One in Four Americans Could Not Pay for Major Car Repair, According to AAA Survey

One quarter of American drivers neglecting car repairs and maintenance due to economy; More than half keeping older car to avoid financial burden of newer model.

Denver, August 3 – One in four American drivers could not pay for a car repair of $2,000 if faced with one today, according to the results of a survey released by AAA. The survey also found one in eight would be unable to pay for a repair bill of $1,000.

More than half of American drivers also said they are holding onto their older vehicle because they do not want the financial burden of a new one. And, one quarter of drivers admitted to neglecting repairs and maintenance on their vehicles in the past 12 months due to the economic climate, which AAA Automotive experts say can greatly increase the likelihood of their car needing a costly, major repair.

According to the survey, 38 percent of American drivers could pay for a $2,000 repair bill with funds in a savings account, while 20 percent would pay with their credit card. Eleven percent said they would have to borrow money from their friends, family, retirement or home equity in order to pay for a $2,000 repair.

Slightly more Americans reported being able to pay for a $1,000 repair bill with 46 percent saying they could use savings and 22 percent using a credit card. Fourteen percent would look to borrow from their friends, family, retirement or home equity.

AAA Colorado automotive experts explain that a $1,000, $2,000 or higher repair bill can quickly appear – especially on older vehicles that have not been properly maintained. While repair costs can vary greatly by make, model and type of repair, in Colorado a transmission repair can be $2,000 to $4,000, while an engine repair can exceed $5,000. Major brake repairs may range from $350 to $1,000, and a new set of tires can run from $300 to more than $1,000.

AAA offers Approved Auto Repair services to help members prepare for and save on costly repair bills. Approved shops meet tough professional standards for customer service, cleanliness, equipment and training. All AAA members receive a free maintenance inspection upon request in conjunction with any other paid service. Additionally, many AAA Approved Auto Repair shops participate in the AAA Show Your Card & Save program, providing discounts on repair and maintenance to AAA members. A listing of approved shops is available at AAA.com/Repair.

The telephone survey was conducted among a sample of 1,009 adults, 18 years of age and older, living in the continental United States. The survey has an average statistical error of ±3.6 percent at the 95 percent confidence level for all U.S. adults.

AAA Colorado has more than 540,000 members and is an advocate for safety and security for all travelers. As North America's largest motoring and leisure travel organization, AAA provides over 52 million members with travel, insurance, financial and automotive related services, as well as member exclusive savings. AAA can be visited at www.AAA.com.