I‘m sure we have all been there. You have paid all the bills, there is no more money left in the checking account, and right on cue, the car breaks down. Not everybody is independently wealthy, and few of us have the cash to be throwing at costly repairs for our vehicles. Luckily though, you always have the option of car repair loans.
Did you know that, according to the Victoria Transport Policy Institute, the average household spends close to $0.15 for every mile driven; on vehicle maintenance, fuel, financing, and insurance? So let’s say you have a vehicle with 50,000 miles on it. Over that 50,000 miles, you have spent around $7,500 just to keep your car on the road. If you think about it, you probably haven’t made a significant repair on the vehicle yet either, due to the low mileage. Needless to say, vehicles are insanely expensive to keep, and it’s no wonder that many of us don’t have the money to fix our vehicles when they eventually break down.
Finding Them Online
A Car Repair Loan is usually just your basic, run of the mill Personal Loan. You apply for the auto repair loan in the amount of your repair bill, and when you’re approved, you simply use the money to pay the bill. Then, just like any other loan, you must pay that money back in a timely manner. Car Repair Loans aren’t known to everybody, and actually very few people take advantage of them. Car Repair Loans can come in a couple different ways. They include, but are not necessarily limited to the following.
- Traditional Bank Loans
These are the traditional loans like you would get from your bank. The most common form will be a personal loan. Choosing your personal bank over “any old lender” for auto repair financing, can be beneficial to you in terms of interest rates and the amount you qualify for. If you want to shop around, taking your search online can yield tremendous results. Just look for lenders offering low interest rate personal loans.
- 90 Days “Same As Cash” Credit Cards
If you have your vehicle in the repair shop, ask the service manager if they have a financing option. Many shops these days offer some form of credit, and if you’re lucky, it will be same as cash. The way these auto repair loans work usually, is that a no interest offer is applied for a certain number of months. If the balance is paid in full by that date, you owe no more than the principle.
- Cash Advance Option
If you are in a bind financially, and you need cash right away to fix your car, you can use what’s called a cash advance to get the money. An auto repair loan like this is lent based on your income, and will usually need to be paid back within a week or two. It’s important to understand that the interest rates and fees associated with these loans are going to be VERY high. According to Payday Loan Consumer Information, combining the interest and fees an an average 2-Week loan term, the APR calculates to between 390 to 780%. A cash advance option should really only be used if you have exhausted all other options available.
Where to Apply For a Car Repair Loan?
As stated previously, a personal loan is the best car repair financing option available to most consumers. This is simply because you can keep costs low with competitive interest rates, as well as stretch out the payments in order to have as little impact on your wallet as possible. The best way to find a personal loan with a low rate, is to compare the numerous different lenders available online. The online lending industry has exploded as of late, and interest rates have never been more competitive.
What To Look For On A Lender’s Website
If you decide to look into online lending as an option for your car repair loan, there are a couple very important things that you want to look for whenever you find a potential lender online.
- The BBB (Better Business Bureau) Seal.
This is very important. Any company that is doing business online should be a part of the BBB. If the auto repair financing company is, they will display it prominently on the top or bottom of the page. If you do not see this seal, don’t bother with that lender, as there are countless reputable lenders available.
- “VeriSign Secured” Seal
In most cases, this will be displayed next to or near the BBB seal. What this indicates, is that the website itself is secure, and you can be comfortable divulging sensitive and personal information. If you do not see “https://website.com” in your browser, the site is not secure, and I would not advise that you give any personal information to that site.
Take Care When Applying For Auto Repair Loans
The benefits of loans for auto repair are quite obvious. Imagine the feeling of not having to worry about whether or not you’ll have the money available when your car breaks down (and lets face it, they all do eventually). When it does, you will have a resource that you can fall back on. Believe me, it is much easier to work in a few hundred dollars a month to the budget, as opposed to $1,500 dollars all at once.
Just like any loan, when you are preparing to apply for a Car Repair Loan, always do your homework. There are plenty of people out there that will gladly take your money while promising things they can’t deliver. Always go with a reputable company or bank and this will save you headaches down the road.
Citations For This Post:
- TDM Encyclopedia, The Cost of Driving, And The Savings from Reduced Vehicle Use, vtpi.org, 5/9/2010
- Payday Loan Consumer Information, Facts, paydayloaninfo.org, 2010
Our Latest Additions
- Using Credit Cards For Auto Repair Loans
- Using A Traditional Personal Loan For Auto Repair
- The Least Expensive Cars To Repair (2011)
- Using Payday Loans For Auto Repairs
- The “Unofficial Leader” Of Occupy Wall Street Explains Message (Video)
- College Get’s More Expensive – Top 25 Most Expensive Schools
- Some New Crazy Excuses For Missing Work
- At Work, Stay Alert! Someone Might Be Sabotaging You
- The Economy Is Taking It’s Toll On The Suburbs
- Mortgage Rates Are At All Time Low…But Are They Really?
- Online Car Shoppers Being Targeted By Criminals
- How Regular Folks Are Affected By Market Collapses
- A Personal Saving Plan – One Dollar At A Time
- New Average Credit Scores Show 40% Underqualified For Most Loans
- High Risk Auto Insurance – A Basic Understanding