Learn How To Finance An Emergency Car Repair
Owning a car is no longer considered a luxury. This is a necessity for millions of people around the world. While not every consumer has easy access to public transport or a second auto in the family, keeping your own vehicle in good shape is a must.
However, cars may break down occasionally and their maintenance may be quite expensive. And there are several ways to finance those costs, from cash advance app to personal loan. Let’s see the top options to obtain extra funds when you face urgent car repair expenses.
Do You Need to Finance a Car Repair?
Not many people keep up with routine car maintenance. Hence, urgent car repair expenses may easily unsettle you and leave you unprepared to deal with these immediate costs.
Generally, the costs for an auto repair may be about $500 or $600 while major vehicle repair expenses can reach up to $1,000 and higher. According to Statista, American consumers spent 175 billion dollars on services related to the maintenance and repair of their vehicles in 2020.
As you may see, not every driver and car owner can afford to cover such costs from their own pockets right away. And you certainly can’t postpone the decision to repair your car if you use it to go to work every day. What are the possible solutions if you haven’t saved enough cash? You may take the quote from one mechanic to another one to get a second opinion. It’s always beneficial to shop around and compare rates to receive a lower price.
Top Options to Pay For a Car Repair With No Money
This is a common solution for people who want to obtain supplemental funds to cover urgent auto repair expenses. If you don’t have any savings at all, getting a personal loan may help you. Local banks and credit unions may issue a personal loan to support your immediate cash needs.
The application process differs among crediting institutions and some of them may require additional paperwork. Also, you may turn to alternative lenders and get funded within one or two business days. Getting a personal loan is useful as it allows you to pay for repair costs straight away and repay the debt gradually over time.
Cash Advance App
Using a cash advance app is very convenient today. This is a popular option among consumers who value their time and want to minimize effort while getting a chance to support their needs.
You can look through reviews to select the best money advance app and just download it to your mobile phone. The loan request process is very easy and secure. It allows clients to get funded fast and with no hassle. If you want to get back on the road quickly, you should try this option.
Many mechanics also cooperate with creditors to provide in-house financing options to the clients. You may obtain a special payment plan for your vehicle repair in the form of a small loan or get a branded store credit card from the lending partner of the mechanic.
Some offers are interest-free so it may be beneficial for those who want to save their funds. Remember to pay the debt off on time according to the repayment schedule, though, or you will face late penalties.
This is another helpful method for financing vehicle repair expenses. Many car repair shops and mechanics accept this solution for auto repairs. You may utilize your credit card to cover these costs.
However, you shouldn’t max out your card as you may not afford to pay the balance at the end of the month. If you want to get a new credit card for this purpose, you may want to search for the one with special rewards or a lower APR.
Ask Your Family and Friends
Some people don’t want to use this option as it may be rather inconvenient and embarrassing to ask your relatives and friends to help you financially. However, if you can’t qualify for other lending solutions and have issues with your credit score, borrowing funds for people you know can also be a suitable option.
Just make sure you understand the terms of borrowing – whether you obtain the funds as a gift or in the form of a loan. If this is a loan you will have to return the funds according to the conditions you’ve negotiated with your friend or family member.
Do you have an emergency fund? Financial experts advise each person to set aside a portion of their monthly income toward establishing an emergency fund. This fund works differently from your savings account.
You may withdraw the money from it only for unforeseen expenses you can’t cover yourself. If you can dip into these savings and avoid getting into debt in the form of credit cards and loans, it’s much better for your financial health.
Don’t pay auto repair shops or mechanics upfront. The common practice is to pay after the work is done. If a big-ticket part of the vehicle needs to be ordered, it can be the exception, though.
You can avoid getting frequent and expensive car repairs if you keep up with scheduled services and car maintenance. Make sure you don’t forget about tune-ups and oil changes as it can prevent major issues with your vehicle and save you more funds in the long run.
The Bottom Line
In conclusion, if you don’t have enough funds in your savings account to finance an urgent car repair, you may try one of these options. Make sure you take some time to compare rates and shop around as you may be able to find a better deal or negotiate a lower price with a certain mechanic. If not, using one of the lending solutions can help you receive additional money to cover car repair expenses.