How do I set my annual car maintenance budget
When you own a car, there are various important considerations to consider in order to get the full pleasure and endurance from your vehicle. Before purchasing a new car, it is important to budget for different related expenses that you will need to pay towards your car over its life time. Moreover, if you want to use your car for a longer time, you can also take steps to procure its condition by performing the necessary maintenance each year.
Firstly, you must figure out the specific car-related expenses you will need to include in your budget each month, and gradually each year. This will help you effectively decide on a more accurate budget. The following is a list of specific areas to consider when forming your annual vehicle maintenance budget in Canada.
- 1. Average Mileage
Based on how often you typically drive your car will help determine how much annual maintenance fees you need to set aside. The repairs or maintenance costs relate to the mileage you put on your car. For example, arriving at 20,000 km per year or higher is a usual time period for when more significant repairs will come into play. This is associated with how well you take care of your vehicle and which will devise how much you will need to budget for.
- 2. Care
As aforementioned, if you maintain your vehicle properly, determine the amount of driving you do, take into account the weather driving conditions, as well as the degree to which you you drive safely, you can also estimate the budget you will need for this annual expense. If you are race around for example, then it can mean that your car will require more servicing and repairs each year. This will increase your vehicle costs on average and may want you to set a large budget.
- 3. Age
As your vehicle ages, it is possible that it will need extra maintenance each year. Canadian weather especially can weaken any vehicle, as both summers and winters are extreme. An older car will likely need more complex repairs to ensure it runs to its maximum ability during these contrasting seasons. This is having consistent maintenance routines early in the vehicle’s life is pivotal to its condition in later years. If you have a new car, you may not have to budget as much for maintenance each year, however with an older model you may need to increase spending on this area.
How much should I budget for car maintenance annually?
On average, auto experts have stated with that a vehicle owner (whose car meets the 20,000 km/year mark) can typically expect to pay approximately $1,000.00 for the cost of maintenance fees. Of course, this can vary depending on the above mentioned factors. While this number is a good place to start – there are some more specific steps you can take to establish how much of a budget you will need each year to maintain your car.
- Step #1:
Receipts and records of your car maintenance costs for the previous 12 months will give you a good idea of how much you should budget for in the next year. All of these receipts are likely to include the costs of any oil changes, tires repairs, as well as any repairs and servicing you have had to pay for.
- Step #2:
Secondly, you will want to accummulate all of these maintenance expenses and calculate a total amount. To establish a monthly budget and determine how much you should aim to save each month for this financial area, you can divide the total by 12. For example, if you have found you have paid approximately $600 in car maintenance fees that year, then it is a good to set a budget goal of at least $50 a month.
- Step #3:
Examining the condition and age of your vehicle will help you to infer that your car could perhaps incur more repairs in the next year. Since you have discerned that you have previously paid $60 per month, you may want to take into account the fact that your car may require additional repairs in the upcoming year and increase this amount. As an example, you can raise that monthly amount from $60 to $100 or even $150 to ensure you have budgeted enough for the remaining year.
On the other hand, if you have already replaced major vehicle components (like the tires or brakes for instance) in the previous year, it is unlikely that you’ll have to replace them again the following year. This information can help you realize that your costs may not be as high as in previous years – it will depend on your current vehicle situation. A compromise of $100 per month for your car maintenance budget may be enough to cover these annual costs. As you can see, you can rely on these factors to help inform you of how much you should save for each year in order to maintain your vehicle and ensure its reliability.
Canada Auto Experts helps drivers obtain the car loans they need with their online car financing application. As you learn more about how to properly budget for the cost of a car, you are sure to find your experience as a driver will become even more satisfying as this will boost your credit as well. Call 1-855-550-5565 so they can get you approved today!