How to Pay for Car Repairs with No Money: Know Your Options
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? You need this car to go to work, and you cannot just leave it broken.
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?
If your car needs either minor or extensive repairs and you’re low on funds, do not lose hope. The following options may help you find a viable solution to getting the cash you need for auto repairs.
Apply for a Personal Loan
A way how people come up to afford their auto repair is through personal loans. Provided you have a clean credit record; you can apply for a personal loan as a quick way to get cash. It would be best to speak to a loan consultant about rates and how much money you qualify for. You may be eligible to take out a loan that exceeds the amount to repair your vehicle. Nonetheless, you should only apply for the cash you need to avoid unnecessary debt.
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
You can easily become overwhelmed when you’re struggling financially, and your car breaks down. However, there are some available options for fast auto repair financing. 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. 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 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. The money is not handed out to you. 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.
You can try and get a loan from a family member or a friend. You can approach them with a smart payment plan to convince them to give you a personal loan. It can be tricky and might look like a shameful move sometimes, but you don’t have to worry until you have a solid plan that makes sure your relationship is not stained.
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. Having to pay for an expensive auto repair yourself is not a budget-friendly option.
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 make 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. Having a provider offer emergency road services is crucial in the case of an accident.
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. Credit cards can help you with all sorts of expenses that need immediate expenditure, such as healthcare, a replacement for lost or broken items, and of course, auto repairs. 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.
Nevertheless, credit cards can come in handy when you need them. But remember that you should use credit cards only for emergencies to avoid overspending.
Warning: How to Avoid Predatory Lending Practices
You might be feeling desperate right now, and your credit score might be horrible. Just because this is the case, don’t lose your composure. 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. What does predatory means? 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%. How do you avoid trouble if this is the only option you have left?
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. See what is possible, but know that you will have to put the repairs on your credit card most of the time.
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. Ask your mechanic about the options that he offers to his clients and the deal you can make.
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. Talking to your mechanic will also give you a better knowledge of the importance of the repair.
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. You never know what you might find if you never look. Go to at least three or four different places and talk to other people before making your final decision.
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.
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.
Sometimes, you don’t manage to find yourself a good deal at a mechanic. You might even fail to fix the car yourself. In this situation, you could barter with someone in your local area, someone in your family, or perhaps a friend who is handy with cars. You can make a good deal with them where they spend their time fixing your car, and you return the favor somehow.
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.
- “Why You Should Pay For Car Repairs With a Credit Card” – https://www.csmonitor.com/Business/The-Simple-Dollar/2012/0216/Why-you-should-pay-for-car-repairs-with-a-credit-card
- “Top Advantages And Disadvantages Of Car Insurance” – https://markets.businessinsider.com/news/stocks/top-advantages-and-disadvantages-of-car-insurance-quotes-online-1027391559
Mike Lefler shares his interest in a wide range of different subjects, including his love for finance-related writing. The passion for writing, related exceptional skills and his years of study, along with a Master’s Degree at Southwest Minnesota State University led him to become one of the brilliant authors in the massive finance arena and in the area of Financial Planning and Lending Industry.
At the same time, his ability to identify the main points of various aspects and intention to significantly contribute makes him a great team member and a valuable part of 1FirstCashAdvance.