The rising trend of deferred automotive maintenance highlights a growing challenge for American drivers: balancing the immediate need to cut expenses with the long-term costs of neglecting important vehicle repairs. As inflation and interest rates squeeze household budgets, many drivers are delaying critical upkeep, putting both their wallets and safety at risk. This development in automotive finance was outlined in a recent article on Fox Business by Daniella Genovese, featuring quotes from our very own Jared Levy. The following is a summary and commentary of the original article which can be found HERE.
The Financial Strain Behind Deferred Maintenance
Rising costs across the board—housing, food, and insurance—have left little room in many budgets for routine car maintenance. Add to this the inflated car prices during the pandemic and the jump in monthly auto loan payments, and it’s no surprise that some drivers are prioritizing immediate expenses over oil changes and tire rotations.
However, the financial implications of skipping maintenance can be severe. Low or dirty oil can lead to engine failure, resulting in repairs that cost thousands of dollars. Likewise, neglecting tire rotations accelerates uneven wear, reducing traction and increasing the risk of accidents. While these short-term savings may feel like a relief, they can lead to significant long-term costs.
Aging Cars and Rising Repair Costs
The average age of vehicles on the road has reached a record 12.5 years, driven in part by supply chain issues and a limited inventory of new cars during the pandemic. As cars age, they naturally require more upkeep. Deferred maintenance on older vehicles can compound problems, turning minor repairs into major expenses.
For many drivers, these costs come at a time when auto loan delinquencies are on the rise. The Federal Reserve has reported that delinquency rates now exceed pre-pandemic levels, driven by the higher monthly payments associated with cars purchased in the last few years.
A Shift Toward DIY and Small Shops
Interestingly, not all drivers are neglecting their vehicles. Some are finding creative solutions, such as performing maintenance themselves or turning to smaller, independent repair shops that might not report to data aggregators like Carfax. This trend reflects the resourcefulness of consumers facing tighter budgets, though it also underscores the growing divide in how vehicle maintenance is approached.
A Broader Economic Reflection
The trend of deferred vehicle maintenance is emblematic of larger economic pressures facing American households. It’s a reflection of how rising costs in one area—like housing or food—cascade into other aspects of life. It’s also a reminder of the precarious balance many families face as they navigate inflationary pressures and rising interest rates.
The Road Ahead
Deferred maintenance might save money in the short term, but the costs—both financial and safety-related—are likely to catch up. Addressing this issue requires more than urging drivers to keep up with maintenance; it calls for broader solutions to alleviate financial pressures on households.
As the age of vehicles continues to climb and economic pressures persist, finding innovative and affordable ways to support vehicle maintenance will be essential. Whether it’s through community-driven repair programs, partnerships with independent shops, or educational initiatives, helping drivers stay on top of maintenance is not just a matter of personal safety—it’s a collective investment in our shared infrastructure.
CLICK HERE to read Fox Business’ original article, by Daniella Genovese.
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