Vehicle maintenance costs are an expense no one wants to deal with. At first glance, the monthly expense of an extended auto warranty or one of our top-rated Ambassador Plans may feel like a burden. However, we dug through the research, averages, and data of vehicle maintenance costs and repairs to reveal the answer to the question, “Will an extended auto warranty save me money?” Take a look at the facts:
Annual Vehicle Maintenance Costs
Maintenance (**Excluding depreciation): Vehicle Maintenance was up .99 percent to 5.11 cents per mile/$766.50 per year (+$7.50) from year-to-year. Annual maintenance, including labor time and repair part costs associated with factory-recommended maintenance, was factored into the 2015 survey along with average costs of an extended warranty. Vehicle maintenance costs varied widely by vehicle type but, on average, were up slightly from 5.06 cents to 5.11 cents per mile.
A recent survey of AAA-Approved Auto Repair shops found that the majority of drivers are behind schedule in routine maintenance, including oil changes, tire maintenance, and battery inspection/testing.
Consumer Reports estimates maintenance and repair (excluding tires, accidents, warranty-excluded repairs) costs at $2,500 for a luxury SUV over five years including three years under a warranty. That means that even when covered for the initial warranty period, costs remained around an average of $500/year and are guaranteed to spike immediately after three of them.
Factor in Unanticipated Repairs
$2,604. This is the national average per repair, taking every state’s average into account. A National Average per repair, with states like Rhode Island, Texas and New York placing above average, and states like Hawaii, Oregon and South Carolina falling below average.
This data was generated by Audatex, an independent company that supplies statistics to insurance companies, repair shops, and the government. This data was used by the Property Casualty Insurers Association of America to prepare their annual report on automotive repairs.
How Much Are Labor Costs Per Repair?
In almost all cases, labor accounts for at least 40% of total repair costs. (See our blog about knowing your stuff around a mechanic). Factor in labor costs, parts costs and the possibility of minor collision or replacement repairs and you have a conservative estimate of $2,000/year per vehicle.
With a potential monthly payment of $30 for a Protect My Car Ambassador Plan, your savings could end up being astronomical ($406 on maintenance alone). Call us now for more information and we’ll walk you through the steps to financial freedom from your vehicle costs.