If you own a car, at some point you will have to repair it. That’s just how it is. Knowing this doesn’t make the situation any better, though, especially when you end up with unexpected breakdowns of your car.
The car repair cost can range from $400 to $4,000, and you can’t exactly leave your car like that without repair since you have to use it daily.
You won’t be able to go to work or drop your kids off at school so that really isn’t an option. So, what can you do? Well, the easiest option is to apply for different kinds of loans like payday loans which you could check here or opt for car repair loans to deal with. Let’s take a look at some of the options available to you with car repair loans.
Ways to Pay for Car Repairs
Do not overlook credit cards when you are paying for auto repairs. Let’s say you are stuck in a strange new place and you have to put your trust into a strange new repair shop, but it turns out the repair shop rips you off. You will be able to charge back your credit card and get your money back. Have you maxed out your credit card? If so, call the company and ask them to increase your limit. It often takes three days between you asking and them saying yes.
Payday loans are a good way to pay for auto repairs if you are using a mechanic you trust. Payday loans offer fast money, which is often what is most needed when your car breaks down. The expense may outweigh what you would normally expect to pay, but it is often the fastest way to have your car repaired quickly. The interest rates are high, but payday loans are often preferred to things like credit cards because credit card debt is often inescapable for some people. Payday loans may be expensive, but do not drop you into an inescapable sinkhole of debt the way that credit cards do.
Applying for a bank overdraft may seem like a long and arduous way to pay for your car repairs, but you may have a far better relationship with your bank than you think you do. If you already have a bank overdraft, but you have maxed it out, you should give your bank a call and ask them to increase your limit. There are many times when not only can you apply to extend your limit over the phone, but it is often extended that very day.
Another option is an auto repair loan.
What Are Auto Repair Loans?
Some lenders specifically let you borrow money for car repair. Whatever amount they’re willing to let you borrow is strictly limited to what you have to repair. Usually, a 30-day time period is given in which you have to give the money back. If you’re unable to do so, the lenders might repossess your car. So, while it’s an amazing option, it’s a scarily risky one.
On the other hand, you skip out on lots of hassles that would have otherwise come with personal and traditional loans. You also don’t need to have a good credit score. Your lender either typically sends the loan amount to you or directly to the shop where you are repairing your car.
What Can Be Covered by a Car Repair Loan?
Usually, when you take a car repair loan, it revolves around making sure your vehicle is ready to hit the road smoothly again. This would include taking care of the tires, doing the actual repair and service work, and even doing some advance maintenance to make sure your car doesn’t break down again.
There are lenders who go above and beyond, even offering assistance programs for the road, protection plans on vehicles, and even personal cash in some cases.
The things that aren’t covered by car repair loans are certain non-essential parts of the car like the stereo system, no prepaid maintenance package, and no warranty extension.
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The loan ranges of lenders also differ based on how much your credit score allows along with state regulations.
Things to Be On the Lookout For
So what should you be on the lookout for while searching for a good auto repair loan arrangement?
If you look hard enough, you will be able to find auto repair loans that offer you maximum advantage. Schemes, where you have zero percent interest if you pay within 60 days, are your best friend.
Flexible options for payment should be another thing you should be on the lookout for. Not only should the loan amount be considerate of your income, the payment timeline should also be made in the way that’s most advantageous to you.
The application process should be easy and fast, otherwise, what’s the point of applying for car repair?
Will My Insurance Company Pay for My Car Repair Loan?
Let’s say that you had an accident, or somebody damaged your car and you need your car repaired now, but the insurance company is taking months to finalize your claim. You may get a payday loan to pay for your repairs, or some sort of car repair loan. Under most circumstances, your insurance claim will allow you to pay for the money you borrowed, but they probably will not pay the interest and fees. However, if you are getting a credit from the actual mechanic, and the invoice (including interest) is from the mechanic, then you may be able to have the insurance companies pay off the entire amount.
Final Thoughts
Remember, car repair loans are still a risky business. Before you agree to any of them, read the payments term as carefully as you can. Don’t get tricked into paying back for more than you should or end up in situations where you long pass the due date of payment. If you decide car repair loans aren’t the best option for you, payday loans are always there for short term loan options. If you’re looking for a quality service center for your vehicle, Dealer Service Alternative is the best option.
