Nobody wants to get into a situation where their car breaks down and they don’t have the money to fix it. If this happens to you, don’t panic! There are ways to get the money you need quickly, e.g Now 1000 euros credit so you can get your car back on the road. In this blog post, we discuss five steps that will help you get the money you need for car repairs. Follow these steps and you’ll be well on your way to fixing your car and getting it back on the road!
Car breakdowns: The stats you need to know
Car breakdowns are always frustrating, especially when you’re short on cash. But whatever the case, you need to figure out what the problem is considering the amount of money you used to make the purchase. For example, according to CarGurus, a van costs $34,284, a BMW $35,549 and a Chevrolet averages $30,581.
The amount used to buy the car is high and hence you need to maintain it well to survive longer. Car repairs are inevitable. Every once in a while your car has a flat tire that requires repairs.
one Report by Statista showed that approximately 234,700 auto repair and maintenance centers had a presence in the U.S. in the last quarter of 2020, up 0.9% year over year.
So how can you raise the money to buy the auto parts or avail the auto repair service?
How to get money for car repair quickly
There are various sources to get quick money for car repairs. The quickest and most effective option is your emergency savings. This option is interest-free and easily accessible. But it’s not always like we have the savings on hand. The savings may be in a fixed account where they are not available, or if available they may not be sufficient.
How will you deal with this situation? You can take out a loan. Here are some examples of auto repair loan types to consider.
1. Personal loans for car repair
Personal auto repair loans are types of installment loans where borrowers borrow a specified amount and pay back in installments. The total amount you pay for the installments will be more than the amount you borrowed because of the added interest. Personal loans have an average interest rate between 9% and 36%.
To be approved for the loan, you must have good credit. A good credit score is 750 and above, but you can still get a pretty good deal with a score of 720.
If you have a lower score, you can consider options such as securing the loan with collateral such as your car, hiring a co-signer, or applying for a personal loan if you have bad credit. However, the latter option will have high interests, but it can help.
You can get personal loans anywhere from one to seven days depending on the type of lender you are borrowing from. The loans can be accessed from traditional banks, online lenders, and credit unions.
2. Credit cards
Credit cards are the type of revolving credit that gives you access to funds as long as you continue to make the regular payments when they are due. Interest rates vary and are calculated as the funds in the borrower’s account are used.
Again, credit cards can be used to buy almost anything, including auto parts. If you need a loan for an auto repair, you can consider the credit card cash advance option, which gives you a loan against the balance in your account. However, the interest rates are relatively higher than regular credit cards.
If you manage to deposit the entire balance on time, you will receive 0% introductory interest, ie no interest is charged on normal credit cards. Also, paying out the loan on time increases the chances of increasing your credit limit.
However, you can carry your balance over to the next month, but you will incur additional interest which, if you’re not careful, can send you into a loop of debt.
3. Payday Loans
Payday loans are short-term loans that come with a very quick approval time and little documentation. The only requirements you will be asked for are your proof of identity, proof of stable income and an active account for depositing the funds. Loans can be granted in minutes to an hour after the application is submitted.
These loans are unsecured, so no security is required and no credit checks are performed. They can be used for anything including paying for auto glass repair or any type of auto repair you have. The amount granted varies by lender, but getting a $1000 loan now is normal.
Well, they may sound so perfect, but the main downside is the high interest rates that are included. They typically have an APR of over 400%, which means for every $100 borrowed, you’ll be billed an additional amount of between $10 and $30.
The high interest rates can lead you into a huge cycle of debt if you don’t plan your repayments well, so you need to be careful when getting these loans. But if you have a good repayment plan, car repair payday loans can be a good option.
4. Personal Credit Lines
Personal lines of credit are similar to credit cards in that they are also a type of revolving credit. That means you have access to some funds as long as you make regular payments with the interest included. Interest rates are calculated based on your usage and are therefore variable. Smaller amounts incur lower interest rates.
The personal lines of credit are unsecured, which means that the risk of default is quite high. Because of this, the loans have fairly high interest rates, but not as high as payday loans. However, their approval period is longer than the payday loans. The funds can be accessed via line of credit checks or bank transfers.
5. Title Loan
Title loans are short-term loans that must be secured during the application process. You can use your car as collateral where the car goes through a verification process to determine its value. The loan will then be granted to you depending on the value of the car. The amount is between 25% and 50% of the vehicle value.
Title loans can be applied for physically or online. However, even with an online application, you must bring the car to the physical credit institution for inspection. You must also have proof of ownership of the car, car insurance and a driver’s license.
Title loans have an average APR of 300%, so they’re pretty high. Be careful with the high interest rates that come with it to avoid defaults and the resulting negative consequences.
Getting money for car repairs is not difficult. You need to do your research to find the best option that most closely matches your situation.