People with cars need an emergency fund for big repairs or other emergencies. All vehicles need repairs occasionally, and high-mileage used cars experience issues more often.
To calculate adequate savings, take a look at the average cost of car repairs. In 2019, car repairs averaged between $342.14-$414.24, according to CarMD. Repair costs vary greatly depending on parts and location, so individuals should save at least a few hundred dollars for surprise maintenance.
Car owners invest money in other auto essentials for safe driving, including jumper cables, spare tires, and weather-related gear. Most do not cost too much, but need to be included in a budget. The right tools on hand for any situation help cut down on repair or towing costs. Investing in these less-expensive auto essentials decreases maintenance and repair costs later on.