By Quick Auto Brain.
Your car has become the center if not the integral part of your life, without it you could have a much disorganized day. So let’s start from the very beginning, when you are out shopping for a car, you plan to use for a very long time.
Avoid lemons ensure you do a lot of investigation on the reliability and maintenance cost of the car before you do your purchase. This is done not promise a whole of no repairs but at least a reduce rate of repairs which can cost you a lot, but you will still have those days were you get to your car and there is a fault that needs urgent repairs especially if it is your daily driver. Maintenance and repair costs are unavoidable expenses. And unless you have a second vehicle in the home or you can easily access public transportation, keeping your car in good operating shape isn’t optional. It’s a necessity and oftentimes an expensive one, especially if you’re not keeping up with routine maintenance. So what do you do when you’re faced with this major car repair, and there is no way to pay for it? First, shop around. Take your quote to another mechanic for a second opinion. You may find a better deal elsewhere. You can also try negotiating a lower price with the mechanic or asking if they’re running any seasonal specials.
According to a survey by travel organization AAA, common auto repairs cost an average of $500 to $600, with other major repairs running upwards of $1,000 or more. And 1 in 3 drivers reported they would be unable to pay for an unexpected car repair.
Get your final estimate for repairs, then figure out how to pay for them. Here are 5 ways to pay for car repairs:
- Mechanic financing
Look out for mechanics that partner with lenders to offer their own financing option. They could offer a credit card or a payment plan in the form of a personal loan from its lending partner. You could also be offered interest-free financing for a period of months, which is great if you pay off the loan or credit card before the introductory period expires. But if you take longer to pay it off, your “go-to” rate will be substantially higher and you will be required to pay the interest that has accumulated since the original date of the loan.
2. Personal Loan
There is an advantage of using a personal loan to pay for your car repairs it allows you to pay the mechanic right away, and spread your payments out over time. If you’re thinking of applying for a personal loan, choose a lender that can get your money to you fast that same day, even with terms that are easy to understand. In other words, you want to clear about how much your loan is for, how much your monthly payments will be, and how long it will take you to pay it back.
3. Credit Cards
You can consider using an existing credit card or a combination of cards to pay for the repairs if you have the available credit. But maxing out your credit card(s) comes with its price and can limit your ability to pay for future purchases. If you’re thinking about opening a new credit card, look for one with a lower APR, which can give you a lower monthly payment and cost you less in interest. And avoid the temptation to use the card for more than just the needed auto repairs. Otherwise, you could end up deeper in debt with no clear payoff date in sight.
4. Title Loans
Much like a payday loan, a car title loan is for a short period of time, usually 30 days, and you can receive your money fairly fast. To get a car title loan, you need to own your car outright or have equity in it. In exchange for the loan, you give the lender the title to your car until the loan is paid in full. For some, a car title loan could be an attractive option for paying for car repairs, especially if you’ve had trouble getting financing elsewhere. But it’s an expensive form of credit lenders often charge an average APR of about 300%.
5. Emergency Funds
If you are the saving kind of person your emergency savings could be used for, a major car repair this qualifies as one of those situations where it’s necessary to dip into your savings. Even if you don’t have enough to cover the mechanic’s bill in full, you may be able to lower the amount financed if you can pay even a portion of the total in cash.
Here are the top 5 Lenders you can use for your Repairs.
- AVANT
- AXOS Bank
- Best egg
- Discover
- Freedomplus