Owning a car is no longer considered a luxury. It is a necessity for millions of people around the world. While not every consumer has easy access to public transportation or a second car in the family, keeping your own vehicle in good working order is essential.
However, cars can break down occasionally and maintaining them can be quite expensive. And there are many ways to finance these costs, from cash advance app personal loan. Let’s see the best options for getting extra funds when you face emergency car repair expenses.
Do you need to finance a car repair?
Few people keep track of their car’s routine maintenance. Therefore, urgent car repair expenses can easily throw you off balance and leave you ill-prepared to deal with those immediate costs.
Typically, auto repair costs can be around $500 or $600, while major vehicle repair expenses can reach $1,000 and more. According to StatisticalAmerican consumers spent $175 billion on services related to the maintenance and repair of their vehicles in 2020.
As you can see, not all drivers and car owners can afford to immediately cover these costs out of their own pocket. And you certainly can’t postpone the decision to fix your car if you use it to go to work every day. What are the possible solutions if you haven’t saved enough money? You can take the quote from one mechanic to another for a second opinion. It always pays to shop around and compare rates to receive a lower price.
Best options to pay for a car repair without money
Personal loan
This is a common solution for people who want to get extra funds to cover emergency car repair expenses. If you have no savings at all, getting a personal loan can help. Local banks and credit unions can issue a personal loan to meet your immediate cash needs.
The application process differs between lending institutions and some of them may require additional documents. Plus, you can turn to alternative lenders and get financing in one or two business days. Getting a personal loan is useful because it allows you to pay repair costs immediately and pay off the debt gradually over time.
cash advance application
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 still having the ability to meet their needs.
You can check the reviews to select the best cash advance app and simply download it to your mobile phone. The loan application process is very simple and secure. It allows customers to get funded quickly and hassle-free. If you want to get back on the road quickly, you should try this option.
Mechanical financing
Many mechanics also cooperate with creditors to provide customers with in-house financing options. You can get a special payment plan for your vehicle repair in the form of a small loan or get a brand name credit card from the mechanic’s lending partner.
Some offers are interest-free, which can be beneficial for those who wish to save their funds. Remember to repay the debt on time according to the repayment schedule, otherwise you will face late penalties.
Credit card
This is another useful method of financing vehicle repair expenses. Many auto repair shops and mechanics accept this solution for auto repairs. You can use your credit card to cover these costs.
However, you shouldn’t max out your card because you can’t afford to pay off the balance at the end of the month. If you want to get a new credit card for this purpose, you can look for one with special rewards or a lower APR.
Ask your family and friends
Some people don’t want to use this option because it can be rather inconvenient and embarrassing to ask your relatives and friends to help you financially. However, if you cannot qualify for other loan solutions and are having trouble with your credit score, borrowing funds for people you know may also be a suitable option.
Just make sure you fully understand the terms of borrowing – whether you get the funds as a grant or as a loan. If it’s a loan, you’ll have to return the funds according to the terms you negotiated with your friend or family member.
Emergency fund
Do you have an emergency fund? Financial experts advise everyone to set aside a portion of their monthly income to build an emergency fund. This fund works differently from your savings account.
You can only withdraw money from it for unforeseen expenses that you cannot cover yourself. If you can tap into those savings and avoid debt in the form of credit cards and loans, that’s much better for your financial health.
Additional tips
Do not prepay auto repair shops or mechanics. The common practice is to pay when the work is done. If an expensive part of the vehicle has to be ordered, however, this may be the exception.
You can avoid having frequent and expensive car repairs if you stick to scheduled services and maintenance of your car. Make sure you don’t forget about tune-ups and oil changes, as this can prevent major issues with your vehicle and save you more money in the long run.
The essential
In conclusion, if you don’t have enough funds in your savings account to finance an emergency car repair, you can try one of these options. Be sure to take the 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. Alternatively, using one of the loan solutions can help you receive extra money to cover your car repair costs.
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