If Your Car Breaks Down
Most people on a tight budget have one prayer: “Please don't let anything happen to my car.” That's because car repairs can cost hundreds or even thousands of dollars, and you often can't get back and forth to work without a car. So what do you do if your car does break down?
Immediately Find a Way to Work
Whether you have to arrange for a ride from a coworker, ride a bike, take the bus, rent a car, or walk, if you're in an accident or your car isn't running, figure out a way to get to and from work without delay. Too many jobs have been lost because, for three or four days, an employee couldn't get to work and an employer wasn't very understanding.
If you have to miss or be late for even one day of work because of your car, call your supervisor and explain that you have car problems and are trying to find an alternate way to work right away.
Consider alternate ways to get to and from work before your car breaks down. Even if you never have a bit of trouble with your car, you'll have the peace of mind that comes from knowing how you'd handle a car crisis if you had one.
Research Your Warranty and Insurance Coverage
If you recently bought the car new and your car troubles aren't due to an accident, your car is probably under warranty and will be repaired for free.
Even if you bought the car used, you may have a short-term warranty that covers the repairs you need. If your car isn't running because of an accident, call your insurance company to determine how much of the repairs your policy pays for.
Get a Free Repair Estimate
How do I describe a problem if I don't know anything about cars?
Simply tell the repair shop what sounds you're hearing as you drive (try to make the sounds for them) or what happens when you turn the key. This will give experienced mechanics enough information to give you a ballpark estimate of the repair costs.
If you can get your car to a repair shop, take it there and ask for a free, no-commitment estimate. Make sure you emphasize the “free” and “no-commitment” parts of the estimate. Many repair shops don't charge for estimates as long as you end up repairing your car there.
If you decide not to repair it, or if you go somewhere else for the repair, they'll bill you $50 or $100 for the estimate! Be sure to let the repair shop know that you're on a very tight budget and need to know the least expensive way to get your car running again.
If you can't get your car to a garage or repair shop without towing it (which can be very expensive), call a few garages and describe the problems you're having. Tell them about your tight budget and ask for a ballpark estimate for the problems you're describing.
Some car repairs are simple enough to do yourself. If you or a friend or family member know anything about cars, consider buying the parts and fixing it yourself. If you have an alternative way to work every day, you can spend a few hours each evening working on your car until it's repaired.
Call Around to Compare Your Price
After you know what the problem is, call several garages in your area to find out what they will charge for the same repair. Emphasize that you need to know the total amount and can't afford any surprises. If they won't give you a price, call somewhere else.
If you're going to have it repaired and can't drive it, also call several towing companies to find out how much they'll charge to tow your car to the shop. Keep in mind that your insurance company or travel club may also offer free towing in a limited area. Find this out before you call a tow truck.
Find Out If the Shop Will Let You Pay Over Time
When you find the repair shop that has the best prices and can get the job done quickly, find out whether they'll let you pay over time, say, in three or four payments, without charging interest. They may say no, but it's worth asking.
There are several credit cards that help with car expenses, either giving you rebates on gasoline purchases or giving you points that you can use to buy a new or used car, maintain your car (with tune-ups and oil changes, for example), or make needed repairs.
Develop a New Budget
Using the repair estimates, develop a new budget. Do you have money in savings that you can use? Can you pay the shop a little each month? Can you make the repairs yourself? Can you live without a car and walk, bike, or carpool to work? Can you buy a new-to-you car and still stick with your budget?
Investigate every possible option, but be realistic in your numbers. Whatever route you decide to take — whether that's to make the repair, get another car, or find a way to do without — use your revised budget to begin working toward your financial goals again.
