So you have bought a car and while you are still making payments for it, you find that you now need money for repairs. In case the cost for repairing your car does not exceed your car value, you can opt for auto or car repair financing. There are auto repair loans you can avail not only to pay for your repairs, but also to pay the insurance deductible to avail your insurance coverage for your car.
- Car repair loans range from a few hundreds to a few thousand dollars, based on your repair expenses. This is why you should wisely choose your loan, so that you can repay it within a year or two.
- Ask your friends and families for references and suggestions of reasonable car repair financiers. If you don’t know anyone who has recently availed of such a loan, just use the internet to find a lender. Type the right keywords in your favorite browsers and you are directed to the various lenders who offer these loans.
- Always compare the rates quoted by lenders offering auto repair loans. Don’t choose the first lender you come across as there may be other lenders offering lower quotes.
- Ask the lenders for quotes based on the amount of repairs for your car. It is better if you have a car shop mechanic check your car to give you an average of the car repair costs and the cost of all the parts that have to be replaced. Use this information to get a quote from the lenders. Most lenders set the terms of your car repair loan based on the current prime interest rates.
- Be aware of those lenders who give you a quote without asking you for an estimate for your car repairs. There is no way these lenders can give you an estimate without knowing how much you actually require for repairs. It is thus better to stay away from such lenders.
- If you have a good credit, you can get your loan at a low interest rate. However if you have a less than perfect credit, you will be charged a higher rate of interest. Remember that no matter if you have a good or bad credit rating; it is important that you compare the terms and rates from various lenders before choosing the lender charging the lowest interest rates possible.
- Make sure that once you get your car repair loan that you pay it off as soon as possible. This way you avoid paying unnecessarily extra for interest.
- Always make calculations before looking for your auto repair loan. This is because if the cost of your car installment payments and the cost of paying off the car repair loan adds up to be more than the cost of a new car, it’s better to sell your car and buy a new one.
Of course, if your repair costs do not make you spend more than you would on a new car, then a car repair loan is indeed the best way you can keep your car in top condition to drive and use anywhere you want without any worry.