TUSCALOOSA COUNTY, Ala. (WBMA) — Fewer Americans are prepared to cover an emergency expense out of pocket. With people driving their vehicles longer, unexpected repair bills can quickly wipe out what savings they do have.
According to consumer affairs, the average American’s saving rate has dropped to 3.4 percent since September of this year.
Several residents in Tuscaloosa County explain whether or not they can cover a thousand-dollar car repair bill without using credit cards or taking out a loan.
“No, but I’m fortunate I have a brother that works on vehicles and cars,” said Marty Harrison.
“I do but there is a lot of people that don’t,” said Pitts Automotive owner Chad Pitts.
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“A car is the worst investment you will ever make, don’t put too much money in them,” said Harrison.
Bill Miller owner of Ttown Beemer Works said in his experience most drivers are not properly prepared for major unexpected car trouble.
“What seems like it used to be a small repair definitely catches most Americans budgets unaware now and most of the time they hope to either catch it on a credit card,” said Miller.
Miller said it’s a state of shock when he quotes auto repairs to drivers.
“We try to prioritize that ok this repair is going to get you on the road again and these two are following very shortly after,” said Miller.
Chad Pitts of Pitts Automotive has worked with cars for well over twenty years and said before the pandemic you could easily purchase a decent car for under 25 thousand dollars.
“There was a lot of cars since corona that haven’t been taken care of, and manufacturing has gone down. There was the chip shortage that really put a stunt on new car production,” said Pitts.
Consumer affairs stated new car prices have increased by 21 percent since pre pandemic and a 36 percent increase for used cars.
As a result of this drivers are opting to hold onto their current vehicles as long as they can