Most Americans Can’t Afford Auto Repairs

Jill Cornfield, a retirement analyst for Bankrate, notes that “if you are human, have a pet, kids, a house or a place to live, something is going to happen that will cost you money.”

However, our changing economy, demographics, and spending patterns has left many Americans strapped for cash, and more have had to sacrifice proper car maintenance because they just don’t have the funds to pay for it.

AAA recently conducted a study that led to an alarming statistic – 60 percent of Americans don’t have enough savings to cover a $500-$1,000 unexpected expense, such as a brake malfunction or a new radiator.

Instead of worrying about such problems, those in need should consider auto loan refinancing as a way to lower their monthly payment. This would give them extra funds to put towards emergency situations such necessary repairs.

Additionally, purchasing a vehicle service contract, though a potentially higher upfront cost, could save money in the long run because they cover the expensive parts and repairs. This will reduce the potential for a vehicular issue to unwind a person financially.