When you rely on your car to get to work or drive your kids to school, sending the car to the shop for repair can upend your life.
But even more so than the inconvenience of going a day or two without your car, the cost of certain repairs can cause serious financial strain. The good news is there are financing options that can help. From auto repair loans to mechanic payment plans, we’ll cover four ways to pay for vehicle expenses so you can get back on the road quickly.
1. Auto Repair Loans
Auto repair personal loans are a specific type of auto repair financing intended to get you the money you need fast. These loans may be processed quickly once you’re approved, sometimes providing you with money in your account as soon as the next business day. Since these loans are installment loans, you’ll have fixed monthly payments and know the exact date you’ll make the last payment when you sign to accept the loan.
As you consider auto repair loans, keep in mind that having a high credit score will get you the best loan terms, and a secured personal loan can get you better terms than an unsecured personal loan if you use your car title as collateral. If you’re building or rebuilding your credit, you may want to think about having a co-signer with a higher score sign for the loan alongside you to get a more favorable interest rate.
2. Emergency Savings
If you have an emergency fund or savings account, using this money to pay for an auto repair is often a smart move since you’ll be able to do so interest-free. Even if you only have a fraction of the repair available in savings, you can pay off some of what’s due.
3. Mechanic Payment Plans
Some mechanics offer payment plans that can offer you a reprieve from paying a lump sum amount. You may be able to pay the mechanic directly in a series of installments that you agree to at the time of the repair. If the mechanic doesn’t offer a loan directly, they may partner with certain companies to issue the financing. Be sure to understand who is holding the loan before you apply and confirm what the interest and fees add up to over the life of the loan.
4. Loan From a Family Member or Friend
Asking loved ones for money is another way to get the funds you need quickly. But before you ask family or a close friend for the cash for a repair, figure out exactly how long it will take you to repay the money. You may also consider creating a written contract outlining how much you’re borrowing and the date you’ll pay it back. That way, the loan is more official, and both sides have clear expectations regarding when you’ll return the money.
The Bottom Line
When you need to pay for a car repair but don’t have cash on hand, financing options, mechanic payment plans, or asking a loved one may help. Be sure that no matter which option you choose to cover the repair, you have a solid plan in place to repay what you owe.