5 Ways to Pay for Car Repairs

As a vehicle owner, you cannot avoid the reality that you will need to repair your car at some point. It could be due to the regular wear-and-tear or following a collision or an accident. Whether you are paying the total repair cost out of pocket or through an insurance deductible, the unexpected repair bill can significantly dent your finances. Here are some smart ways to finance your car repairs to ease the financial burden.

Utilize Your Insurance

Car insurance can be of help if the vehicle repair is a result of an accident. This will ensure you don’t dig into your pocket to cover repair costs, especially if someone else was at fault for the vehicle damage and injuries sustained. Your trusted car accident lawyer can help you negotiate with insurance companies to ensure you get fair compensation for your car accident claim.

Comprehensive insurance coverage can benefit you even if the car damage resulted from unexpected events, such as a tree falling on the hood. However, if you are only covered by collision insurance, the coverage may not shoulder the repair expenses resulting from normal wear and tear.

If you have a mechanical breakdown insurance (MBI) policy, it can help cover some repair costs caused by routine vehicle operations. Confirm with your insurance carrier to determine if it covers the repair.

Tap Your Emergency Fund

As always emphasized, your emergency fund should be easily accessible to cover unexpected expenses such as this one. If you are unable to pay for the repairs out of pocket with cash, taking some money out of your emergency fund to cover car repairs can be a viable solution.

This can work perfectly if you need to perform car repairs urgently and don’t have the time to deal with insurance companies or apply for financing. Be sure to build your emergency fund back after the repair to stay ready for other emergencies.

Take a Personal Loan

While some people often overlook taking a personal loan as a way of getting cash fast, it is actually one of the best ways to finance unexpected car repairs due to its lower interest rates. Personal loans feature equal monthly loan installments, and lenders rely on factors like creditworthiness and credit score to award these loans.

Many lending institutions have streamlined the application process for personal loans, enabling them to disburse loan funds quickly. Due to the fixed monthly payments and interest rates, it is also easy to budget for such money.

Check the Financing By Auto Repair Shop

Confirm with your local auto repair shop to see if they provide any form of automotive repair financing. The best starting point is to request a written quote detailing the kind of repairs your vehicle needs, how the mechanic intends to fix it, and the total cost. Negotiate to get a discount or see if they can allow you to pay the repair costs over time through a payment plan.

Use a Credit Card

If all other options seem not to work for you, you can opt to use a credit card. However, proceed with caution to avoid locking yourself in excessive credit card debt. Credit cards carry high interest rates; thus, you must ensure you pay them in time to avoid driving up the original car repair costs.