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AAA survey says one in four Americans could not pay for a major car repair
Orlando, Fla.—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
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say can greatly increase the likelihood of
their car needing a costly, major repair.
“Economic conditions have taken their
toll on many Americans resulting in them
neglecting their cars and leaving them at
increased risk for very expensive repair
bills,” said Marshall L. Doney, AAA vice
president, Automotive and Financial
Services. “Many Americans rely on their
cars for their livelihood and losing access to
them could be financially devastating
during an already troubling economic time.
“It’s important for drivers to not only
continue to maintain their vehicles, but also
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have a financial emergency plan in place
should they be faced with a sudden
unexpected auto repair bill,” Doney said.
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 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,
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 several services to help
members prepare for and save on costly
repair bills including:
• AAA Approved Auto Repair — AAA
inspects and approves nearly 8,000 auto
repair shops in the U.S. and Canada.
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
nearby approved shops is available at
AAA.com/Repair.
• AAA Online Savings — AAA
encourages Americans to have an
emergency fund set aside for unexpected
expenses such as costly auto repair bills.
AAA offers an online savings account
through Discover Bank that provides easy
access to funds in the event of an
emergency. Additionally, the AAA Online
Savings Account offers special AAA
member-only interest rates, more than five
times the national average, according to
Informa Research Services, with interest
compounded daily for maximum earnings.
Members can open a AAA Online Savings
Account at AAA.com/Deposits.
• AAA Member Rewards Visa — For
those who pay for auto repairs with their
credit card, the AAA Member Rewards
Visa credit card offers members an
opportunity to earn vouchers good towards
auto repairs at AAA Approved Auto Repair
facilities. In addition to 2,500 bonus points,
members receive one point for every dollar
they spend, with triple points on AAA and
travel purchases and double points on gas,
grocery, and drug store purchases.
Members can redeem as little as 5,000
points for a voucher good at any AAA
Approved Auto Repair facility, allowing
that month’s repair bill to help pay for
future ones. Members can apply for the
AAA Member Rewards at
AAA.com/CreditCard.
The telephone survey was conducted
among a sample of 1,009 adults. The
survey has an average statistical error of
plus or minus 3.6 percent at the 95- percent
confidence level for all U.S. adults. n
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President Bush and Chrysler CEO to
speak at NADA and ATD in Las Vegas
Las Vegas–President George W. Bush
and Sergio Marchionne, CEO of Chrysler
Group and Fiat S.p.A., are the scheduled
keynote speakers for the 2012 NADA and
ATD Convention and Expo in Las Vegas
in February.
NADA Chairmen Stephen Wade and
Bill Underriner will also deliver industry
remarks. The inspirational address will be
provided by Aron Ralston, who had to
amputate his right arm with a knife to free
himself from a boulder after a hiking
accident. His autobiography “Between a
Rock and a Hard Place,” was the subject
of the film, “127 Hours.”
The 2012 convention, which runs Feb.
3-6, at the Las Vegas Convention Center,
will mark the first time that the NADA
and ATD conventions will be held
together.
The convention also includes workshop
sessions, franchise meetings, hundreds of
exhibits, and a new Social Connection
Zone.
“The exchange of ideas, updates on the
latest marketing concepts and networking
with fellow dealers at the convention is a
rewarding experience,” said Rick
Morrison, NADA convention chairman.
“There is no other event that offers
dealers and its managers so much at one
time in one location.”
To register online, visit
nadaconventionandexpo.org. n
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