How to Pay for Car Repairs with No Money: Know Your Options

How to Pay for Car Repairs with No Money: Know Your Options


9 Min Read

The lack of money can put many people under strain for many of life’s necessities. For example, if you have a car and use it every day to go to work, your vehicle is necessary. But your car can break down now and then. It is also natural if you don’t have money to fix it immediately. What do you do?

During a recent AAA survey, around 25% of American drivers said they can’t repair their car because of bad economic conditions. They really could not afford to pay $2,000 to get their car fixed. At the same time, one in eight Americans cannot even pay $1,000 dollars.

Having a savings account for such cases is a must and can help a lot in the long term. But what do you do when you don’t have the cash on hand to fix your car? How to pay for car repairs with no money?

Apply for a Personal Loan

One of the advantages of personal loans is that they can consolidate existing debt. Personal loans are also easy to apply, as easy as online no fax payday loans. If you are looking for a quick way to get the cash you need, personal loans will make it possible. They are also perfect to finance an urgent car repair.

When you want to get a personal loan, consider that you need a clean credit record to be approved if you’re going to apply for the loan. Even if you have a good credit score, the traditional lender could refuse the required amount.

Suppose a personal loan is not an option for you. In that case, you can try other alternatives, such as online same day payday loans for bad credit or auto lenders. They’re a much better option for those who have bad credit or no credit score at all.

Try Auto Repair Loans or Auto Lenders

Some companies specialize in providing auto repair loans intended for quick vehicle repairs. Once your auto lender approves your loan request, you get the funds. Make sure to check the payment terms before signing an agreement.

One of the online auto loan benefits is that you can get immediately approved for the loan even if you have a bad credit score. If your credit score is too low and you are unable to get a loan from lenders, you can try applying for a tribal loan from tribal lenders who have even lower requirements for all applicants. The lenders don’t perform hard credit checks, which means your current credit score won’t be affected. More than that, you could build your credit rating, making on-time payments, ultimately improving your credit score.

Nevertheless, auto loans have some downsides, too. In case you don’t make payments on the agreed due dates, your car can get repossessed. Borrowers are usually able to opt for 24- to 72-month loans. The major difference between them is the interest and payment amount.

Get a Auto Repair Loan

Get a Personal Loans from a Family Member or a Friend

If you don’t like car repair loans, there is another option you can choose. You can find some money for auto repair financing by asking for help. That’s right. There is no shame and nothing wrong with asking for help. You get to repay it on time, to the person who is helping you. The benefit of it is that they won’t ask for additional charges and interest fees.

Check out Car Repair Insurance Options

Even though people might not think this a lot, insurance companies are among the best options for saving money for car repairing. Before you can say ‘I can’t afford my car repairs,’ see if maybe you can afford cheaper payments like auto insurance. It is much more beneficial to pay a smaller amount now and then and have your car fixed in case of accidents.

You must ensure costly assets in unforeseen circumstances such as car accidents, theft, or auto breakdowns. Insurance companies cover the costs of car damage, which could help you when you don’t have the cash on hand to pay for your vehicle’s repairs. You should select an insurance company that is customized to your needs to avoid stress and unnecessary expenditure.

There are some advantages to making deals with auto insurance providers, such as having your insurance cover the damage with small installments. You can even get your car replaced in case of theft. But the downsides are that insurance holders may have to pay deductibles before you can make claims.

It would be best if you also considered that insurance costs are more than liability coverage, and premiums can increase after requests. However, members of AAA might find a trustworthy provider who offers roadside help.

Credit Card Coverage

Using your credit card to pay for repairs is quick and easy. Make sure you only use your credit card for emergencies. You are welcome to use your credit card to repair such minor damages as windshield scratches, cracks, dents, broken windows, busted headlights, paintwork, fused lights on the rear and front of your car.

The most notable advantages of credit card usage include an opportunity to instantly pay for the car repair. It doesn’t matter what sum you’re going to pay – you can return large amounts of money at a time as well. But before using your credit card as a payment method, consider that your installments increase after every payment, and the lender can extend payback time.

Warning: How to Avoid Predatory Lending Practices

You might be considering a title loan to have some car repair credit, which you can use to fix your car. But you must be very careful in your decision making. There are a lot of companies out there that use predatory practices while offering title loans. It means financial products with a high cost that target people like you who don’t have many options.

Title loans can be unregulated, and they can have sky-high interests that might shock you. You will find title loans with a normal APR of 300-500% and, in some cases, even 1000%.

Make sure you stick to a short payment term to lower your interest rate and also get out of the deal as soon as possible. Another thing you should be asking about is affordable monthly payments. Ask if you can pay the car repair loan in installments.

Negotiate with the Mechanic

Go online and search for “cheap auto repairs near me”. You will find plenty of results. Nonetheless, one of the best options you might have is to talk to your mechanic about financing. For larger payments, most of the mechanics will give you the financing option. They help you to pay the whole sum month after month instead of all at once.

Talk to the mechanic about the issue that the car has. “I need my car fixed but have no money for it. So, how can it be fixed less expensively?” You can also ask the mechanic if the repair is mandatory at the moment or if the car is still usable.

See what kind of car repair discounts are available that can be at your advantage. Negotiating is going to help have a win-win situation for both of you.

Shop Around

Don’t immediately go for the first option you find. If you can be immediately towed to the repair shop, then ok. But if you have time and opportunities, then you should take advantage of them, or at least you shop around. Look at the best price mechanics and see which one works better for you. Go to at least three or four different places and talk to other people before making your final decision.

Car Repairs Loan

Buy Used Parts, DIY or Sell Your Car

One of the best ways to lower your car’s cost is to buy used parts. New parts usually add to the cost of repair, but you can avoid paying a lot of money if you buy used parts. Maybe you don’t even need a mechanic to repair your car. There is a ton of information on the internet nowadays. Some videos on DIY car repair can teach you how to fix your car yourself and save a lot of money.

You can also decide to sell the car if you find it the best option. You can sell it as a damaged car for someone who maybe wants to fix it. Alternatively, you can sell its parts and try to make a little bit more money out of it.

Barter Agreements

Another alternative is to discuss a payment plan with the company that’s repairing your vehicle. They may offer better terms than loan companies or banks. You can even try your luck with bartering with the auto repair company. Perhaps you have a skill they could use, such as mechanical work, building maintenance, and assistance around the shop. Discuss your barter with the owner, and if you agree, put everything in writing to protect all parties involved.


Don’t feel like you are financially stuck when you need auto repairs done: now, you have many finance options to pick from. You have to be willing enough to go out there and find the best option for yourself. That’s it. You can repair your car even during rainy financial days.

Frequently Asked Questions

How do I apply for auto repair financing?

To apply for auto repair financing, you’ll need to fill out an application and provide some basic information about your vehicle and your personal finances. After that, the lender will run a soft credit check and assess your eligibility so that it can determine what kind of loan options are available for you.

Is it cheaper to buy another car?

If the expenses for the car repairs are too high compared to the car value, purchasing another car may be an option.

What can auto repair loans cover?

Auto repair loans can cover a wide range of repairs, from oil changes to transmission replacements.

Do you pay before or after a car repair?

Take care. If any mechanic or auto repair shop asks for upfront payment before making repairs, it can be a fraud. It might be an exception only If your car needs an expensive part that can be ordered. Reliable car repair shops require payment only after the complete repairs.

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Michael Lefler

Written by Michael Lefler

Written by Michael Lefler

Mike Lefler shares his interest in a wide range of different subjects, including his love for finance-related writing. His passion for writing and his years of study led him to become one of the brilliant authors in the massive finance arena and in the area of Financial Planning and Lending Industry.

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