Car repairs can be expensive, particularly if you have to pay out of pocket. That is why it’s essential to consider other financing options like auto repair loans when in need of vehicle repairs.
These loans are unsecured, allowing you to borrow a lump sum of cash without placing collateral. They’re an ideal way to cover the cost of repairs quickly.
Auto shops
Auto repair loans are the ideal solution for business owners facing cash flow difficulties. They provide same-day financing so businesses can get the repairs necessary to stay running smoothly.
However, some loan options are more beneficial than others and it’s essential to shop around. In the end, select a loan which works best within your budget and repayment terms.
Auto repair shops typically face high equipment costs and insurance premiums. Fortunately, there are numerous financing options available for businesses looking to expand or invest in new equipment.
Third-party financing
If your car has been involved in an accident and the repair cost is beyond your means, creative financing may be needed. Credit cards are a popular option for many drivers; however, their high interest rates could push up the price tag on repairs significantly.
Another alternative is to turn to a third-party finance company that specializes in auto repair payments. They can approve you for an appropriate amount of money so that you don’t borrow more than what you can comfortably pay back within the agreed upon timeline.
Third-party financing can often be a faster alternative to traditional loans since it eliminates the need for comparison rates and application procedures. This makes it an ideal solution for people who are short on cash or require emergency financial help.
Credit cards
When you need to repair or replace your car, credit cards can be a great financing solution. Many credit card providers offer 0% interest promotional offers that save money on upfront costs and allow you to pay off the balance over time.
Some auto repair shops also provide co-branded credit cards or car loans funded through a partner bank, which have more relaxed credit approval standards and may accept you even with bad credit.
Tire and service credit cards are an ideal way to cover the expenses associated with costly repairs and services. They often come with a range of advantages, such as seasonal promotions and exclusive cardholder offers.
Payment plans
Payment plans can help finance auto repairs and are sometimes offered by some repair shops. However, they typically come with high interest rates, so you should carefully weigh all your options before making a final decision.
You may also be eligible for an auto repair loan through a personal lender such as NetCredit. They typically provide unsecured loans in amounts starting from $1,000.
The amount of the loan you qualify for depends on your credit score, income and debt-to-income ratio. Be sure to research fees and APRs offered by lenders in order to find one that works best in your situation.
Lenders
Auto repair loans come from a range of lenders; some don’t require credit checks and others require you to secure a cosigner.
Before applying for an auto repair loan, do your due diligence and research the requirements, application process and payback periods. Additionally, compare rates offered by various lenders.
To get prequalified, the most convenient way to do so is online. Many lenders provide this service within minutes of applying.
Once you have all of your options, it is time to compare them and find the lender with the most advantageous terms for your financial situation. Credible makes this easy with their user-friendly loan offer engine.
