A new survey from the Triple-A has found that one in four drivers in the U. S. could not pay for a car repair of $2,000 if faced with such a repair today. The survey found one in eight would be unable to pay for a repair bill of $1,000.
More than half of American drivers also said they are holding onto their older vehicle because they do not want the financial burden of a new vehicle. The survey also found that one quarter of drivers admitted to neglecting repairs and maintenance on their vehicles in the past 12 months due to the economic climate.
Triple-A officials say it’s important for drivers to not only continue to maintain their vehicles, but also have a financial emergency plan in place should they be faced with a sudden unexpected auto repair bill.
According to the survey, 38 percent of American drivers could pay for a $2,000 repair bill with funds in a savings account, while 20 percent would pay with their credit card. Eleven percent said they would have to borrow money from their friends, family, retirement or home equity in order to pay for a $2,000 repair. Slightly more Americans reported being able to pay for a $1,000 repair bill with 46 percent saying they could use savings and 22 percent using a credit card. Fourteen percent would look to borrow from their friends, family, retirement or home equity.
