Unless you have a tremendous income, certain auto repair expenses can hurt. This is especially true if you need a new engine, transmission, or even completely new brakes, calipers, rotors, and drums. Sometimes it requires a special style of budgeting to take into account the future auto repair expenses.
Just because you own a BMW doesn’t mean you’re immune to auto repairs in the future. While BMWs continue to be some of the most well-built automobiles in the entire world, the more times you drive, the more aggressive you are with acceleration and stopping, and other factors can contribute to potential problems arising that need to be addressed to either help that vehicle continue operating or staying safe.
There are several ways you can go about budgeting for future auto repair expenses. Whatever you do, even if you have just purchased a brand-new BMW and will be covered under warranty for a few years, you should begin setting aside some money every month for future auto repair expenses. You just never know when you may need them.
The more expensive the vehicle, the more expensive the repairs.
If you purchase a brand new BMW, when that vehicle is no longer covered under warranty, you should calculate that the auto repair expenses are going to be quite a bit more than you may have had to pay for a much cheaper vehicle. That’s because the parts necessary for repair will likely be much more expensive.
As a result, you want to budget quite a bit more every month to set aside for those potential future vehicle expenses.
Set it aside in cash.
If you have a savings account, you can certainly put money aside in their every month for those auto expenses, but you want to track how much you save every month so that if and when you need it, you only take out what’s absolutely necessary. By setting aside cash in an envelope, it can be more practical, even though you won’t be earning any interest on it.
Never assume everything is covered.
Just because you have a brand-new BMW doesn’t mean every potential repair is going to be covered by the warranty. There may be things that happen that are the result of negligence, aggressive driving, and other factors. It’s a good idea to budget and set money aside for potential future auto repair expenses.