The average cost of an oil change varies depending on where you live. The type of oil used is another factor, with varieties including conventional, synthetic, and semi-synthetic. For basic service with conventional oil and no extra quarts, you can count on paying between $35 and $75, according to Kelley Blue Book.
We’ll discuss the ins and outs of oil changes, including how often you should get it done, the benefits to your vehicle and the environment, and how to save money on your next oil change.
How Much Does an Oil Change Cost on Average?
The cost of an oil change depends on several things:
• Vehicle’s year, make, and model
• DIY vs. service station
• Geographic location
• Service provider
• Type of oil: conventional, synthetic, or synthetic blend
• Add-on services like filter changes and tire rotation
You’ll pay about $35 for basic service with no extra quarts. Top service with extra quarts will run about $75. This is likely to be with conventional oil.
With semi-synthetic oil, the average cost will be higher: $40-$100. And with fully synthetic oil, the price inches up to $65-$125. Some luxury vehicles require special filters, which can cost $260 or more.
The average cost of an oil change at a dealership is generally around $100; this typically includes a filter change. Another popular add-on is tire rotation, which can tack on $20-$50. It’s possible that a dealership or auto repair shop will offer a small discount for more than one service.
In case you were wondering, oil changes are not covered by car insurance because they’re considered a regular part of car maintenance. Learn more in our Insurance Tips for First-time Drivers. 💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.
Average Cost of Oil Change by Provider
The table below lists the price of the cheapest oil change option at a number of national service providers. Differences in price are often due to the quality of oil used, and the speed and scope of the service.
Service Provider
Lowest-Price Oil Change Service
Firestone
$24.99
Goodyear
$18.95
Jiffy Lube
$29.99
Midas
$33.99
NTB
$24.99
Pennzoil
$25.98
Pep Boys
$24.99
Sears
$19.99
Valvoline
$39.99
Walmart
$19.88
Data courtesy of CarServiceCosts.com
Recommended: How to Lower Your Car Insurance
The Difference Between Synthetic and Conventional Oil
Conventional oil is crude oil that’s been refined, while synthetic is made from chemical compounds. Synthetic oil has fewer impurities and is designed to protect car engines.
Conventional oil needs changing more often and can have problems flowing in extreme temperatures. Synthetic oil can be used for longer periods and flows in a wider range of temperatures. Although there are clear advantages to synthetic oil, there’s one disadvantage: It costs more.
Check your owner’s manual to see what type and grade are recommended for your vehicle’s engine. How much your car is worth may factor into your choice of which oil to use.
How Often Should You Get an Oil Change?
Your owner’s manual should also list how often to change the oil in your specific vehicle. In general, conventional motor oil needs to be changed after about 5,000 miles of driving. Synthetic oil can go as long as 10,000 miles. If you use semi-synthetic motor oil (a blend of the two), you may get 8,000 miles of usage before it needs to be changed.
Did you know you should also be evaluating your insurance on a regular basis? Annual personal insurance planning sessions can help your coverage keep up with important life changes.
Benefits of Getting Your Oil Changed
The benefits of regular oil changes are significant. They include:
• Cleaner engine. When you change the oil, you’re also getting rid of the dirt, debris, and contaminants in the old oil.
• More efficient engine. When the engine is clean and the oil is new, the engine has better lubrication and works more efficiently. This helps boost performance and maximizes the life of the engine.
• Better gas mileage. A more efficient engine will help your car get better gas mileage and save you money on fuel.
• Environmental benefits. When oil stays in your vehicle for too long, it starts to degrade. At this point, it releases potentially toxic hydrocarbons.
• Prevents overheating. Engine components generate heat, especially when you’re driving at faster speeds. When the engine is freshly and appropriately lubricated with motor oil, this lowers friction and reduces the risk of overheating.
How to Lower the Cost of Oil Changes
As noted above, timely oil changes can reduce fuel costs. To save money on oil changes, you can shop around for the best prices in auto shops or do it yourself. Before your first DIY oil change, you may need to invest in a few supplies. These include a wrench to remove the drain plug (your owner’s manual should list what size and type), an oil filter wrench, an oil pan, latex gloves, and perhaps a jack.
You can save $25 to $75 per oil change on average, depending on the oil and filter you use. So, once you’ve saved enough to “pay back” what you invested in the right tools, you can enjoy savings each time you change your own oil. Check out more tips for saving on car maintenance costs. 💡 Quick Tip: If your car is paid off and worth only a few thousand dollars, consider updating your car insurance: You might choose to opt out of collision coverage and double down on liability.
The Takeaway
The average cost of a basic oil change with conventional oil is $35, but you can find low-cost oil changes for as little as $19. Higher prices may indicate a better quality of oil, add-ons like filter replacement, or faster service. Your vehicle’s owner manual will recommend a type and grade of oil. Conventional oil is typically cheapest, followed by semi-synthetic, and then fully synthetic. Synthetic oils allow you to go longer between oil changes — 10,000 miles compared to 5,000 with conventional. To save the most money on your oil change, don’t be afraid to DIY.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
Is $100 a lot for an oil change?
It depends on where you live, the type of oil used, your vehicle, and add-ons such as filter changes and tire rotation. The average cost of a basic oil change is $35, with prices as low as $19. Ask your service provider for a breakdown of what goes into that $100 oil change.
Should I get my tires rotated when I get an oil change?
Consumer Reports recommends rotating your tires every 5,000-8,000 miles. Tires protect you on the road, so this maintenance task shouldn’t be overlooked. Depending on the kind of oil you use and your owner manual’s recommendation, you may want to have your oil changed every 5,000-10,000 miles. If you can combine your oil change schedule with your tire rotation schedule, you might save a bit of money.
How much do oil changes cost in 2024?
The overall average with conventional oil and no other services provided is somewhere about $35. No-frills service with conventional oil starts at $19. You’ll pay for more synthetic oil and add-ons like filter replacement.
Photo credit: iStock/Phynart Studio
Insurance not available in all states. Experian is a registered service mark of Experian Personal Insurance Agency, Inc. Social Finance, Inc. (“SoFi”) is compensated by Experian for each customer who purchases a policy through Experian from the site.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Who is Bill Rhodes? Rhodes has extensive experience as a corporate executive as he previously served as the president and CEO of AutoZone for 18 years, contributing to the firm’s expansion of stores as well as increasing its revenue and enhancing its online presence and services. Prior to that role, Rhodes led store operations as … [Read more…]
Inside: Learn how much to effectively patch a tire. Get insights on DIY or professional tire repair to make an informed decision.
You walk outside ready to drive away- only to quickly realize a nail has punctured your tire! This is so incredibly frustrating.
This summer it happened to me not once, but twice!
Not only does it pose a potential safety risk owing to reduced fuel efficiency and poor handling, but it can also substantially disrupt your day by necessitating an unexpected trip to the tire repair shop.
From my experience, you can learn how much patching a tire costs.
What is Tire Patching?
Patching a tire involves repairing a puncture in the tread area of the tire. A patch, typically a rubber material, is installed on the inside of the tire after the puncture has been located and repaired.
This tire plug repair method is used to seal the puncture, preventing the tire from losing air, and extending the life of the tire significantly. Patching tires is a cost-effective solution that helps vehicle owners maintain their tires without burning a hole in their pocket.
Quick Answer
Patching a tire DIY can cost as little as $6 if you have most of the tools, but having the job done at an auto repair shop, which includes labor time and professional expertise, ranges from $20-$40.
You can patch a tire for free if you go to the company that installed your tires.
Common Causes for Tire Damage
Tires suffer damage due to a variety of reasons. One of the primary culprits is road hazards, such as nails, screws, or shards of glass leading to punctures – a scenario that can cause a slow leak or even a sudden blowout if the object creates a large hole.
Bumps in the road, severe weather conditions, improper storage, or simple wear and tear due to age can also result in tire damage. Moreover, tire bead issues, where the bead that holds the tire to the wheel’s rim slips and becomes damaged due to improper inflation, can also give rise to serious issues affecting the car’s ride, handling, and safety.
Regular visual checks of your tires can help spot signs of imminent damage like cuts, punctures, cracks, or bulges.
Why Patch a Tire? Potential Risks of Ignoring Tire Damage
Ignoring tire damage can lead to serious repercussions. A damaged tire can drastically affect the performance and handling of your vehicle, compromising ride comfort and fuel efficiency.
The most immediate danger, however, is the increased likelihood of a tire blowout. I have been there – remember the Ford Explorer tire issues?1 I was on the highway and thankfully was able to stop safely thanks to another driver who slowed down so my SUV could hobble to the side and roll to a stop safely. The severity of this situation cannot be emphasized enough.
This can happen when driving on a severely damaged or worn tire (or tire malfunction) – a situation that can lead to a serious accident. Additionally, driving with damaged tires can cause uneven wear and tear on other tires, possibly increasing your maintenance costs in the long run. Remember, while the cost of a new tire may seem steep, it’s a worthy investment in your safety.
How to Diagnose a Damaged Tire
Step #1: Finding the Leak
Locating a leak in a tire involves a careful and systematic process. First and foremost, mechanics use their senses to determine the origin of the leak. They inflate the tire to make it easier to find leaks because the air tends to escape more prominently from them or use a bubble solution. Next, they visually inspect the tire for any cuts, holes, or objects sticking out, like nails or screws.
Aside from a visual inspection, mechanics also listen for a distinctive hissing sound – a clear indication of escaping air. If the leak isn’t immediately visible or audible, a soapy water test can be performed. This involves mixing water and dish soap in a spray bottle, inflating the tire, and spraying the solution over it. Bubbles will begin to form where the air escapes, clearly identifying the location of the leak.
Step #2: Checking the Extent of the Puncture
Determining the extent of a puncture is crucial in detecting whether a patch repair will suffice or if a tire replacement is needed. A mechanic will typically measure the size of the puncture; if the wound is larger than 1/4 inch in diameter, a patch may not effectively seal the tire.
The mechanic will also check the location of the puncture. Punctures close to or on the sidewall are usually non-repairable, primarily because the flexing of the sidewall could cause repaired areas to break open. The structure of the tire could also be compromised, making it unfit for a patch.
Any internal damage, such as severe abrasions, penetrations, or bruising, can not be repaired. Certain punctures made by large, sharp objects, or those resulting from a high-speed impact, may also leave the tire beyond repair.
Further, tires that have already undergone a certain number of repairs should not be patched again, as they risk losing their essential strength, leading to possible tire failure while driving.
How long can I drive with a nail in my tire?
When you find a nail in your tire, your immediate concern is often: how far can I continue to drive? Though there’s no definitive answer, driving with a nail in your tire isn’t advised. The nail can cause the tire to lose air slowly over time, negatively impacting the vehicle’s fuel efficiency and handling, and even leading to a tire blowout.
While it might be possible to drive for a few miles, or even a few days in some cases (depending on the nail’s size, location, and the tire’s condition), you should address the situation as soon as you notice it to prevent further deterioration.
The safest course of action is to drive slowly and carefully to the nearest tire repair shop. Do not attempt to remove the nail yourself as that could potentially worsen the damage and make the tire irreparable.
Remember, safety should be a driver’s primary concern, not the inconvenience of a tire repair.
Can Your Tire Be Patched?
Factors Determining Patch-ability
When determining whether a tire can be patched, several factors come into play. Here are a few key elements that determine the patch-ability of a tire:
Location of the Puncture: Tires can only be patched if the damage is confined to the tread area. Punctures in the shoulder or sidewall are not patchable due to the immense pressure these areas bear while driving.
Size of the Puncture: The size of the puncture greatly affects whether a tire can be patched. Generally, punctures up to 1/4 inch in diameter can be repaired, but anything larger than that cannot.
Number of Punctures: A tire with multiple punctures may not be patchable. Each case is unique, and a professional should evaluate the tire to determine if and how it can be repaired.
Angle of the Puncture: The angle of the puncture also plays a role. If the angle is strange or the puncture goes in sideways, patching may not be the best solution.
Overall Condition of the Tires: If the tire has already endured a patch near the current hole, or the sidewalls have serious damage or bulging, a patch may not suffice and a tire replacement could be needed. Also, if the tread depth is already at or beyond the wear bars, even a simple puncture can mean the end of the tire’s useful life.
Remember, always bring your tire to a professional for evaluation and repair. Proper inspection and repair are vital to ensuring the continued safety and performance of your tires.
When Not To Patch
It’s important to understand that not all tire damages can or should be patched. There are situations where patching a tire is not advisable or safe. These situations include:
A Puncture at an Odd Angle: If the hole is at a strange or awkward angle, a patch may not seal the hole effectively, leading to air loss.
Severe Sidewall Damage: A tire’s sidewall is a critical part of its construction, and if severely damaged, patching would not be able to restore its structural integrity.
Bulges or Bubbles in the Rubber: Bulges or bubbles indicate structural failure within the layers of the tire. Since these faults are on the inside, a patch cannot rectify the problem.
A Patch Near the Current Puncture: If your tire has already been patched near the current hole, applying another patch might compromise the integrity of the tire and its ability to carry load reliably.
Multiple Issues at Once: Your tire might be experiencing a second issue along with the puncture, like unbalanced wear, tread separation, or other structural failings. In such a case, it would be safer and more economical to replace it.
Always remember, when in doubt about whether to patch or not, consult a professional tire technician to ensure the safety and longevity of your tires.
Cost Breakdown of Tire Patching
Free With Purchase of Tires
One of the most advantageous aspects of maintaining your tires is that they can actually be free of charge at the location where you bought your tires.
For instance, if you’ve bought your tires and had them installed at Costco, you are entitled to free flat tire patching. This service comes as an extension of their commitment to customers, and their affordable prices make them a thrifty option to consider.
Discount Tire is another prominent name when it comes to economical and quality services. You can get your tire inspected for free here, and if a tire patch is the solution, they will repair your tire without charging you a penny if you bought those tires with them.
This service goes a long way in saving their customers’ hard-earned money and reinforces their reputation as a budget-friendly grandstand in the automotive industry.
Tire Repair Shop
A substantial part of the tire repair cost at a tire repair shop is majorly attributed to the mechanic’s labor charges. While a tire patch job takes approximately 15 minutes, the cost of shop overhead costs is the biggest expense.
You can expect to pay between $20-$40 for this service. While traveling, we paid $25 to fix a nail in the tire.
However, just remember, that you are paying for the mechanic’s expertise, and time dedicated to the repair which primarily constitutes the cost.
At Home Repair Costs
Materials you’ll need are a tire patch kit, a pair of pliers, a car jack, a lug wrench, soapy water, and a spray bottle. Optionally, a tire marker can be useful.
The retail value of these tire repair materials can range around $6. The pricier items would be if you have the supplies to jack up the car or proper wrenches.
Many people who drive beater cars have become good and maintain their car to lower their costs.
Other potential expenditures
Apart from the primary costs of labor and materials, there may be other expenditures while patching a tire. One such possible fee is the cost of tire rebalancing. When tires have been removed and replaced or repaired, they should be rebalanced to ensure smooth and optimal vehicle performance. This service might add around $100 to your overall bill.
Moreover, in some cases, there could be a tire disposal fee. Suppose, after inspection, the professional deems your tire beyond repair and it needs to be replaced, the old tire has to be discarded properly. Many shops handle this disposal but might charge a small fee (usually around $2-$5) for the service.
DIY Process of Tire Patching – How to Patch a Tire at Home
If you choose to do it yourself, here are the steps to take.
Removing and Dismounting the Tire
Remove the Tire from the Vehicle: To remove the tire from the vehicle, first, you’ll need to loosen the lug nuts with a wrench while the vehicle is on the ground. Once they’re loosened, raise the car with a jack. Now you can fully remove the lug nuts and pull the wheel from the vehicle.
Release the Air: With the tire removed, you need to let the air out by removing the valve stem core with a special removal tool. This will lead to a complete release of tire pressure.
Break the Bead: Breaking the bead, which refers to the seal between the tire and the wheel rim, is the next step. This can be done with a tire spoon and a hammer. The bead must be broken on both sides before the tire can come off the rim.
Remove the Tire from the Rim: This is done using levers or specialized tire removing tools. You must carefully insert the tools and lever the tire off the rim.
Remember, while the dismounting process might seem easy, it requires careful attention and certain specialized tools. It’s advised to have a tire repair professional handle this job to ensure safety and precision.
Applying the Tire Patch
Once the tire has been removed and dismounted, the next step involves the application of the tire patch. This process is as follows:
Preparation of the Area: The area around the puncture inside the tire is prepped by cleaning and roughening up a bit. This cleaning is essential to ensure the patch will adhere securely. The punctured area should be buffed with a grinding stone or sanding tool strong enough to bring the inner liner to a velvet-like finish.
Clean Dust and Debris: Using an air blow gun, all dust and debris need to be cleaned from the tire, especially those left by the buffing process.
Applying the Patch: An adhesive cement needs to be applied to the prepped area before the patch. Once the cement has dried to a tacky touch, the patch is applied. The patch, on its sticky side, has to be applied towards the interior side of the tire at the punctured spot.
Rolling the Patch: After the patch has been placed, a roller is used over it to remove any possible air bubbles trapped between the patch and the liner. This is important for ensuring optimum adhesion.
Apply Sealant: A sealant is applied around the edges of the tire patch to further secure it and to ensure that no air can escape from around the patch.
Each patch needs a different type of cement and a different style of application. Thoroughly read and follow the manufacturer’s instructions while applying the specific patch.
Remember, if you don’t feel comfortable doing this process yourself, a professional can easily and quickly do it for you.
Reinstalling the Patched Tire
After the patched tire has been given sufficient time to dry and cure, it’s ready to be reinstalled. Here’s how it’s done:
Mount the Tire: Using a tire-changing machine, mount the tire back onto the wheel rim. Ensure the valve stem is pulled through its hole in the rim, and the bead of the tire is properly seated.
Inflate the Tire: Next, inflate the tire to the appropriate air pressure – typically, the recommended pressure is indicated on a placard on the vehicle’s door edge, doorpost, glove box, or fuel door.
Rebalance the Tire: The process of patching may have unbalanced the tire. So, it’s prudent to have the tire checked for balance. This is done using a balancing machine that spins the wheel and tire.
Reattach the Tire: Reattach the wheel with the patched tire onto the vehicle. Apply even pressure while screwing the lug nuts back on in a star pattern for even distribution of the load. Lastly, using a torque wrench, securely tighten the lug nuts to the manufacturer’s recommended torque.
Drive the Vehicle: Initially, carry out a test drive at a slow speed to make sure the repair was successful. Listen for strange noises and feel for abrupt shaking. If all seems well, resume your regular driving.
Remember that even though patching a tire may seem simple, it requires specialized tools, time, and expertise. If you don’t have the proper tools, it may be more cost-effective and reliable to have the tire patched by a professional.
Tips to Maintain your Tires and Avoid Frequent Patches
Tip #1 – Regular Checks and Balancing
Routine tire checks and balancing can go a long way in prolonging your tires’ life and reducing the need for patches.
Regular checks help you identify and address minor issues like lower tire pressures, slow leaks, or tire damages early before they worsen into more significant problems. Make it a point to visually inspect your tires at least once a month and before long trips.
Balancing your tires is equally crucial – an imbalanced tire can cause vibrations, uneven tire wear, and strain on the car’s suspension. It is recommended to have your tires balanced every 12,000 miles, or when the car has issues with steering wheel vibrations.
Tip #2 – Timely Tire Rotations
Another critical preventive maintenance task to prolong the life of your tires is timely tire rotations. Rotating your tires can help achieve more uniform tire tread wear, which extends their lifespan and improves your vehicle’s performance.
Typically, tires should be rotated every 5,000 to 8,000 miles or as specified by your vehicle’s manufacturer. During the rotation, tires are moved from one position on the vehicle to another – for example, the front tires to the rear and vice versa.
Since front tires often wear out quicker than rear tires due to weight distribution and turning forces, this rotation helps evenly distribute the wear across all tires. Regular rotations not just prolong your tire lifespan but also improve gas mileage, provide an improved ride experience, and mean you’re less likely to experience sudden tire failure.
I just add this task to my digital planner with how many miles were on the car when the tires were rotated.
Tip #3 – Proper Inflation and Pressure Maintenance
Maintaining correct tire pressure is a crucial aspect of tire care that can drastically improve your vehicle’s performance, fuel efficiency, and tire longevity. Both over inflation and underinflation pose risks to the safety and wear of your tires.
Underinflated tires can lead to poor fuel efficiency, reduced handling, and increased tire wear.
Overinflated tires, on the other hand, can make your vehicle more susceptible to impact damage. You should check your tire pressure at least once a month and before long trips.
Thankfully, many of the newer vehicles will have this in your dash to monitor. The old-fashioned way is to use a reliable tire pressure gauge and refer to your vehicle’s manual or the placard on the driver’s side door post for the correct pressure.
Frequently Asked Questions
The longevity of a tire patch significantly varies depending upon the quality of the patch, the skill of the person who installed the patch, and the driving conditions. Generally, a tire patch can last between 7 to 10 years if installed correctly. However, just like any repair, a tire patch’s lifespan can also be influenced by factors such as the size of the puncture, driving habits, and road conditions.
Regular inspection and maintenance can help in timely detection of any issues, maintaining your tire’s performance and your safety on the road.
Yes, under appropriate circumstances, it is absolutely safe to drive on a patched tire. In fact, a properly patched tire is safe to drive on indefinitely, as the repair is considered permanent.
Remember, when it comes to any doubt about the safety or performance of a patched tire, it’s best to consult with a tire professional.
The answer to whether a tire with more than one puncture can be repaired is – it depends. Generally, it is possible to repair a tire with more than one puncture as long as the punctures are at least 16 inches apart. This distance is necessary to maintain the integrity of the tire structure without risking a tire failure due to stress concentration in one area.
However, if there are more than two punctures, or if the punctures are closer than permitted, the tire may need to be replaced. Multiple punctures can compromise the tire’s structural integrity, increasing the risk of a blowout.
Regardless, every situation is unique, and whether a tire can be patched, and how, should always best be determined by a professional. Understanding and respecting the potential risks associated with patching a tire with more than one puncture is vital to ensure safety on the road.
Isn’t Patching a Tire Fun?
Don’t forget to use your spare tire if the pressure cannot be maintained in the tire.
Indeed, patching a tire may seem an intriguing and rewarding experience, especially for those with a knack for DIY activities. However, even when it looks like an easy fix, tire patching involves meticulous examination, skill, and a proper understanding of safety measures.
Your tires are your vehicle’s sole point of contact with the road, and their health directly impacts your vehicle’s performance and your safety. So whether you’re patching a tire using a tire repair kit at home or taking it to a professional, it’s essential to ensure the job is executed correctly.
Remember, that car is an asset!
When it comes to tires, no quick fixes are worth risking your safety. Here are better ways to start saving money.
Source
Wikipedia. “Firestone and Ford tire controversy.” https://en.wikipedia.org/wiki/Firestone_and_Ford_tire_controversy. Accessed January 9, 2024.
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Cars are integral to our daily lives: We drive them to and from work and school. We use them to get groceries and go to the doctor. And, when our budget allows, we use them to get out of the house and treat ourselves to an evening of fun.
But what happens when your car breaks down and you don’t have the money saved up to fix it? That’s a reality for more than half of Americans, according to Bankrate’s 2023 Emergency Savings Report, an annual survey done in partnership with the survey and market research firm SSRS. Almost 60% of Americans say they wouldn’t use cash from emergency savings to pay for an unexpected car repair. Instead, they’d turn to credit cards, friends and family, or personal loans.
Using personal loans for car repairs can be a good solution when you don’t have the cash on hand, and it may be more affordable than paying with a high-interest credit card. Below, we’ll explore the pros and cons of using personal loans for car repair as well as some alternative options.
What Personal Loans Are and How They Work
A personal loan is a loan from a financial institution that borrowers can use for a wide range of purposes, from weddings and vacations to debt consolidation and medical costs to home renovations and, yes, car repairs. You’ll repay your personal loan, plus interest, over a set number of months.
As you start to explore your options, it helps to understand how personal loans work and the different types of personal loans available.
Pros and Cons of Personal Loans for Car Repairs
Taking out a personal loan to cover the cost of car repair can be helpful, but are there drawbacks to consider? Let’s review the pros and cons:
Pros
Cons
Get fast funding to cover repairs
Increased debt
Prioritize your family’s safety on the road
Upfront fees
Ensure you can still drive to and from work to generate income
Temporary drop in credit score
Avoid high-interest credit card debt to cover repairs
Less room in monthly budget
Pros
• Get fast funding to cover repairs: Many personal loans offer same- or next-day funding, which means you can pay for car repairs quickly and get back on the road.
• Prioritize your family’s safety on the road: Without access to cash, some drivers may be tempted to forego necessary repairs and put themselves, their families, and other drivers in danger by driving with a damaged vehicle. A personal loan allows you to pay for damage now at a potentially lower cost before the issue grows and becomes more expensive to fix.
• Ensure you can still drive to and from work to generate income: Despite the advent of remote working, many people still rely on their vehicle to get to and from their job. Without it, you’ll need to pay for rideshare or a car rental or depend on the kindness of a coworker to give you a lift. Otherwise, you may need to skip work and miss out on that pay. Repairing your car quickly with a personal loan helps ensure you can get yourself to and from work on time.
• Avoid high-interest credit card debt to cover repairs: Many Americans reach for their credit card to cover the cost of emergency car repair. According to Bankrate’s 2023 survey, 25% of respondents said they’d swipe their card to pay for repairs. The problem? More than a third of Americans have more credit card debt than emergency savings — and such debt can be hard to overcome when you don’t have funds set aside for unexpected expenses.
Cons
• Increased debt: The biggest drawback of taking out a personal loan is the increased debt. Sometimes debt is necessary, like taking out a mortgage to buy a home or getting a student loan to pay for college. However, if it’s possible to avoid debt for small expenses like car repair, you typically should. That said, fixed-rate personal loans may be a more manageable form of debt for borrowers than a variable-rate credit card.
• Upfront fees: Many personal loans come with origination fees at the start, especially for borrowers without great credit. These fees, plus the interest on the loan, mean you’ll end up spending much more for the car repair than you would if you paid out of pocket.
• Temporary drop in credit score: While many lenders allow you to prequalify for a personal loan without an impact on your credit score, there will be a hard inquiry on your credit report when you officially apply. Such hard inquiries temporarily lower your credit score, but don’t worry: Your score will likely rebound over time, and if you responsibly manage your personal loan, you may even see it grow higher than when you started.
• Less room in monthly budget: When you take out a personal loan, you’ll have fixed payments for a set number of years. It’s crucial that you make these payments every month and on time. That means you’ll have a little less room in your budget until it’s paid off. If you’re living paycheck to paycheck or struggling to build your emergency savings, this tighter budget can be problematic.
Recommended: What Are Daily Simple Interest Loans?
How to Use a Personal Loan for Auto Repairs
Personal loans are straightforward. Aside from a few restrictions that vary by lender, you can use personal loans for almost anything. You’ll apply and, upon approval, have the funds deposited in your checking account. Then you can take that money and pay the mechanic directly to repair your car.
Applying for a Personal Loan
So how do you get a personal loan for car repairs? First, make sure you meet a lender’s requirements, and then you can go through the application process.
Requirements
These are the typical personal loan requirements you’ll need to meet to get approval:
• Credit score: Each lender will have its own personal loan credit score requirements. If you have bad credit, don’t sweat it: There are lenders out there with personal loans for poor-credit borrowers. Just expect to pay higher fees and interest.
• Collateral: Many personal loans are unsecured, meaning you don’t have to put up any collateral. However, if you are struggling with your credit score, you may have an easier time getting approved (and at a lower rate) if you’re willing to put up collateral, such as your car.
• Proof of income and employment: Lenders want to know that you have a means of repaying the loan. To that end, you may need to prove that you’re employed — and that you make enough to cover the monthly payment.
• Debt-to-income ratio: Lenders commonly analyze your debt-to-income (DTI) ratio, which compares your monthly debt payments vs. the amount of money you make in a month. The lower the ratio, the more likely you are to be approved.
• Origination fee: Some personal loans may include an origination fee to be paid up front, often expressed as a percentage of the loan amount (somewhere between 1% and 10%). You may be able to pay this out of pocket, but often lenders roll it into the loan’s total cost or even deduct it from the loan amount you receive.
Recommended: Compare Personal Loan Rates and Terms
Application Process
When you’re ready, you can apply online, over the phone, or in person (it’ll vary by lender). You’ll usually hear back about approval quickly — and may even receive the loan funds on the same day.
Many lenders let you check your personal loan rates and eligibility online before you apply. There’s no hard credit inquiry for this, so it’s a nice way to see if you qualify and compare lenders.
Alternatives to Personal Loans for Auto Repairs
The ideal alternative to getting a personal loan to fix a car is paying with cash from your emergency fund. But if you don’t have an emergency fund — or don’t have enough saved up yet — paying with credit is your main option.
Personal loans are a top option, but there are some alternatives to personal loans for auto repairs:
Credit Cards
Many mechanics will let you pay for auto repair with a credit card. This can be an attractive option if you have a rewards credit card that pays cash back.
The problem is that many borrowers have variable-rate credit cards with high APRs. If you don’t pay off the debt quickly, the interest charges will start to rack up.
Title Loans
Title loans allow you to use your car as collateral to secure funding. It’s a common option for bad-credit borrowers who can’t afford car repair, but be cautious: These loans are short-term, and if you don’t repay yours, the lender will take your vehicle from you.
This is a last-resort loan. For most borrowers, there’s likely a better, safer option.
Payday Loans
Payday loans are convenient for borrowers who need cash now, because there’s usually no credit check or collateral, and you can get the money right away.
The catch? These predatory loans can have high fees and interest rates reaching more than 600%. When it’s time to repay the loan (your next payday), you might find that you can’t afford to repay it — and you’ll have to take out a bigger loan to pay off the first one.
If you’re thinking about a payday loan for car repair, it’s a good idea to reconsider. Payday loans can lead to mounting debt and bankruptcy. And even if you pay yours off, it typically won’t help build your credit score (most lenders don’t report on-time payments to credit bureaus).
Instead, you might want to consider other alternatives, like secured personal loans or even a loan from friends and family. 💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
The Takeaway
Personal loans for car repairs may be a smart option when you don’t have the cash on hand. With a personal loan, you can get fast funding to pay for the repairs within a day or two, and the small available loan amounts mean you don’t have to borrow more than you need. There are some alternatives to personal loans for auto repairs, including credit cards. However, if you’re unable to pay off what you owe quickly, the interest charges will begin to pile up.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
FAQ
Can personal loans be used for car repairs?
Yes, you can use personal loans for car repairs. In fact, unexpected emergencies such as car repairs are a very common use case for personal loans. You can use personal loans for almost anything.
What sorts of financing can you get for a vehicle repair?
Drivers who can’t afford vehicle repair with their own emergency savings can consider a number of financing options, including personal loans and credit cards.
While title loans and payday loans are alternatives, they’re generally a risky solution that could lead to car repossession, major debt, or even bankruptcy. Similarly, some mechanics may offer their own financing, but Consumer Reports warns that these loans can be predatory, with interest rates up to 189%.
Is getting a personal loan to repair a car a good idea?
If you can’t afford to repair your car out of pocket, a personal loan can be a good idea. Personal loans may have lower rates than a credit card, and making on-time payments on your loan could even help boost your credit score.
And if the alternative is not fixing your car, you’ll either have to drive an unsafe, damaged vehicle or get around without an automobile — which can be inconvenient and lead to lost wages if you miss work.
Photo credit: iStock/demaerre
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The cost of owning a car is significant, and maintaining it can be pricey too. But it’s what keeps your wheels running, whether that means commuting to work, doing school drop-off, shopping, road tripping, and beyond.
You’ll likely deal with lots of expenses, such as oil changes, new tires, shock and spark plug replacement, and more as you navigate car ownership.
Here, learn how you can save big on the typical services most cars need so you can hold onto more of your hard-earned cash.
How to Lower the Cost of Owning a Car
What follows are 31 ways to make vehicle maintenance less expensive. Some of these strategies help you save money right away, while others can lead to serious savings down the road.
1. Buying the Right Car
One of the best opportunities you have to lower your maintenance costs comes before you actually buy the car.
If you’re looking to buy a new car–or for a good deal on a used car–it can be wise to not only consider the purchase price, but also the long-term costs. With a little bit of research, you can likely find out the model’s repair record, and the average annual cost of upkeep.
Recommended: How to Save Up for a Car
2. Keeping Up With Oil Changes
It’s inconvenient and, with synthetic oil and filter changes running around $65 to $125 a pop, the money you may not feel like spending. But this regular expense will almost certainly save you money in the long run. Oil lubricates your engine and keeps it from overheating. And, replacing the whole engine will definitely cost a whole lot more.
3. Reading Your Owner’s Manual
Unless you’re a serious car geek, you probably haven’t spent a lot of time perusing your owner’s manual. But this guide contains key information about what maintenance services need to be done and when making it essential reading. (If you’ve misplaced yours, you can probably find it online — just search for your car’s make, model, year, and the words “owner’s manual.”)
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4. Timing Your Maintenance Properly
The maintenance schedule set out in the owner’s manual was created by your car’s designers to help you keep ahead of major repairs that would pop up if you didn’t intervene. Skipping preventative maintenance can be penny-wise, but pound-foolish.
5. Knowing Fair Maintenance Prices
Charges for car maintenance services, like tune-ups and tire rotations, can vary widely depending on the shop. One way to find out if you’re being charged fairly is to research rates before you bring the car in. Websites like RepairPal can tell you what you should expect to pay for a particular maintenance task — and can even connect you with certified shops.
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6. Patronizing a Mom-and-Pop Mechanic
Want a way to save money daily? Think small. Independent mechanics can sometimes offer lower pricing (and potentially better customer service) than auto repair chains, which have to cover the cost of being part of a franchise. So it can be worth shopping around. Exception: If your car is still under warranty at the dealership, you might void the agreement by taking it anywhere else, so it may be best to stick with them.
7. Sticking With the Same Shop
Although it might not matter for minor maintenance issues like oil changes, bigger services can be costly — and if you continually take your car to new mechanics, they won’t know your vehicle’s service history, which could lead you to pay for the same service twice.
💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!
8. Getting Your Transmission Fluid Changed
Transmission fluid is as vital to your transmission as oil is to your engine. This fluid is a lubricant that helps keep all of the moving parts inside of your transmission functioning properly. Transmission work can be some of the priciest projects you can face, running anywhere from $800 for a repair to a couple thousand or more for a rebuild to $4,000 to $7,000 for a replacement.
9. Getting Your Coolant Fluid Flushed
Yet another important fluid to keep an eye on, your coolant protects your engine from overheating, as well as offering more lubrication for certain engine parts. It usually needs to be changed out every 10,000 to 50,000 miles (you can find out in your manual), and failing to do so can lead to rust and dirt clogging up the system.
10. Cleaning Your Battery
You may not think about your battery very much…until the morning your car doesn’t start. To keep your battery in good working order, and avoid surprises, it can be good to occasionally clean the corrosion off the terminals using a small brush, some water, and baking soda.
11. Keeping Up With Your Transfer Case Fluid
This one only applies to those with four-wheel drive vehicles — but if you have one of those, you’ll likely need to familiarize yourself with the transfer case. That’s the part that shifts power from the transmission to the axles so the wheels can turn. And, like other parts, it has its own special lubricating fluid which needs to be regularly checked and changed.
12. Getting your Tires Rotated Regularly
You’ve probably already noticed how expensive tires are to replace — so chances are, you want to replace them as seldom as possible. Getting your tires regularly rotated and balanced can help ensure they wear evenly, which extends their overall longevity. This can be an especially good thing to do before you take an affordable road trip.
13. Carrying an Air Pressure Gauge
DIY moves can not only enhance your self-confidence, they can also be ways to save dollars and improve your money mindset.
One example: Maintaining optimum air pressure in your tires can improve your mileage (and save you money in gas) and also extend the life of those expensive tires. It also keeps your vehicle safe to drive. You can check your tires free of charge by keeping a tire gauge (typically less than $10) in your glove box.
14. Refilling Your Tires as Needed
As you roll around on them, your tires will gradually seep air over time — but you usually don’t need to schedule a special maintenance trip to refill them. Most gas stations offer coin-operated air pumps, and many even allow you to pre-set the proper PSI, or pounds per square inch. (Otherwise, you can grab your pressure gauge.)
15. Regularly Checking Your Alignment
Alignment controls the angle at which your tires meet the road, and is important for making sure your tires wear evenly. Proper alignment also helps increase your vehicle’s gas efficiency, so it’s worth getting it checked at least once yearly, or sooner if you notice a pull as you’re driving.
16. Inspecting Your Shocks and Struts
Your shocks and struts, which keep your car from bouncing, also impact how quickly your tires wear, as well as your vehicle’s fuel efficiency. Depending on your driving habits, these generally need to be replaced roughly every 50,000 to 75,000, depending on how heavy your use is.
17. Shopping Around for Tires
No matter how assiduous you are maintaining your tires, you’re eventually going to have to replace them. But unlike other car parts that may be proprietary to your car’s make and model, tires are pretty easy to shop for yourself — and doing so can lead to major savings. Warehouse discount or wholesale clubs like Costco and Sam’s Club sell tires, as do online retailers like Discount Tire Direct.
18. Using Winter Tires Only in the Winter
Using winter tires can make driving in snowy conditions much safer. But these tires wear considerably faster than all-season tires, especially in non-winter conditions. So it can be a good idea to change your tires back to all-weathers as soon as the last frost has thawed.
19. Skipping the Winterization Package
Many mechanics will offer you a “winterization” service that involves flushing and replacing your coolant (also called antifreeze). However, you only need to have that done every 30,000 miles or so, as noted above. If it hasn’t been that long since your coolant has been replaced, you don’t need this service.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt, so try to eliminate that ASAP.
20. Having Your Spark Plugs Inspected
Spark plugs literally spark the fuel that runs your engine. When the spark plugs start to fail, your engine won’t run as efficiently, and eventually, their misfiring could put stress on your catalytic converter, which is costly to repair. Check your owner’s manual for advice on how often spark plugs should be replaced. The number can vary widely, from 18,000 to 100,000 miles. When the time comes, however, it can be wise not to hesitate.
21. Changing Your Own Engine Air Filter
In most cases, paying a professional to do your maintenance and repair work is worthwhile in the long run (and less costly than making a mistake and hiring someone to repair it). But changing your engine air filter is actually easy. Since that filter keeps dirt and debris out of your engine, keeping it clean is key to your car’s longevity. There are plenty of YouTube tutorials you can check out to learn how.
22. Keeping Jumper Cables in the Trunk
This might not seem entirely necessary, but if your battery dies and you’re not near home, you’ll likely be glad you didn’t have to rely on a tow truck for such a simple problem.
23. Making Sure You Have Roadside Assistance
…That said, every once in a while, you might need a tow. If you do, having access to a roadside assistance program can be major cost savings. And, it can pay to shop around for this service. AAA might offer perks, like hotel discounts, but the roadside assistance package offered by your car insurance company might cost less.
24. Heading to the Car Wash
It may seem like a minor detail, but keeping your car’s exterior clean can help the paint job last longer by removing road grime and residues that can eat through the finish. A $10 drive-through wash is way better than paying up to 10 times that for a new paint job.
25. Detailing the Interior
Your car’s interior is also vulnerable to staining and residue build-up that can lower your car’s overall value. At many car washes, you can access a powerful vacuum that can get rid of loose debris, but giving your car’s interior more thorough attention every few months may help you resell it for a higher price later.
26. Waxing Your Vehicle Every Six Months
Waxing your vehicle twice a year is another important way to help keep the paint job looking fresh and new. It can also help to avoid rust build-up that can cause structural damage to the body of your car.
27. Changing Your Own Light Bulbs
For most bulbs on your car, changing them isn’t difficult. They typically have a twist-and-pull bayonet base or simply pull out and push in. You can usually find replacement bulbs in any auto parts store, and sometimes even hardware stores. In some cases, accessing a bulb can be tricky, so you may want to check the manual or look online if getting the bulb out isn’t obvious.
28. Paying Attention to Recalls
If your car’s manufacturer sends out a notice about a recall, it’s likely worth making an appointment at your local dealership — no matter how insignificant the problem may seem. The recall repair will be free at the dealership, and it could save you from more extensive damage that would not be covered.
29. Buying Some Touch-Up Paint
Just like washing and waxing, using touch-up paint can be a smart maintenance measure. With a little bit of touch-up paint, you can seal chips and cracks early on before they have a chance to become a real (and real expensive) problem like rust or paint decay.
30. Heeding the Check Engine Light
It may be annoying, but your check engine light is trying to tell you that something needs your attention. And, typically, it’s better to pay attention sooner rather than later. A small repair cost now is better than a large one later on if you let that light go for a few months.
31. Driving Less
The less you drive, the less wear-and-tear you put on your vehicle, and the lower your maintenance and repair costs are likely to be. While it’s hard to save money these days, when it’s possible, you may want to consider walking, biking, or carpooling. These moves can not only be wallet-friendly but also good for the environment.
Recommended: 7 Ways to Save Money on Commuting to Work
The Takeaway
Generally speaking, the best way to keep your car maintenance costs low is to keep up with maintenance in the first place. That means referring to your manual and following the recommended service schedule.
You can also save money on car ownership by doing some basic vehicle care yourself, such as keeping your car clean and inflating your tires properly, as well as shopping around for a mechanic who charges fair prices.
To make sure you have enough money to cover all the expenses of car ownership, it can be a good idea to set up a car fund, which is easy to do with a dedicated bank account.
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SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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It’s almost time for Dodger baseball. You’re rolling west along Sunset Boulevard, visions of Mookie Betts and Clayton Kershaw and Julio Urías happily dancing through your mind.
You’re one block from turning onto Vin Scully Avenue and into Dodger Stadium when you notice a black billboard, looming ominously above an auto repair shop called Fernando’s Tires. The billboard features this name, in bright white letters: Frank McCourt.
That guy?
Yes, that guy, the one who traded two Boston parking lots and what one of his attorneys said was “not a penny” of his own cash for ownership of the Dodgers. Yes, the one who dragged the storied team into bankruptcy amid Major League Baseball allegations he had “looted” $189 million from team revenues for personal use. And, yes, the one who laughed all the way to the bank, selling the Dodgers for a billion-dollar profit in 2012.
He did not, however, sell the parking lots that surround the stadium. In 2018, he pitched a gondola that would transport fans from Union Station to Dodger Stadium.
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Five years later, the proposal is still alive, now shepherded by an environmental organization delighted at the prospect of the gondola taking cars off the streets and keeping pollutants out of the air. That Sunset Boulevard billboard and others like it are brought to you by opponents of the gondola, taking aim at the project in part by relentlessly associating it with McCourt.
The Dodgers are guaranteed to play 81 games at Dodger Stadium every year, with playoff games traditionally added in October and concert dates sprinkled throughout the year. That leaves skeptics within the community to wonder why McCourt would promote a gondola ride to a stadium parking lot that would be empty three out of every four days during the year.
Unless, of course, the lot would not be empty.
McCourt’s company, now known as McCourt Global, highlights this slogan: “Building for tomorrow.” McCourt did not sell the Dodger Stadium parking lots because he anticipated building something there, some day.
What might that be? And is the gondola intended to carry us to that day?
The pursuit of those answers took me to Dodger Stadium, to City Hall and to a meeting of MLB owners. First, however, I stopped at a weathered red brick building in the Arts District, an old furniture and fabric warehouse reimagined as a laboratory for energy innovation.
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Three colorful banners greeted visitors, one with the hue of a bright blue sky. “Welcome,” that banner read, “to the Cleantech Future of Power and Water.”
The interior comes alive with vibrancy and urgency, and with work on dozens of concepts. Any one of them, building managers say, could emerge as “the next big idea to fight climate change.”
The Dodger Stadium gondola represents such an idea, according to its proponents. Climate Resolve, a nonprofit based in that building, agreed to take the reins from McCourt in leading the project.
“From my perspective,” said Climate Resolve founder and executive director Jonathan Parfrey, “to have a gondola transporting people from Union Station to Dodger Stadium, and to have that exciting, beautiful conveyance identified as a climate action?
“It changes the way people approach public transit. So it was very attractive to us.”
With baseball’s new hurry-up rules, you could miss half the game if you get stuck in Dodger Stadium’s oft-snarled traffic and get to your seat an hour after the first pitch.
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The gondola alternative: get to Union Station, hop aboard a spacious cabin that could arrive every 23 seconds, soar high above the city, and arrive at Dodger Stadium in seven minutes.
The climate benefit is easy to envision: fewer fans in cars powered by gasoline; more fans in gondolas powered by electricity.
A promotional video for the proposed Dodger Stadium gondola project released by Los Angeles Aerial Rapid Transit.
The climate downside is easy to envision too: massive development at Dodger Stadium, with neighborhood disruption for years of construction, and with cars converging upon the stadium every day, not just on game days.
“I’m involved in this project,” Parfrey said, “and I brought my organization into this project, predicated on there not being development on that land.”
Not now, or not ever?
“Not for the foreseeable future,” he said.
Parfrey said he had been given “assurances” that the gondola was not a first step toward Dodger Stadium development. I asked who had given him those assurances, or who I could ask to get those same assurances.
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“Ask Frank,” he said.
Near Lot G at Dodger Stadium, along the long slog from the outer reaches of the parking lots to a stadium entrance behind left field, a colorful model of a gondola cabin awaits you. You can step inside the 24-seat cabin, then imagine a ride that would allow you to skip traffic to the ballpark and instead, as the signage reads: “GET THERE BY AIR.”
You can even find a helpful decal, showing you where to stand to take a picture with the gondola cabin in the foreground and the stadium in the background.
The display of a model cabin takes a page from the playbook for pitching a new stadium or arena. Models and renderings can excite fans, but they also can obscure a critical question about any big project: Looks cool, but who is going to pay for this?
The cost of building the gondola was estimated at $300 million in 2020 and is expected to rise by the time a financing plan is finalized, said David Grannis of Point C Partners, a transportation and land use consultancy working with Climate Resolve.
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The McCourt entity that originated the gondola concept, LA Aerial Rapid Transit, has agreed to fund the approval process, including environmental studies and permit applications, project spokesman Nathan Click said. It is up to Climate Resolve to figure out how to pay for construction, as well as for annual operating costs Grannis estimated at between $5 million and $10 million.
The gondola won’t make money, at least not under the current plan of free rides for fans with a Dodgers ticket and neighborhood residents with a Metro pass.
Parfrey said taxpayers would not be asked to subsidize the gondola.
The hundreds of millions would come from private financing, Grannis said, and largely from sponsorships and the purchase of naming rights.
In 2012, the airline Emirates agreed to pay about $60 million for a 10-year sponsorship of a London gondola — then called the Emirates Air Line — that carried riders above the River Thames and cost $96 million. The current one-way adult fare on the London gondola is $7.50.
“In this case,” Grannis said, “you have a venue that happens to be the best attended in Major League Baseball, and therefore the iconic nature of this cabin flying to Dodger Stadium and taking you there is going to attract a lot of sponsors, a lot of people who want naming rights or sponsorship.
“That’s the big revenue.”
Jeff Marks, the founder and chief executive of Innovative Partnerships Group, brokers naming rights and sponsorship deals between companies and teams, leagues and venues. He said it “could be doable” to cover the cost of building and operating the gondola through corporate sponsorships, but he said even the most generous sponsor might not be willing to strike a nine-figure deal without exposure beyond simply slapping the company’s name on the side of the gondola.
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Marks, speaking generally because he is not involved in the project, said a title sponsor might also want a benefit such as the company name on the field. A hypothetical example: Verizon Field at Dodger Stadium. The Dodgers have hired firms to solicit corporate offers for naming rights to the field and patches on the team jerseys.
Or, Marks said, a primary sponsor might prefer naming rights to whatever development might rise atop the parking lots: Take the Verizon Gondola to the Verizon Village at Dodger Stadium!
Rick Caruso, the developer behind the Grove and Americana shopping and entertainment centers, pursued the Dodgers when McCourt put them up for sale. Caruso commissioned studies on how to improve the notorious congestion for cars getting into and out of the Dodger Stadium parking lots.
Without control of the lots, however, Caruso believed he might not have been able to implement any changes. McCourt insisted he would not sell the lots, and Caruso withdrew from the bidding.
Guggenheim Baseball Management, the winning bidder, took a different approach. Guggenheim, led by Mark Walter and Stan Kasten, bought the Dodgers and their stadium from McCourt. In a separate transaction, a Guggenheim entity formed a joint venture with a McCourt entity to control the parking lots.
In land use documents filed by the joint venture in 2012 and intended to “facilitate the orderly development” of the Dodger Stadium parking lots, the potential property uses cited include homes, offices, restaurants, shops, entertainment venues, medical and academic buildings, a separate sports facility and a hotel and exhibit hall.
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“It is an ill-conceived concept that the highest and best use of Chavez Ravine is 260 acres for parking,” an attorney for McCourt, Tony Natsis, said at the time. “I consider that to be an ill-conceived notion for the owner of the parking lots and the owner of the stadium.”
Walter, the Dodgers’ chairman and controlling owner, said McCourt cannot develop anything on the property without Guggenheim’s consent. What might Walter be thinking in terms of development now?
“I haven’t been thinking about it at all,” Walter said.
Kasten, the Dodgers’ president and chief executive, said the Dodgers support the gondola project but are “really not involved” in it. Walter had a simple explanation for why the Dodgers would back a project that would chew up a chunk of the parking lots in the stadium.
“Hopefully, it will make it easier for people to get there,” he said.
Of the 18,889 parking spaces at the stadium, the gondola station at Dodger Stadium would result in the loss of 194 spaces, according to the environmental impact report for the project.
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To the Dodgers, that would not be a big deal. But this might be: The report projects 10,000 people would ride the gondola to each game by 2042, which could translate to a loss of about 20% of parking revenue.
Kasten called those figures “hypotheticals that I don’t have an answer for,” and project opponents dismissed the ridership projections as unrealistically high, citing a UCLA study.
But a person familiar with the Dodgers’ business model, speaking on condition of anonymity so as not to jeopardize his professional relationships, said the team likely would not agree to give up millions in annual parking fees without some way to recoup that money.
“It does not make sense for the Dodgers to do it if they’re going to lose parking revenue,” the person said. “It does make sense if the gondola is serving a larger development.”
The California Endowment, a nonprofit with offices that would sit beneath the shadow of a 195-foot gondola tower, is leading and largely funding a coalition opposing the project. In court papers, the Endowment cited the Dodger Stadium development proposal McCourt unveiled when he owned the team and alleged the gondola would be “a loss leader for the future development of parking lots at Dodger Stadium.”
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What would Kasten say to Angelenos who would like to know whether the gondola comes first and development comes next?
“That’s a question you’ll have to address to someone else,” Kasten said.
To the people proposing the gondola?
“Yes,” Kasten said. “That’s where I would direct my questions.”
I had. And what had I been told? Ask Frank.
On April 9, 2021, for the first time in 32 years, the Dodgers raised a World Series championship banner. The Dodgers bestowed the honor of hoisting the treasured flag upon five people, including three of their own: Dodgers co-owners Magic Johnson and Billie Jean King, each decorated champions in their own right, and Hall of Fame broadcaster Jaime Jarrín.
The other two: Eric Garcetti, then the mayor of Los Angeles, and Gil Cedillo, then the city councilman representing the district that includes Dodger Stadium.
The Dodgers forged a strong working relationship with Cedillo. The team and nine of its senior executives combined to make $13,800 in campaign contributions to him from 2013 to ‘22, according to city records.
Cedillo lost his bid for re-election last year, defeated by community activist Eunisses Hernandez. Kasten and Hernandez each expressed a desire to work together for the benefit of the fans and the community.
Garcetti, who has backed the gondola from the time McCourt first pitched it five years ago, said the Dodgers never have hinted to him that mass development would be in the works at Dodger Stadium.
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“I think there is a vision of trying to make it less of a once- or twice-a-year kind of a place for a family, when you go to a game,” Garcetti said before he left office last December, “and more of an asset: the best view in L.A., a place for more special events, a place where baseball history can be celebrated.
“I think their core business is baseball, and they want to protect that.”
The environmental impact report does not contemplate development at Dodger Stadium. The report states “no housing units are proposed” as part of the project and “additional approvals requiring further environmental review would be necessary” for any development at the stadium or elsewhere along the gondola route.
For Hernandez, that language is not enough. The councilwoman said she has “a lot of concerns” about the gondola.
“I am not convinced that this is an effective solution to reducing vehicle congestion,” she said, “and I share the neighborhood’s concerns about displacement and disruption.”
Hernandez said she is not necessarily opposed to development at Dodger Stadium, provided affordable housing is a priority. She is opposed to considering the gondola on its own, without any consideration of whether development might follow and what it might involve.
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“I don’t think it’s appropriate to undertake such large-scale projects without a full and clear understanding of long-term plans,” Hernandez said. “This shouldn’t be piecemealed out, and I want to see additional development plans made clear.
“That is the honest approach, and that’s what will allow the community, the city, and all involved entities to make a clear-eyed decision.”
Steve Soboroff, who was the mayoral point man on the construction of Staples Center and later president of the Playa Vista development near LAX, worked briefly with McCourt in the final year of his Dodgers ownership.
Soboroff is not involved in the gondola project. He said the most effective way to build community support for the project would be to offer transparency about the long-term plan, even if the gondola would come first and any development would come later.
“That would be the path that I would choose,” Soboroff said.
It was time for me to do what Parfrey had suggested: Ask Frank.
The Dodgers have prospered without McCourt, and McCourt has prospered without the Dodgers.
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He bought the storied French soccer club Olympique de Marseille. He donated $200 million to what is now called the McCourt School of Public Policy at Georgetown University. He launched Project Liberty, an initiative to reform the Internet in the interest of serving “people, not platforms.”
As McCourt told Leaders Magazine: “Our technology today is great if you want to support autocracy, but it is not so great if you want to support individual rights and the freedoms and liberties assorted with democracy.”
McCourt still owns the Los Angeles Marathon, which starts at Dodger Stadium. During the past two months, as Urbanize LA reported, McCourt entities revealed plans to construct 502 apartments in three buildings on two sites along Stadium Way and another one block south, overlooking the 110 Freeway. The apartment buildings are planned regardless of whether the gondola is approved, said Brin Frazier, a spokeswoman for McCourt.
The applicant for the apartment projects is listed in city records as Jordan Lang, president of two McCourt entities: McCourt Partners Real Estate and Aerial Rapid Transit Technologies.
Lang’s company biography makes no mention of any experience in other transportation projects but touts his leadership in completing “millions of square feet of office, hotel, residential and mixed-use projects.”
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The prospect of developing such a large site on the outskirts of downtown is so rare that the city’s movers and shakers have floated concepts for decades. Caruso and I talked about some of them 18 years ago, long before McCourt put the team up for sale or Caruso ran unsuccessfully for mayor.
Peter O’Malley, the revered former Dodgers owner, proposed building an NFL stadium in the Dodger Stadium parking lot in 1995. McCourt revived the idea in 2005.
The other four MLB teams in California all have pursued mixed-use developments surrounding their ballparks. The Angels’ most recent proposal — since killed by the city of Anaheim amid a corruption scandal — would have included more than 5,000 homes on a site roughly half the size of the Dodger Stadium property.
“We need more housing,” Garcetti said. “We need it to be centrally located. We need it to be affordable. I think, if you meet those criteria, you can start a conversation with the city.”
Or, perhaps, development at Dodger Stadium could mean a selection of food halls, restaurants and bars, enticing enough to lure fans to arrive long before the game and stick around after it ends. That in itself could ease the neighborhood traffic bottlenecks on game days, gondola or no gondola.
Parfrey, who said his nonprofit agreed to take the lead on the gondola project based on what he said was a promise of no development on the land, said his organization would not support a ballpark neighborhood arising on the property but would support a plan to put a restaurant here and there within the parking lot.
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“We would go early and go to the restaurants,” Parfrey said.
Parfrey, remember, was the guy who told me to “ask Frank” about the “assurances” that the arrival of the gondola would not trigger development. I mentioned that to Frazier, McCourt’s spokeswoman, and asked if I could speak to him about that.
“Frank,” she said, “is not available.”
Watch L.A. Times Today at 7 p.m. on Spectrum News 1 on Channel 1 or live stream on the Spectrum News App. Palos Verdes Peninsula and Orange County viewers can watch on Cox Systems on channel 99.
Right before our Thanksgiving trip, the AC went out on our vehicle. $600 later, we had a functioning AC. What a way to start a camping trip.
The good news was that we had the funds set aside for that specific reason—auto repairs. We’ve never used one of our targeted accounts before, and now that we have, I can attest that they are a fantastic idea.
Obviously the repair would cost the same whether it came from a big account labeled “emergency fund” or a targeted one called “auto repair.” We’re out $600 either way, so why bother with separate, targeted accounts?
Two reasons:
By paying from a targeted account, the three-to-six months emergency fund (EF fund) isn’t tapped. We look at the EF as money for major or unforeseeable expenses only.
Paying for repairs is never a joy, but it’s easier when the money was there for that purpose.
It’s extremely easy to set up targeted EFs, and they’ll save you a great deal of frustration and headaches when faced with irregular expenses.
Step one: Calculate a reserve for targeted EFs Once you are free of consumer debt and have a comfortable EF, start creating targeted EFs for expenses that are inevitable, but irregular. For example, we have a savings account for property taxes. That’s a regular, yearly expense we can count on having to pay. We also have a good idea of exactly how much we’ll pay. A targeted EF is different because it’s meant for expenses that will hit at some point, but you don’t know exactly when or how much you’ll have to pay.
Here’s how to start creating your targeted EFs:
Gather your expense history for the last 12 months.
Calculate how much you spent on irregular expenses, such as car maintenance, medical bills, and home maintenance. You’re looking for expenses that you know you’ll have at some point, it’s just a matter of when.
Divide the sum for each category by 12.
Save those amounts each month to build up enough savings to handle the expense. Or, if you don’t have that much room in your budget, save up what you can in each category until you hit your reserve target.
Make sure you don’t confuse the purpose of your accounts. Saving for a car is not the same as saving for an auto repair for a vehicle you currently own. That said, try not to create too many targeted EFs. Make the categories broad, if needed. We only have two targeted EFs right now, and we’ll add a third for home maintenance next year.
Step two: Create sub-accounts My favorite method for targeted savings accounts is creating multiple accounts at ING Direct, which I learned about here at GRS. Other banks probably offer similar setups. As you set up each account, label it for its specific purpose.
Bonus points: Automate it Put your savings on autopilot to avoid the temptation to spend the money elsewhere. We started our auto repair savings account by setting up automatic deposits of $100 per month. In no time the account was big enough to cover our recent repair.
This is not a perfect method. Just because we only spent $600 on auto repairs this year doesn’t mean we won’t have a $1000 repair next year, but at least some money will be saved up to help cover the expense.
Peace of mind
One last benefit I want to mention is that when you’ve already predicted and accepted that you’ll have these irregular expenses, and you’ve set aside money for them, it is less aggravating when they occur. If we had to pull money from our three-to-six-month emergency fund, I would have started off our trip thinking about how quickly we could replace the funds, and where we could cut back to do it as soon as possible. Or worse, if we didn’t have any savings to cover the repairs, we’d be scrambling to figure out how to pay for it. Maybe we wouldn’t be able to go on the trip. Instead, I left feeling relieved that the money was there and a car repair didn’t blow our budget.
Peace of mind isn’t a tangible benefit, but to me, it was the best one of all.
Do you have separate accounts for irregular expenses, or do you have one big emergency fund?
J.D.’s note: As I write The Book, I’m amazed at how often I refer back to the idea of targeted emergency funds. I find them useful in Real Life, too. It’s so much less stressful to pull from your home-repair fund to fix a leaky roof than to drain your main emergency fund…
This article is by freelance writer Roger White and staff writer April Dykman. It originally appeared on Roger’s blog in a different format.
April
As many GRS readers know, last year I quit my job to become a full-time freelancer. The hardest thing about moving on was leaving coworkers like Roger White, a magazine editor and author of the funniest interoffice e-mails ever. Roger and I teamed up to bring you his story about a recent experience paying for an auto repair, along with tactical advice about how to dispute your mechanic bill.
Roger
Our little family was tooling along this year, struggling to stay within our monthly budget while juggling life’s big-ticket items—you know: braces, countless teenage daughter items, summer camp fees times number of children squared, etc., etc.—when the two most feared words in all of suburbia’s lexicon knocked us flat.
Car repair.
Funny thing is, it all started with just a broken brake light. I’m sitting in my wife’s car at a stop light, waiting to turn right, when a smiling woman pulls up next to me and says, “Hey, your right rear light is out. Better get it fixed, ’cause the cops will stop you for that.”
Instant adrenaline panic overdrive. The cops! Where?
Ever since I was a teenager, having a cop stop me for any reason has always struck fear deep in my heart, even when I was doing absolutely nothing wrong. Readers of a certain age will remember the CSNY lyric: “Like looking in my mirror and seeing a police car!”
So the wife and I promptly hightailed it over to our nearest franchise fix-it shop, thinking that a broken rear light costs, what, five bucks maybe?
Hah. The franchise fix-it shop guys saw us coming a mile away. I should have known. I can’t think of any other scenario where I feel so much like a life-sized walking all-day sucker than talking with the mechanic man. I’m thinking I’m not alone on this.
I believe that auto repair types begin sizing you up for the big squeeze the minute you walk in the door.
“Hello, sir, I see you and your wife have a Honda V6.”
“Uh, yes.”
“Does your model have the actuated re-inverter or self-regulating?”
“What?” Off guard, I blurt, “Actuated, I think. Really, we just need a brake light…”
“Uh oh. Actuated.”
(The other guy behind the counter sadly shakes his head at this point. The choreography is keen and well-executed, I must say.)
Still, I play along, because I don’t know enough about cars to bluff them, and they know that I don’t know. Furthermore, I know that they know I don’t know. You know?
Dang, I should have said self-regulating. We’re already off on the wrong foot.
“Well, it may be self-regulating, I’m not sure.”
“No, you said actuated.”
“Is that going to be a problem?” I ask.
“Depends. What are you in for?”
“Busted rear light.”
“Hmmmm.”
More head shaking. Some computer clacking, looking in reference manuals.
We left the car with the fix-it shop crew, said three quick Hail Marios to the Great Grease Gods, hoped and prayed for the best, and went about our day. I tried Googling “re-inverter,” but all I got was something about how to design a death-ray gun. When we got the call that the car was ready, we swallowed our gum, put on our all-day sucker heads, and made our way back to the garage. A different guy behind the counter gave us a bill that was a good 25% over the estimate. On the bill was a hefty item—I kid you not—that was labeled “service fee,” on top of labor, parts, tax, recycling charges, oil disposal fee, and all the rest.
My wife, always the braver of us, questioned this item, noting that the estimate was much less than the sum before us.
“This is way over what you said,” Sue said right out loud, turning all heads in the shop. I cringed. In a western movie, this was one of those moments where the piano player stopped playing and the saloon grew deathly silent. “What is this service charge?”
I expected another stern, condescending talking-to about how variable fluctuations in the world of auto parts derivatives combined with the situation in Libya, hourly swings in crude oil prices, and our particular vehicle’s unfortunate re-inverter configuration all coalesced in the time it took to repair our rear brake light to necessitate an additional service charge. But the guy looked at the bill, looked at my wife, and said, “Huh. Don’t know what that is. I’ll take it off.”
Booiiiinnng. That was the sound of my brain leaping out of my skull and bouncing on the floor. How many people, I wondered as I chased my brain across the floor, pay this “service charge” without a second thought?
April
Repairs are one of the costs that come with car ownership, but it sure is confusing when you don’t speak the lingo. When I go to the repair shop, I’m on the phone with my dad the whole time, repeating everything the mechanic says to my father, then repeating everything my dad says to the mechanic. I should just hand the mechanic my phone and cut myself out of the equation.
Like Roger, I probably wouldn’t dispute my bill, either. I know how anti-GRS that sounds, but I’m being honest. I hate making a scene, and I’m likely to assume it’s my own ignorance about cars that’s the problem, not the service charge.
Obviously, Sue is the one who’s got it right. If a charge looks wrong, you should ask about it. This doesn’t necessarily mean the shop is trying to cheat you — mechanics are human and they can make honest mistakes. How do you make sure you’re being billed fairly? I did some digging and found the following advice for those of us who aren’t so mechanically inclined:
Check to see if your car is under warranty. If it is, you’ll need to take it to the dealer or an authorized repair facility.
Find a good auto shop. Ask coworkers, friends, and neighbors where they take their vehicles for repairs. Is the shop affiliated with AAA or does it have technicians certified by the National Institute for Automotive Service Excellence (ASE)? Do you like the look of the place (clean, organized, etc.)?
Ask for a written estimate before the work starts. It’s not uncommon for the actual bill to be 10-20% higher, or more if the mechanic finds that the problem is more complicated.
Ask for the mechanic to review your bill with you. It might seem tedious, but it can save you money, as Roger found out. Mistakes happen all of the time. Compare the charges with your estimate.
If you have a bad feeling about the work performed, dispute your bill carefully. If you can’t find a resolution, ask for the old parts (should you need evidence) and take your dispute, in writing, through the chain of command. If necessary, you might turn to the Better Business Bureau or, as a last resort, legal action.
Finally, if you’re happy with the service you receive, become a regular, preferably at a local body shop. From Edmunds.com:
“The one-on-one relationship between driver and mechanic that smaller repair shops foster can really help consumers have confidence in both the work that’s performed and in the vehicle itself. Local mechanics are more willing to help you understand how your car performs and what it needs. You can ask to look under the hood or the chassis with your local mechanic, and perhaps learn something about what goes where or why a service needs to be performed.”
In other words, you might feel a little less clueless each time you bring in your car.
Sources: AA1Car, Florida Department of Agriculture and Consumer Services, Edmunds
Roger
Meanwhile, back at the franchise fix-it shop…
“By the way,” says the mechanic, “you need new struts. They’re bleeding onto your brakes. That’s about $600 without tax.”
Flush with new confidence instilled by wifey, I took my turn. “Oh, no you don’t. I know how you guys operate. Struts. No such thing as struts, I bet.”
I got some looks of approval from some of the other guy customers as we walked out of the shop. I think they were looks of approval, anyway. I had a bit of difficulty getting my all-day sucker-head in the car, but we drove away with a bit of salvaged pride. Struts, indeed.
“Hey, what’s that noise, hon?”
Readers, got any tips or stories of your own to share? Leave them in the comments!
Often, there are two camps of people when it comes to wrangling financial documents: Some keep everything, every ATM receipt, every bank statement, sometimes in a drawer or box with little to no organizing principle. Others throw away (hopefully after shredding) just about everything that arrives in the mail.
The best approach is likely somewhere in between. There is a happy medium. Here, you’ll learn how to keep just what you need, organize it well, and dispose of financial documents properly when they no longer serve a purpose.
The Importance of Financial Statements
“Out of sight, out of mind” is a cliche for a reason. Once taxes are filed, paychecks are deposited, and the rent or mortgage is paid, we tend to forget about these transactions, dumping the receipts in a deep file cabinet or throwing them away altogether.
However, the consequences of financial documents and bank statements stick around long after they’ve been settled. For example, the IRS can come calling years after a person files taxes if the organization suspects that income was misreported. Or, in the event of loss or damage, having a record of purchase for big-ticket items like electronics or jewelry can make it easier to file a claim.
Keeping track of financial statements can help serve as protection or proof if a transaction is challenged or misreported. Without the statement, people might spend days trying to obtain duplicate records, when they could have just had them neatly filed in the first place.
Not everything needs to be saved forever, but some things should be safely filed away for a rainy day.
Recommended: Do I Need a Personal Accountant?
What to Keep and For How Long
Like items in a grocery store, each type of financial document has its own expiration date. Some will be relevant years after they’ve been filed; others can be tossed within months. Here’s the general rule of thumb of how long a person should keep each statement:
Tax Documents: 6-7 Years
Keep tax documents — anything related to filing taxes — around for seven years. Why so long? The IRS can audit anyone up to three years after they file if the agency suspects that an error was made in “good faith,” aka an accident.
income tax return up to three years after the fact for a refund.
Additionally, the IRS has six years to follow up on returns if it thinks the filer underreported income substantially, meaning by 25% or more.
It’s not a bad idea to keep the tax return, in addition to supporting documents. That could include evidence of:
• Retirement plan contributions
• Charitable contributions
• Interest payments on a mortgage
• Alimony or child support payments
Record of Sales: 3 Years
From selling stock to selling a home, and every large sale in between, it could be smart to keep these records of sale for at least three years after the transaction takes place. These documents can be called up in tax-related issues.
Paycheck Stubs, Bills, Bank Statements, Investment Statements: 1 Year
If someone isn’t using direct deposit for payday, they should keep their physical paychecks for a year. Once they receive their W-2 and confirm that the amounts match, the stubs can go.
Utility bills, bank statements, and other bills should stick around for a year , just to be safe. Budgeters can use them to compare balances month over month. It also can be a helpful habit to check over bank and credit card statements each month. It’s a chance to catch and dispute fraudulent or incorrect charges. In addition, bills for services like medical treatment and auto repair should be kept for at least for a year for reference.
Investment statements that are distributed quarterly should be kept on hand until the annual statement is revealed and the numbers are lined up.
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Receipts, Resolved Credit Card Statements: Toss It
Unless purchases are logged manually, a person should feel comfortable tossing receipts almost as soon as they acquire them. As long as they don’t plan to return the item, all they should do is confirm the amount against the debit or credit card charge, then send that little slip to the trash.
credit card is paid in full each month, there’s not much reason to keep the statement lying around. Again, it can be used to check charged amounts and spot mistakes or fraud, but once statements are resolved against transactions, it should be okay to ditch the statement.
Although there are suggestions for how long people should keep a statement, at the end of the day, they should trust their gut. If there’s an urge to hold on to something not listed above, keep it.
Three Ways to Store Sensitive Documents
It won’t matter what a person saves and shreds if they don’t know where to find records in the long run. Safely storing sensitive financial documents doesn’t really mean tucking them away and forgetting about them. Here are a few ways to store and organize financial records:
• Use an old-school filing system. Finding an affordable, fire-safe file box to keep statements in is already a massive step up from the bottom of a junk drawer. Everyone will have their own approach to logical filing, but it could be done by year, type of record, or institution the record comes from.
Some might be tempted to go extra safe and take this paperwork to a safety deposit box at the bank. However, if the documentation is needed, it won’t do a person much good sitting miles away in a bank vault. Keeping it close and safe is probably preferable.
• Scan and save online. Many smartphones come with the capability to scan documents, and there are other well-reviewed scanning apps on the market. Those who tend to lose paper might choose to scan everything and save it online. The only hitch is keeping up with the scanning, and saving all documents to the cloud instead of just on the phone.
• Go paperless. Many institutions offer paper-free transactions, meaning customers don’t get statements in the mail. Online banks vs. traditional banks have made this a priority. Going paperless does not mean having to log on to each site to get financial information, but it does mean a person is less likely to lose papers.
Going paperless with financial statements may require a little more work to access records — people can’t just wait for documents to arrive in the mail. But if done correctly, they can find the papers they need with the click of a few buttons.
Recommended: Are Online Bank Accounts Safe?
The Takeaway
Going paperless with records doesn’t have to be tricky or time-consuming. That’s one of the benefits of opening an online bank account like SoFi Checking and Savings. It’s easy to find the information you are looking for online, as well as to track your spending and saving in one convenient place. What’s more, SoFi offers a competitive annual percentage yield (APY) and charges no account fees, which could help your money grow faster.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOBK0523022U
Save more, spend smarter, and make your money go further
While you can’t stop winter’s imminent arrival, there are preventative steps you can take to avoid an unexpected freeze to your cash flow. Mint sought out the experts for tips on how to protect your budget this winter.
Your Home
If you’re a homeowner, prevention is key to keeping maintenance costs low throughout the year—but especially in the winter. The best part is, you don’t have to have a knack for home improvement in order to stay vigilant about keeping home repair costs to a minimum.
Check your roof. If you are weary about climbing a ladder, you can get a feel for your roof’s condition from the ground with a pair of binoculars. Alyssa Hall of GAF, North America’s largest roofing manufacturer, recommends visually scanning your roof for any signs of sagging or uneven areas, which can indicate roof damage beneath the shingles. On the shingles, look for curling edges, those that are missing entirely, and any signs of damage caused by animals. If you have asphalt shingles or a slate roof, look for black areas, which indicate that a shingle is cracked or missing. If you spot problem areas, call a roofer to assess the situation before snowfall strikes. If problems are left to worsen, you could have a sagging or caving roof, water leaks, and water damage on your hands.
Clean gutter systems. Hall also advises clearing gutters of any leaves, branches and roots, so that melting snow and ice has a way to get off the roof. Water or snow left standing on the roof increases the odds of leaks and ice dams—which can quickly lead to major repair costs.
Seal windows. Richard Apfel, president of Skyline Windows says, “the average home uses 10 to 15 percent of its energy costs through improperly sealed windows.” Check for leaks by placing piece of paper in the window frame and then closing the window. If you can pull the piece of paper out without tearing it, you’ve got an air leak. You can try to seal the leak yourself with silicon-based caulking materials (available at your hardware store). If you still feel a draft after caulking, buy a clear plastic window film kit (also sold at hardware stores). They’re inexpensive, easy to install with the help of a hair dryer, and can save you major bucks on your heating bills. Apfel also says, “the plastic creates an insulating air pocket that can cut heat loss by 25 to 40 percent.”
Maintain water pipes. Roto-Rooter Plumbing and Drain Service‘s Larry Rothman advises homeowners to disconnect outside water hoses and repair dripping outside faucets before temperatures drop to freezing.
If you have interior shut-off valves that lead to outside faucets, drain the water from the pipes and close them for winter. Wrap heat tape (available at hardware stores) around pipes that are in unheated areas to minimize the potential for frozen pipes. If you leave for the winter months, set the furnace to no lower than 55 degrees.
Your Car
Maintenance and safety. Experts at PEAK Automotive Performance advise replacing wiper blades, and filling wiper and brake fluid, motor oil, and antifreeze before the winter. Check tire pressure regularly as temperatures get lower; you’ll lose a pound of pressure for every ten degrees that drops. (Your driver side doorjamb will tell you the advised pressure—also called “pounds per square inch” (PSI). Check your battery life, too—they can lose up to one-third of their starting power in the cold. (PEAK experts say that many auto service shops will check this for little to no cost).
If you live in an area that gets snow and ice, keep a bag of sand in your trunk. If you get stuck, spread the sand underneath your wheels to gain traction.
Your Safety
Fire prevention. Heating is a leading cause of residential fires during the winter. When compared to central heating, using space heaters increases the risk of fire by three to four times, according to Brett Brenner, President of the Electric Safety Foundation International (EFSI). Plug space heaters directly into a wall outlet and allow at least three feet of space between the heater and anything that can catch fire. Never place the heater on cabinets, tables, or furniture.
If you use a space heater in a bathroom, make sure that it is specifically designed for use in a damp area. When you leave a room or go to sleep, unplug the space heater.
Insurance. Review your homeowner’s, renter’s, and auto insurance policies to confirm that you have adequate levels of coverage before an accident happens. If you carry minimal amounts of coverage with a high deductible to save money on premiums, make sure that you have enough savings readily available to cover the deductible amount. Otherwise, you won’t be able to tap into your insurance coverage when you need it most. This is particularly true in the case of auto insurance. Remember that liability-only policies will help pay for damage you cause to other drivers—but won’t cover your auto repair costs.
Your Pets
Pets also face potential dangers in winter months and veterinary care can quickly erode your budget. Dr. Jules Benson of Petplan Pet Insurance reminds pet owners to remove snow, ice and salt from paws and the coat as soon as pets return indoors to prevent potential cuts and abrasions. (According to 2010 Petplan claims data, the average cost to tend to an injured paw is $200!)
Older pets and those with medical conditions can also experience exacerbated symptoms and joint pain in the winter months, so pay close attention to temperament changes. When applying rock salt to sidewalks and driveways, try to use a pet-friendly version and make sure animals do not ingest it. Besides the stress of a poisoned pet, Petplan data shows the average cost to treat it is around $500.
Stephanie Taylor Christensen is a former financial services marketer based in Columbus, OH. The founder of Wellness On Less, she also writes on small business, consumer interest, wellness, career and personal finance topics.
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