Quarter of drivers have no money set aside for vehicle emergencies

With households already stretched by the cost of food, energy and other essentials, new research suggests millions of UK drivers are just one fault away from a financial shock. New research commissioned by subscription lender Creditspring among 1,273 UK drivers found that a quarter (25%) have no money put aside specifically for vehicle emergencies, leaving many with nowhere to turn when a fault strikes.

Four in ten (40%) UK drivers say they could not afford an unexpected car repair costing more than £249 without cutting back elsewhere, borrowing money, using credit or delaying another bill. Yet the average cost of a car repair can reach up to £700 leaving drivers facing a potential shortfall of almost three times what they say they could comfortably afford.

Nearly one in seven drivers (14%) say they cannot afford to save regularly for costs like this, while a similar proportion have simply not thought about it. Others (8%) say they are happy to take a chance on nothing going wrong.

Yet, when a repair bill does arrive, drivers are most likely to turn to savings (29%) or a credit card (19%) to cover it – both of which come with their own trade-offs. Savings are often put away with a goal in mind and can leave people with even less of a buffer for what comes next, while paying by credit card can mean the true cost of a repair grows the longer it takes to pay off.

The research suggests many drivers aren’t fully considering the right budgeting when it comes to their vehicles. Car insurance (46%), MOT (42%) and road tax (42%) are all front of mind, and the annual costs drivers say they plan for most, but the costs more likely to catch someone out sit much further down the list.

Unexpected repairs (20%), breakdown and recovery (23%) and parking (12%) are elements that drivers aren’t factoring into budgets. With research suggesting that the average driver’s parking bill per year is £260*1, the gap between what drivers plan for and what actually derails them could leave many exposed exactly when it matters most.

That unpredictability is already colouring how drivers feel about routine motoring costs. One in seven (14%) say an MOT or service feels like a ‘financial lottery’, while 17% worry that a routine check could uncover a repair bill they cannot afford – a sign that anxiety about car costs often sets in long before anything actually goes wrong.

The disconnect goes further than budgeting habits. When asked to name their most stressful one-off cost, Brits agreed that a £500 increase in energy bills was more unsettling than an unexpected £500 car repair, despite the two carrying an identical price tag. It suggests many drivers do not weigh up car costs in the same way as other household bills, even when the numbers are the same, perhaps because a repair feels unplanned, or more like bad luck than a bill.

Tamsin Powell, Consumer Finance Expert at Creditspring, said  “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.”