Even if you’re a very careful owner, you will likely have to maintain your car from time to time, repairing or replacing some parts. Sometimes such costs can come as an emergency, and if you don’t have money saved up specially for this occasion, taking out a loan might be the only way to cover the expenses.
Where Can You Get Funds for Car Repairs
There are four major options when it comes to getting funds for a car maintenance:
- Take out a personal loan. This is the best option if you have a good credit history. APRs are up to 36%, and you have a wide choice of lenders that can give you the funds in a couple of days. In case you need to borrow up to $1,000 and you’re a member of a credit union, you may also take out a payday alternative loan. Rates go up to 28% and the terms can be as long as six months. If your credit history has suffered, try Bad Credit Loans in Maine. Maybe there you’ll find a good alternative for yourself.
- Use a credit card if you have one with an open credit limit. The interest on such a transaction will most likely be lower than a payday loan near me interest.
- Check to see if your mechanic of choice is partnered with a lender. Some do offer financing one way or another, that can be later used to pay for various repairs or maintenance. The downside of this option is that it’s more expensive than going through a bank or credit union.
- Get a short-term (payday, installment or auto title) loan. This is especially helpful if you have less than perfect credit and need money fast. This, however, is the most expensive option of all, as APRs on such loans can top 300%. Budget carefully, check all of the lenders and consider all the possible alternatives so as to not get into a cycle of debt.
Are There Restrictions On What Can I Use a Car Repair Loan For?
There’s virtually anything car maintenance-related you can use your funds for. The examples of expenses to cover are:
- a blown transmission, that can cost you $4,000 and more;
- head gasket repairs might be worth somewhere between $1,000 and $2,000;
- camshaft replacement usually costs from $1,000 to $3,000;
- fuel injector repairs tend to be around $1,000;
- getting a second pair of car keys can take hundreds of dollars from your budget.
Make sure to compare the prices from a couple of different mechanics. Quality of service and cost vary greatly, so make sure you’re getting the most for your money.
Before Taking Out a Loan
Prior to borrowing any amount of money, consider other alternatives like:
- turning to local charities, non-profits, and government agencies for help with groceries and utilities;
- asking your providers for an extension of the payment deadline;
- getting a side job, an additional project or shift at work, or asking for early payment or raise.
These ways are much safer, and you won’t get trapped into a vicious cycle of debt that makes people borrow again and again just to cover previous loans sucking more funds out of their budgets. If your credit score has already taken a hit – visit Bad Credit Loans in Virginia to help yourself get out of the rut.
Should I Opt for Repairs or Buy a New Car?
There are cases when it’s more practical to just buy a new vehicle instead of putting money towards repairs. Below are a couple of questions you should ask yourself to decide:
- Is your vehicle worth more than the repairs? If not – it’s a sign that you need a new one.
- Are you still making payments on your car? If that’s so – paying for repairs is still easier than for two cars.
- How much money do you need? If the amount isn’t too be, you’ll likely afford repairs.
- Can you take the time to buy a new vehicle? Sometimes even a couple of days is crucial and it’s faster to get your old car into shape than waste time shopping around for a new one.
- Can your car be repaired at all? There are cases when you won’t have much choice.
If after honestly answering the above questions you decide that you need repairs, read on to discover ways to actually save on this procedure. The cost-lowering techniques include:
- knowing the estimated cost at different mechanics and picking the best deal;
- using your car insurance to the fullest, if yours cover such costs are repair. You still will most likely pay for parts and cover, but with insurance, the amount of money needed will be much smaller;
- aking about discounts. Some shops may offer price-reducing options, for example, on refurbished parts;
- negotiating with a mechanic to work out a payment plan that is beneficial to you;
- hiring a teacher from the technical or vocational school, or, alternatively, a trainee. The latter might want to have a chance to practice, and the former might use your case to give a lesson;
borrowing from friends and family.
Whichever method and shop you choose, stick with the mechanic you’ve picked. This relationship is very important because if you’re a loyal customer you might enjoy better deals and service down the road.
An emergency car repair can put a huge strain on your budget. Don’t be too nervous though, as there are always ways to get the funds you need. Look for different options, compare them, calculate your budget well, and you’ll be good.
Also, check:Get Started Now!
Please vote for the article: