used car loan.

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    Categories: Car Insurance, Car Loans, Credit & Debt, Financial Planning, Insurance, Saving