Estimated reading time: 11 minutes
Avoid costly surprises with proper budgeting. Learn about the importance of factoring in car maintenance costs when buying a vehicle.
Updated September 2024
Car Maintenance Costs Are Budget Expenses Too!
Purchasing a vehicle just because you can initially afford it or the monthly payments is only part of the process as a responsible owner.
Next to buying a home and getting a mortgage, purchasing a vehicle is the second most expensive expense for everyone.
Sorting regular vehicle maintenance repairs as required will save you from more considerable expenses if you choose to ignore them.
Vehicle Affordability Is Often Forgotten
Before you even say yes to purchasing any vehicle, you must answer one question.
Can I afford to maintain this vehicle, and what are the short and long-term costs involved?
I can promise you this is one question many vehicle owners fail to answer before signing a purchase agreement.
I can’t tell you how many times I’ve read on Facebook or had people call me asking if I know an inexpensive mechanic.
The fact is that trades are not cheap and never will be unless you have someone in the family or a friend who works for free or reduced costs.
You’ll pay anywhere from $85/hr to over $150/hr just for a mechanic to work on your vehicle, depending on the dealership or shop you go to.
It’s not cheap, and other costs come with car maintenance that must be considered.
As consumers, we become smitten with vehicle name brands, colors, and what the vehicle offers compared to the price.
We all know that the Manufacturer’s Suggested Retail Price (MSRP) on vehicles is negotiable, as is buying a used car, but what’s not is car maintenance costs.
Projected Expenses For Car Maintenance
How much does it cost to maintain a car each year?
One crucial budget category we included was car maintenance with projected expenses when we created our budget.
Once you find out actual or average costs based on your vehicle, you can budget your car maintenance costs more accurately.
Creating a car maintenance spending log to document typical repairs and costs is a great way to track your expenses.
It will also help when it comes time to create your yearly projected expenses for car maintenance costs.
Budgeting Car Maintenance Costs
How much should I budget for car expenses?
There are a few things to consider when budgeting costs for your car expenses, including vehicle repairs each year.
- How old is your vehicle?
- What make and model is your vehicle?
- Are there any global concerns you are aware of regarding your vehicle?
- How much does a tank of gas, on average, cost you?
- How far do you drive your vehicle on average each month or year?
I’d advise anyone in the market for a new or used vehicle to answer these questions BEFORE purchasing.
Related: How To Buy A New Vehicle In Canada
Doing so will give you a general idea of how much your car maintenance costs will be monthly or even yearly.
It won’t be an accurate number as many things can go wrong with a vehicle.
The idea behind this process is to understand that the costs of an oil change on a luxury BMW will be far more expensive than that of a Dodge Minivan.
Another to consider is that not everything that breaks down on a vehicle is covered under warranty.
Always read a warranty in full, whether you buy new or used, before buying to ensure it covers all the expensive stuff.
A broken A/C, for example, can run into the hundreds to get fixed or replaced by your local mechanic.
Getting Your Vehicle Road Ready
- Vehicle Car Insurance Costs
- Driver and Vehicle Fees in Ontario or other parts of Canada
- CAA or other Towing packages
Vehicle Service Costs
Below are some typical services you will need to consider for car maintenance.
Every vehicle will be different, so your best bet is to read the owner’s manual and car service schedule.
It’s a good idea to do so before you purchase your vehicle if you might struggle to pay for car maintenance costs.
I could give you average prices for all these, but it’s your duty as a vehicle owner to do the homework.
There’s no point in me putting numbers below if yours will differ.
Find A Trusted Mechanic
Instead of going to those so-called car fixing places, you should always source a licensed mechanic or go to a local reputable dealership or an independent shop.
There’s no point in getting shady work done on your vehicle and having to chase down someone who has no intention of fixing the mess.
If you don’t have a mechanic you trust and are unsure about what you are potentially being billed, opt for a second opinion.
I realize there will be times that you can’t do this because your vehicle is inoperable, but if you are not covered under warranty and it runs, ask around for quotes.
Typical Automotive Services
We do this at the start of the year; however, if you are starting a budget mid-year, you can also factor in projected expenses.
- Cost of an Oil Change and how often is it needed
- Any costs for vehicle maintenance scheduled by the dealership for new vehicles and warranty purposes
- Cost of new or used Seasonal tires or Winter tires (watch for sales)
- Wheel alignment check with new tires, tire rotation, or every 20,000 km
- Cost of new brakes
- Costs for a car wash can run anywhere from $5 to $20 at a touchless car wash.
- New Battery cost: good battery maintenance can make a battery last 7-8 years.
- Costs for a tune-up
- Air filter changed yearly or depending on mileage/driving conditions
- Suspension and Steering Repair
- Spark plugs, wires, coils
- Fluid Top-Ups such as coolant
- Engine Service (as needed)
- Timing Belt Replacement, usually at a set mileage as opposed to a timing chain
- Transmission Fluid Filter and Oil change
- Wiper Blades as needed
- Exhaust repair
- Annual Oil Spraying Costs around $140
Related: Essential Winter Vehicle Maintenance Tips
Driver’s Licence Fees Ontario 2024
Since March 2022, the traditional license plate sticker has been abolished for most passenger vehicles.
| Service | Current fee |
|---|---|
| Original driver’s licence (G1, G2, G) | $90 |
| Renew a driver’s licence | $90 |
| Replace a driver’s licence | $35.75 |
| Replace a driving instructor’s licence | $35.75 |
| Reinstate a suspended driver’s licence (learn more about additional penalties) | $281 |
Starting July 1, 2024, eligible licence plates will renew automatically. Find out if your licence plate is eligible for automatic renewal. Learn what to do if you need to take action to renew your plate.
Your plate may automatically renew if you drive a:
- passenger vehicle
- light commercial vehicle under 3,000 kg
- motorcycle
- moped
When your licence plate automatically renews:
- it will be valid for 1 year
- law enforcement will be instantly aware your licence plate was renewed
- we will not contact you to confirm your plate was renewed
- you will not receive a sticker
- you will not have to pay a fee
If you lose or need a new licence plate it will cost you:
| Licence Plate Replacements | $25.13 – $127.17 |
|---|
For more info about licence plate renewals, visit Service Ontario.
Renewing your driver’s licence happens every 5 years, and the best part is you can do both online now if eligible.
You may be eligible to renew your health card and driver’s licence at once for a $90 fee each.
Your new licence will arrive in the mail within 4 to 6 weeks and is valid for 5 years.
That means no more long line-ups at the Ontario Service Centres with meat tickets.
If you are over 80, you must complete a vision test, in-class screening, and group renewal session.
Having to fork over cash like this is what I would consider part of my emergency savings, but consider the financial implications of the replacement on your budget.
Creating A Projected Expense
If you create a budget for car maintenance and want to add licence renewal fees of $90, here’s how you do it.
$90/60 months (5 years)= $1.50 monthly that you need to save in your projected expenses account to have the money ready to pay for your renewal fee.
You would do the same for any other fees related to your vehicle, cost divided by time (when you need to pay the bill) equals how much you save monthly.
The choice is up to you how you pay but saving it monthly is the smart way to budget for these expenses.
Car Repair Estimates
One question you may want to consider when purchasing a vehicle, new or used, is whether there is a mechanic shop that can service your car.
The reason I am telling you this is because not every city or town has a dealership for every make and model.
You also have to consider that not all local dealerships have mechanics that can work on every vehicle that is manufactured.
Perhaps you need specialized parts, or you have to drive out of town to find a mechanic who can work on a specific vehicle.
If you have a local mechanic you trust and work with on a regular basis it’s a good idea to consult with them when buying a vehicle.
They may have significant advice to offer you especially when it comes to maintenance costs.
Simple Car Maintenance
If you’re handy like I am you can probably do simply car maintenance at home such as changing your oil, topping up fluids, wiper blades, swapping tires from summer to winter and so on.
By doing so you will not only save yourself money but the time it takes to bring in your vehicle for the car maintenance repairs.
Save yourself some money by watching for flyer sales at Canadian Tire or other shops that sell parts that you commonly would use for your vehicle.
Keep in mind if you have a new vehicle, your warranty may instruct that only a dealership or licensed mechanic can work on your car for a certain duration.
Don’t try to save money but void your warranty at the same time as that WILL cost you big bucks.
Read, Read, Read and ask questions if you are not sure.
Once you have all your average prices you can then do the math for your yearly budgeted projected expenses.
It will be the most intelligent financial decision you’ll make when it comes to owning a vehicle.
Get Rid Of Car Maintenance Costs For Good
At the end of the day if you can’t afford to run your vehicle then perhaps consider selling it and opting for public transportation.
The good thing is that all you need to pay for is bus tickets and your time.
Discussion: What mistakes have you made when it comes to buying a vehicle and car maintenance costs?
Leave me your comments below or anything else you’d like to add to the post above.