Automotive: Car-related purchases are common type of emergency expense, survey finds
- InsightTrendsWorld
- May 8
- 7 min read
Why Is This Topic Trending?
Rising Cost of Car Maintenance: As vehicles age and repair costs increase, many consumers are forced to make unplanned, high-cost purchases.
Car Dependency: In the U.S., especially in suburban and rural areas, people rely heavily on personal vehicles, making car issues an immediate priority.
Widening Financial Insecurity: A large segment of consumers lacks the savings to absorb emergency expenses—auto-related or otherwise—without significant financial stress.
Shift in Payment Behavior: Increased usage of BNPL and credit for emergencies highlights both the affordability gap and consumer adaptation.
Generational Divide in Risk Perception: Millennials and Gen Z are significantly more concerned about emergency expenses, indicating long-term economic anxiety.
Retail Strategy Disruption: Auto parts and accessories are now both the top emergency and impulse purchase category—reshaping how retailers should approach essential goods.
Overview
A PYMNTS Intelligence & Splitit survey of 7,078 U.S. consumers (Jan–Feb 2025) found that 43% of emergency purchases over $250 were auto parts and accessories, making this the most common emergency expense. The median cost for these auto-related emergencies was $573.53. The study also revealed generational and income-based disparities in financial preparedness and rising interest in installment-based payment models.
Detailed Findings
Emergency purchases >$250:
Auto parts/accessories: 43%
Home repairs: 34%
Appliances: 19%
Groceries: 17%
Clothing: 10%
Impulse purchases >$250:
Auto parts/accessories: 37%
Median spend on emergency auto items: $573.53
Payment Methods:
Cash: 43%
Credit card: 33%
BNPL: 8.9%
Emergency expense concern:
Very/extremely concerned: 27%
Somewhat: 26%
Slightly/not: 47%
By Age (Very/Extremely Concerned):
Gen Z: 31%
Millennials: 32%
Bridge Millennials: 31%
Gen X: 29%
Boomers: 19%
By Income (Very/Extremely Concerned):
< $50K: 38%
$50K–$100K: 26%
$100K: 21%
Key Takeaway
Auto-related emergencies have become the most frequent unexpected expense, spotlighting consumer financial fragility and the urgent need for flexible payment solutions.
Main Trend
Trend Name: “Emergency Essentialism”
Consumers are increasingly facing urgent, high-cost, essential expenses—especially for vehicles—without having the financial safety nets to absorb them. This drives changes in how they prioritize spending, finance purchases, and perceive value.
Description of the Trend
“Emergency Essentialism” reflects the rising tension between essential needs (like car maintenance) and financial unpreparedness. Auto-related issues—formerly planned, scheduled, or preventative—now occur as high-pressure, emergency events, often resolved with credit or installment plans.
Consumer Motivation
Necessity: Vehicles are crucial for daily routines (commuting, caregiving, groceries).
Urgency: Delayed car repairs can risk safety and mobility.
Risk Minimization: Consumers want to avoid larger future costs by fixing issues promptly.
Security-Seeking: Peace of mind through warranties, service plans, or deferred payment.
What Is Driving the Trend?
Inflation and rising repair costs
Aging vehicle fleets due to delayed new car purchases
Lack of emergency savings among middle- and lower-income consumers
Consumer shift toward installment payments and alternative credit tools
Financial insecurity among Millennials and Gen Z
Motivation Beyond the Trend
Consumers feel economically vulnerable and are turning to tools that offer control, like warranties or payment plans.
There's a mental and emotional comfort in preemptively mitigating risk (e.g., F&I protection).
The desire to “transact smarter” leads to demand for bundled protection and financing solutions.
Description of Consumers
Age: Primarily Gen Z, Millennials, and Bridge Millennials
Gender: Not specified, but auto reliance spans genders
Income:
Most concern: <$50K
Middle tier ($50K–$100K): moderately concerned
Even >$100K show 44% concern
Lifestyle: Working professionals, commuters, parents, car owners with aging vehicles, often living paycheck-to-paycheck or without emergency savings.
Conclusions
Car-related emergency costs have become a major stressor across consumer segments. The shift toward installment-based solutions and risk transfer (e.g., insurance, warranties) reflects a broader trend of financial defense strategies among modern consumers.
Implications
For Brands
Need to bundle warranties, services, and protection plans
Offer installment payments or BNPL at point-of-sale
Market through urgency + risk management lens
For Society
Reveals the depth of financial fragility, even among the middle class
Dependency on personal vehicles persists despite urbanization narratives
Emphasizes lack of accessible public transportation or community support structures
For Consumers
Greater psychological burden when faced with essential unplanned costs
Increasing reliance on credit, leading to potential long-term debt
Need for proactive financial planning and risk protection
Implication for Future
Emergency-related spending will likely reshape consumer financing norms, encouraging businesses to create financially inclusive solutions for essential goods and services—especially auto-related ones.
Consumer Trend
Name: “Protection-First Purchasing”
Consumers are placing greater value on products that offer peace of mind, whether via warranties, extended services, or the ability to pay over time.
Consumer Sub Trend
Name: “High-Stakes Necessities”
Essential goods (cars, appliances, home maintenance) are becoming emotionally and financially charged purchases—leading to higher urgency and impulsivity in spending decisions.
Big Social Trend
Name: “Middle-Class Financial Fragility”
Even income earners over $100K are concerned about unexpected bills. The illusion of financial stability among the middle class is eroding, creating new norms in consumer behavior.
Worldwide Social Trend
Name: “Cost of Essential Mobility”
Globally, the cost of maintaining or owning a vehicle is rising, making mobility a financial stressor—impacting job access, family responsibilities, and mental health.
Social Drive
Name: “Preventative Financial Engineering”
Consumers increasingly seek risk-transfer products (warranties, insurance, BNPL) to avoid sudden large payments. This fuels a culture of proactive defense mechanisms in purchasing.
Learnings for Brands to Use in 2025
Introduce subscription models for auto services, maintenance, and protection
Integrate BNPL or low-interest installment plans at point-of-sale
Bundle F&I offerings with clear value communication (no upsell pressure)
Use messaging that acknowledges financial stress and offers solutions
Educate consumers on how your product reduces risk and improves life continuity
Strategy Recommendations for Brands to Follow in 2025
Create emergency-specific product lines (e.g., fast-repair kits, express services)
Segment your consumers by income + concern levels to tailor financing options
Collaborate with BNPL providers for seamless checkout experiences
Train F&I staff to emphasize risk-mitigation, not upselling
Leverage urgency-based digital marketing focused on value protection, not price
Final Sentence (Key Concept)
Emergency Essentialism is transforming how consumers prioritize, finance, and emotionally respond to essential purchases—turning auto-related expenses into a flashpoint for broader economic anxiety.
What Brands & Companies Should Do in 2025 and How to Do It
Develop tiered emergency response bundles for different income levels (basic repair plan to premium warranty)
Partner with fintechs and BNPL solutions to allow seamless auto-service financing
Build trust-based messaging around risk reduction and financial empowerment
Offer loyalty incentives for ongoing vehicle health (discounts for routine check-ups, early warning diagnostics)
Educate through storytelling—highlight real stories of risk averted or life disruptions prevented through your solution
Final Note
Core Trend
Emergency Essentialism: A rise in unexpected essential expenses is reshaping consumer behavior, especially around mobility and financial planning.
Core Strategy
Risk Transfer Enablement: Brands must position their offerings as tools for minimizing life disruption and financial uncertainty.
Core Industry Trend
Embedded Financial Solutions in Retail: The line between product and payment service is blurring, with consumers expecting financing options integrated into their purchase path.
Core Consumer Motivation
Control Through Flexibility: Consumers seek tools that offer immediate relief, payment flexibility, and peace of mind to manage unexpected financial shocks.
Final Conclusion
As financial stress becomes the norm, especially around car-related emergencies, brands must evolve to serve a consumer who values protection, flexibility, and control—not just product features, but life continuity.
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Core Trend Detailed
Trend Name: Emergency Essentialism
Description
Emergency Essentialism reflects the rising incidence of urgent, high-cost, non-discretionary purchases—especially related to car maintenance—among financially vulnerable consumers. As daily life becomes more dependent on critical tools like personal vehicles, even minor breakdowns can turn into financial emergencies. This shift forces consumers to reprioritize spending, embrace risk-transfer products, and increasingly rely on flexible financing.
Key Characteristics of the Trend (Summary)
Essential purchases are now emergency-driven: Consumers delay maintenance until it's urgent, turning routine needs into high-stakes moments.
Emotional urgency fuels impulsivity: Auto problems evoke anxiety, leading to quick, sometimes impulsive spending behavior.
Consumer finances are unprepared: Most Americans lack emergency savings to cover essential, sudden costs.
Protection-focused decision-making: Consumers are drawn to products that minimize disruption (e.g., warranties, insurance, BNPL).
Installment-based payments gain ground: Consumers seek flexibility through BNPL and other short-term credit tools.
Market and Cultural Signals Supporting the Trend (Summary)
Rising repair costs due to inflation and parts shortages
Aging vehicles: Average U.S. car age now exceeds 12 years, increasing breakdown frequency
Mainstreaming of BNPL in retail and service sectors
Decline in emergency savings across income groups
Cultural shift toward de-risking everyday life via subscriptions and protection plans
Increased generational anxiety about financial resilience (especially among Gen Z and Millennials)
How the Trend Is Changing Consumer Behavior (Summary)
Spending is reactionary, not proactive: Repairs happen when urgent, not as preventative maintenance
Greater reliance on credit/BNPL for essentials, not just lifestyle items
Impulse now includes essentials: What used to be planned purchases are now driven by immediacy and stress
Heightened value placed on protection: Warranties, F&I, and bundled services are gaining traction
Price sensitivity is overtaken by value-of-protection narratives in marketing effectiveness
Implications Across the Ecosystem
For Brands and CPGs
Develop bundled offerings that package products with protection (warranty, service, finance).
Embed installment payment options at checkout for higher-ticket essentials.
Use messaging that emphasizes life continuity, not luxury.
For Retailers
Enable real-time financing through BNPL or zero-interest plans.
Train staff to position essential goods as risk reducers, not upsells.
Create tiered service plans to meet different income levels.
For Consumers
Shift in budgeting toward risk coverage, even for smaller ticket items.
Greater openness to alternative financing as a financial safety valve.
Purchasing decisions are increasingly driven by fear of disruption, not just value or need.
Strategic Forecast
Over the next 12–24 months:
BNPL and F&I services will expand into essential goods sectors (auto parts, home repair, health).
Consumers will prioritize “protected” purchases—where breakdowns or loss are covered by a plan.
Retailers and brands that frame themselves as safety nets will earn deeper loyalty.
Emotional marketing around “never be stranded again” or “your safety is covered” will outperform discount-driven messaging.
Final Thought
As consumers face mounting uncertainty, Emergency Essentialism is driving a profound behavioral shift—transforming the way people prioritize, finance, and emotionally respond to essential purchases. Brands that understand this shift and deliver protection, flexibility, and peace of mind will emerge as indispensable.
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