- Younger people paid nearly $700 more in car repairs and maintenance, on average, than Americans aged 55 and older during the last five years. The survey found that, on average, U.S. adults:
- 18-34 spent $2,334
- 35-44 spent $1,978
- 45-54 spent $2,135
- 55 and older spent $1,654
- On average, households with children under 18 paid $347 more in car repairs and maintenance over the past five years than households without children ($2,201 vs. $1,854), suggesting that the expense of raising a family may be compounded by additional repair and maintenance costs.
"Unfortunately, there are too many Americans who are just one unexpected repair bill away from being forced to make tough financial decisions," added Manzo. "What's more, many of these drivers aren't aware of options, like vehicle service contacts, to make their repair costs more predictable."
The Ally survey also found that only 21% of Americans have purchased a vehicle service contract (VSC) or extended warranty in the last five years. VSCs are auto protection products that cover expenses such as repairs and replacement parts. Ally Premier Protection vehicle service contracts cover over 7,500 vehicle components and offer additional benefits including rental reimbursement, roadside assistance and reimbursement for trip interruption caused by a breakdown. Levels of coverage vary by plan.
Additionally, VSCs can be used to manage repair costs over an extended period of time, making these expenses more predictable and easier to fit into a household budget. When buying a new or used car from an auto dealer, VSCs can be financed as part of the monthly car loan payment. To help consumers make the most of their money, Ally provides information on vehicle service contracts, savings strategies and tools for starting an emergency fund.
Methodology: The survey was conducted online by The Harris Poll on behalf of Ally Financial from May 7-9, 2019, among 2,012 U.S. adults ages 18 and older. This online survey is not based on a probability sample therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variable and subgroup sample sizes, please contact Ally Financial public relations.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial-services company with $180.4 billion in assets as of June 30, 2019. As a customer-centric company with passionate customer service and innovative financial solutions, we are relentlessly focused on "Doing It Right" and being a trusted financial-services provider to our consumer, commercial, and corporate customers. We are one of the largest full-service automotive-finance operations in the country and offer a wide range of financial services and insurance products to automotive dealerships and consumers. Our award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage-lending services and a variety of deposit and other banking products, including savings, money-market, and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Additionally, we offer securities-brokerage and investment-advisory services through Ally Invest. Our robust corporate finance business offers capital for equity sponsors and middle-market companies.