Having a car is a widespread dream, and a requirement for numerous people. But with car ownership comes ongoing expenses which may prove challenging to manage for some individuals.
There are various financing options available to help cover the costs associated with car repairs. Bentley servicing near Toronto in North York or other cities in Canada provides car owners with the option to finance car repairs with flexible and convenient plans.
1. Sell Your Car for Cash
Not selling your car may not be your goal, but selling it could add extra funds to your wallet. Before selling, take note of similar vehicle prices in your area and set your selling price accordingly. Post plenty of photos online (Craigslist or Facebook Marketplace is ideal) in order to promote interest, and be clear about its condition – including including its VIN so buyers can search its history easily.
Consider selling your vehicle through a dealership for a more flexible transaction; however, dealerships typically expect to spend money reconditioning it, which can affect its final sale price. You can also explore what your car’s worth by consulting online auto buyers such as CarMax or Carvana who will pay directly for it and accept older, high mileage, damaged and salvage titles vehicles as payment.
Credit cards provide flexible financing solutions, but be mindful not to overspending. Maxing out a credit card can take months or years of payments and cost more in interest than the original repair bill itself. When possible, use credit cards only for emergencies or expenses you can repay within one billing cycle.
Personal loans may provide another means of financing car repairs. Depending on the lender, you might even be able to borrow enough for repairs as soon as the next business day and receive funds directly into your bank account. Most installment loans require monthly payments until all debt has been satisfied in full.
2. Ask a Friend or Family Member for Money
Car repair costs are an inevitable aspect of vehicle ownership. Without regular vehicle maintenance, repair bills could quickly add up to equal the price of purchasing a new or used vehicle if left neglected. While you might have an auto warranty and collision coverage policies in place to help cover these expenses, they might still leave you exposed if something unexpected goes wrong that leaves an unexpected bill outstanding.
Though asking a friend or family member for money may be daunting, it can be one of your most viable solutions. Just make sure they understand that what you are seeking is actually a loan instead of a gift and plan out a repayment schedule to avoid confusion or strain on relationships.
An alternative method of financing car repair costs is through personal loans; however, your credit history will play a part in whether or not you qualify and in terms and rates offered to you depending on this decision.
Your local mechanic or auto parts store may offer a credit card in partnership with a financial institution, like Midas or NAPA auto parts stores do with Synchrony Car Care credit cards that you can use to pay for repairs and more. In these instances, it’s wiser to select one with an intro 0% purchase APR so that any balance can be paid off within this period – otherwise interest costs could mount significantly over time.
3. Get a Personal Loan
Some auto repair shops provide their customers with financing through in-house loans or partnerships with lending companies to cover repair costs. Although this may be convenient, shopping around for independent lenders offers you more choice and more competitive rates – plus once approved you will need to make affordable monthly payments until all repairs have been paid off.
Personal loans come from a range of sources, from banks and credit unions to online lenders and specialty providers such as car repair loans. Most personal loans offer fixed interest rates and terms so you know exactly how much your monthly payment will be and when it needs to be repaid; additionally, certain lenders specialize in loans for people with poor credit.
Personal loans may be an ideal way to cover car repairs in Canada if you can make consistent, affordable monthly payments – and the funds can also be used for other expenses as needed.
But, if your car repairs require constant reliance on credit cards for funding, it may be wise to replace it with something newer and more reliable. Spending money repairing an old vehicle that continually breaks down can only cost more in repairs; plus using credit cards can have serious repercussions for your credit score.
4. Get a Credit Card
Credit cards can be an effective means for financing auto repairs if you lack the money upfront. Many offer rewards or 0% intro APR offers that help delay interest payments – just be sure to select one with an affordable annual percentage rate (APR).
Car repairs can be unplanned and unforeseen costs can quickly add up – be it an engine breakdown or broken air conditioning unit – leaving many drivers unprepared to afford these expenses. If this is the case for you, alternative strategies such as borrowing or selling items may need to be used; however, these solutions may strain relationships and aren’t suitable for everyone.
Personal loans can also be an excellent way of financing car repairs. Although applying for one requires more information and requires a higher credit score than payday or title loans, personal loans don’t pose the same risks in terms of costly interest rates and fees compared with those products; however, approval time can take some time and have loan minimums which make them less appealing if your repair bill only requires several hundred dollars in coverage.
If you don’t have enough money for repairs right away, another alternative could be taking out a loan against your 401(k). But this should only be used in an emergency scenario; by withdrawing money from this account you’ll owe income tax and could face severe penalties should you lose your job or fail to repay all debt within 60 days.
5. Get a Home Equity Loan or HELOC
Home equity may provide the funding you need for car repairs if you are a homeowner. A Home Equity Line of Credit, commonly referred to as HELOC, allows borrowers to borrow against the value of their home with fixed interest rates and repayment terms that usually span over years. Before applying, however, it is essential that you familiarize yourself with all terms associated with such loans as they could alter your mortgage rate while simultaneously maintaining minimum levels of equity in your property.
Many auto repair shops provide financing solutions in-house or through third-party partners to make car repair easier for customers, such as store-branded credit cards or payment plans that act like personal loans. If you’re considering taking out one of these loans for auto repairs, make sure you shop around and compare lender offers in order to secure the most favorable terms and rates.
Asking family or friends for money may also be an option for financing car repairs; it can help avoid interest charges while simultaneously helping build up emergency savings accounts. Be sure to document any agreements in writing, setting out exactly when repayment of funds must occur.
Finding ways to finance car repairs can seem like an endless pursuit, with various loans coming with their own set of costs and requirements. If you find yourself struggling to afford repairs, starting saving right away and considering alternatives such as an installment loan from Tekaloan could save on interest costs and help make car repair affordable.
