AAA Says a Quarter of Americans Can't Afford a $2,000 Bill

With over 52 million members under its wing, the American Automobile Association (AAA) surely knows a thing or two about owners and their habits. There’s no denying America has its fair share of the less fortunate, but a recent survey has put an automotive spin on this fact.

According to an AAA survey, out of 1,009 adults in the continental United States, the AAA found that 12.5% couldn’t cover a US$1,000. Furthermore, that figure went up to 25% when the surveyed people were asked if they could fork out $2,000.

In addition, half the people said they are keeping their older cars until the economy stabilizes, while 25% admit to not doing the proper repairs due to lack of money.

“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. Many Americans rely on their cars for their livelihood and losing access to them could be financially devastating during an already troubling economic time," said Marshall L. Doney, AAA’s VP for Automotive and Financial Services.

"It’s important for drivers to not only continue to maintain their vehicles, but also have a financial emergency plan in place should they be faced with a sudden unexpected auto repair bill,” Doney adds.

Of those 75% who say they can afford to pay $2,000 for car servicing, 38% said they would have to dig into their savings account, while 20% said they would pay by credit card and 11% would have to borrow money from friends, family, their retirement fund or home equity to pay it.

Things look a little better when it comes to a $1,000 bill, as 46% said they would pay with their savings account, 22% would pay with their credit cards.