Categories: Useful Automotive Information
5 Ways to Finance Car Repairs
Owning a car inherently means you'll face vehicle maintenance and repairs. Problems with your car's engine, transmission, brakes, or suspension can pop up without warning, necessitating a financial buffer to handle these costs. Whether it's an urgent roadside breakdown or a long-overdue regular service, the hefty price tag of car repairs can significantly strain your finances.
Owning a car inherently means you'll face vehicle maintenance and repairs. Problems with your car's engine, transmission, brakes, or suspension can pop up without warning, necessitating a financial buffer to handle these costs. Sadly, many people are blindsided by unforeseen car repair expenses, finding themselves without the necessary funds to cover them. Whether it's an urgent roadside breakdown or a long-overdue regular service, the hefty price tag of car repairs can significantly strain your finances. Here are some of the most effective ways to finance car repairs.
Cash Advance Loans
Certain firms, such as Superb Cash Advance, can easily offer you advance cash advance loans to take care of your car repair. These payday advance apps can be quite beneficial when in a tight spot, allowing you to obtain a few hundred dollars within a few days of your request.
Borrowing from your paycheck eliminates concerns about having a good credit score or a low debt-to-income ratio. Many of these apps are also free, which is an added advantage. It's advisable to consider a cash advance only if you have the assurance that the remaining part of your paycheck will sufficiently cover your other expenses or bills. Sites like myAutoloan can help you learn more.
Use Credit Cards
Most auto repair shops welcome payment through credit cards for vehicle services. If your credit limit permits, you can opt to use a single credit card or multiple ones to cover the repair costs. However, it's not advisable to exhaust your credit limit if you don't have a plan to settle the balance promptly.
In case you're contemplating getting a new credit card specifically for car maintenance, aim for one that has a lower annual percentage rate (APR), or provides rewards. Be sure to restrain from using the card for expenses beyond your car repairs.
Obtain a Loan from Relatives or Friends
This choice is not commonly favored, but at times, necessity compels action. Possibly, benevolent relatives or pals might possess the resources to assist you with urgent vehicle fixes. Mostly, a simple request is all that's required.
Nonetheless, if your car is important, this could be the quickest remedy. Always specify whether it's a loan or a gift; if it's a loan, establish solid arrangements for reimbursement to avoid any disputes or family disagreements.
Utilize Your Insurance
If your automobile suffers damage due to incidents such as collisions, fire, theft, acts of vandalism, or natural calamities, your car insurance can help in footing the bill for repairs. The coverage extent depends on your policy details and the severity of the damage. If your policy includes collision or comprehensive insurance, it may cover a significant part or even all of the repair expenses.
Before you proceed with a claim, thoroughly scrutinize your policy. Document all the damage to your vehicle with photographs, as these could be beneficial for substantiation when making a claim. Explore your car insurance to see if it offers additional optional coverage such as roadside assistance which can be handy in instances of flat tires, dead batteries, or other mechanical issues.
Pawn Shop Loans
Pawn shops provide an option to secure a short-term loan by using almost any item of value as collateral. The pawnbroker evaluates the worth of your item and proposes a loan amount and conditions, without the need for a credit check.
Upon agreement, your valuable item is swapped for the loan and a receipt. Typically, the loan duration is 30 days with a possible additional 30-day grace period to pay back the loan along with the accrued interest. The pawned item is returned to you when you redeem your receipt after repaying the loan. If you fail to repay, you can extend the loan. However, if repayment is not possible, the pawn shop can take possession of the item. Importantly, this process does not impact your credit score.
When unexpected car maintenance crops up next time, ponder over these loan options. Balance out the positives and negatives of each to select the most appropriate loan for your financial condition and personal circumstances.