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Even the most careful and defensive of drivers can get into an accident. Even the most diligent car owner can suddenly find their car stuck with a problem. The biggest hassle with auto repairs out of nowhere is paying for it.
While the actual price would vary depending on the job itself, auto repairs are generally not cheap. Surveys show that the average car repair cost is $500. If you get into an accident or unexpected problem with your car, this means an expensive, unplanned expenditure. Car financing loans are best for this situation.
There are a lot of great auto repair finance providers out there, as these Protect My Car reviews show.
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What Is Financing Auto Repairs?
Financing auto repair is a loan designed to cover your vehicle repair costs.
What sets this financial option apart is its several unique features.
- The fund is provided as a lump sum: Once this loan is approved, you can receive the money in full to pay off your auto repairs right there and then, which is very convenient.
- No collaterals required: Since this is considered a personal loan, the loan is unsecured—that is, your assets are safe even if you can’t keep up with payments.
- Fast approvals: Typically, financing auto repair can be approved within a week or less. Some lenders can even accomplish this within a business day. The point is this is a fast way to get money to get your car back on the road so you can get on with your daily routine.
It is also interesting to note that if the vehicle needing repairs is for business, it may fall under input tax credit.
Types of Financing Auto Repairs
You have several options for auto repair loans and financing.
1. Find a lender: There are plenty of lenders out there who specifically deal with personal or auto loans. Banks usually have personal loans but may have additional requirements or longer processes. Some companies offer car repair loans specifically.
2. Mechanic financing: Check if your mechanic offers financing options in their shop. Usually, they can give you installment options or other deals. If your current mechanic doesn’t have this, you can go around town first to find one.
3.Use your credit card: The simplest form of getting a loan is using your credit card. Most car shops and mechanics would accept this as a form of payment. They may have installment options as well, making your life a lot easier.
The common question here is—should you find a lender or use your credit card?
There are advantages and disadvantages to both. For example, credit cards can offer you 0% interest. However, your mechanic may not offer that option.
Also, some mechanics prefer or give discounts when you pay in cash, which can bring down your overall cost, even with interest from the lender.
How to Get Financing Auto Repairs
If you’ve decided to go with a lender to help with your auto repairs, the process is pretty straightforward. Usually, it involves these steps:
1. Shop for the best deals: Different companies and banks will have different offerings. You should make sure to check those available to you and compare their loans to make sure you get what you need. One crucial aspect here is to compare interest rates and other fees to make sure you are getting the best deal possible.
2. Choose a loan: Providers would have several options available as well. So, make sure to check internally what they have to offer and what you can get for your situation.
3. Fill up the application: You have to provide your personal information to the lender. They would most likely require documentation to be submitted, such as tax returns with your application form.
4. Receive the funds: Once you submit your application, this will be checked and validated by the lender. If all goes well, they will send you the money and you’re able to pay for your car repair.
The actual process may vary from lender to lender, but these are the usual things covered.
What Can Auto Repair Loan Cover?
As far as coverage goes, these types of loans usually cover anything related to fixing your vehicle. It can be a viable option to get new tires, replace a broken windshield, change your transmission, and many more.
Technically, you can use this for upgrades such as new rims or interiors. However, that may not be a good idea due to the interest rates. Keep this option only for emergency or important repairs.
What’s important to remember is to borrow what you need only to keep your interest at a minimum.
Financing auto repair is a great option if you are facing car troubles. While you pay a bit more due to the interest, it is still better than not having your car available for use.
