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New research commissioned by Creditspring found that 40% of UK drivers could not cover a repair bill above £249 without cutting back elsewhere, borrowing, using credit or delaying another bill. Yet an unplanned repair can cost up to £600.
A quarter of drivers have no money put aside specifically for vehicle emergencies. A fault can quickly turn into a question of what gets paid this month: food, energy, rent or bills already due.
Car repairs rarely arrive just after payday or once you have had time to save. They can land just when other household costs are already demanding attention.
Limited room for a repair bill: 40% of drivers say they could not absorb a bill over £249 without making a difficult trade-off.
No vehicle emergency fund: 25% have no money set aside for unexpected car costs.
A gap between affordability and likely cost: Repairs can cost up to £600, much more than many people feel able to manage at short notice.
Drivers are more likely to budget for the costs they expect. Nearly half of drivers (46%) budget for insurance, while 42% do the same for MOTs and road tax.
Drivers are less likely to budget for the costs that can cause the biggest disruption. Only 20% plan for unexpected repairs, 23% for breakdown and recovery, and 12% for parking.
There is often little margin when a dashboard light comes on or a routine check finds something that needs attention. One in seven drivers say an MOT or service feels like a financial lottery, while 17% worry it could uncover a repair they cannot afford.
Why a car repair may be viewed differently from another bill
The price tag is not always the whole story. When asked to think about a one-off £500 cost, people found a rise in energy bills more stressful than an unexpected £500 car repair - even though the amount was the same.
As a repair can feel like a one-off, avoidable expense caused by bad luck, it is easy to treat it differently from an expected regular bill - such as an energy bill which is perceived more as an ongoing pressure on the household budget. But whichever way you perceive the cost, a £500 expense still has a real impact on your finances, so it’s important to understand your options before committing to a decision.
Tamsin Powell, Consumer Finance Expert at Creditspring, says: “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.
“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.”
Creditspring’s tips for managing unexpected car costs
1. Start small with a separate vehicle buffer
If you can, put aside a realistic amount each month for car costs. Even a modest buffer can give you more options when something goes wrong. If you do not need it, it can remain part of your savings.
2. Map out the costs you already know are coming
List when insurance, tax, MOTs and servicing are due, then divide the likely total into monthly amounts. Include parking and road charges where you can: smaller costs add up too.
3. Do not ignore warning signs
A dashboard light, an unusual noise or a change in how your car drives can be easy to put off. Getting advice early can give you more time to understand the issue and compare your choices before it becomes more expensive.
4. Ask the garage for a clear breakdown
Ask for an itemised quote. Ask which work is essential for safety and roadworthiness, what can wait, and whether there is time to get another quote.
5. Pause before using credit
If borrowing is necessary, look at the total amount repayable, when repayments are due and what they mean alongside your existing bills. The right choice is one you can afford to repay without causing another problem.
Unexpected car costs are easier to manage when you have time to weigh up the next step. Knowing the predictable costs, building a buffer where you can and asking the right questions when something goes wrong can help you stay in control.
