A survey of UK drivers has found that 40% could not afford an unexpected car repair bill costing more than £249 without cutting back elsewhere, borrowing, using credit or delaying another bill.
The research was commissioned by Creditspring, which said that the average unplanned repair could cost up to £700, well above many drivers’ available budgets.
It also found that 25% of drivers had no money set aside for vehicle emergencies.
It found that only 20% of drivers factored unexpected repairs into their budgets, well behind other motoring costs such as insurance (46%), MOTs (42%) and road tax (42%).
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According to Creditspring, this situation means 14% of drivers see an MOT or service as a ‘financial lottery’, with 17% worrying that a routine check could uncover a required repair that they could not afford.
Car costs perceived differently to other bills
The research also identified a difference in attitude towards car costs, with those surveyed agreeing that a £500 increase in energy bills was more unsettling than an unexpected £500 car repair, despite the cost being identical. Creditspring said this suggested many drivers do not weigh up car costs in the same way as other household bills, even when the numbers involved were the same.
Tamsin Powell, consumer finance expert at Creditspring, said: “An unexpected repair bill is rarely just about the car. It can mean worrying about whether there is enough left for food, energy, rent or the bills that are already due.
“For households already balancing a tight budget, a fault can leave people feeling they have to choose between keeping the car on the road and protecting everything else. That is why a relatively modest repair bill can feel so disruptive.
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“You cannot plan for every breakdown. But you can make the shock more manageable by knowing the costs that are coming, putting aside what you can, and getting clear information before making a decision under pressure.”