How to Get Help Paying for a Car Repair
Whether you own a car, truck, van, or SUV, vehicle repairs are flat out expensive! Kelley Blue Book reports that the average car repair costs around $550, with foreign models costing even more to fix.
Because of this high cost, you may need help paying bills when taking your car in for a repair or tune-up.
Car repair loan options
If you’re like many of us who could use a little help covering vehicle repairs and maintenance, there are options you can pursue.
Cash Advance
A Cash Advance is a way to get money when you need it before your next paycheck. It gives you quick access to funds to cover unexpected expenses, like a car repair, and you repay it on your next payday or over a set period, depending on the loan terms.
Cash Advance loans are widely available from banks, credit unions, apps, and direct lenders like Advance America. Once you receive the money, you can put it directly toward your car repair.
Line of Credit
Unless you’ve leased your vehicle, you’ll be responsible for any ongoing repairs and maintenance during the life of your car. A personal Line of Credit could be a good option for covering any repairs now and in the future.
A Line of Credit is a revolving loan that provides ongoing access to a set amount of funds, kind of like a credit card limit. You can borrow any amount from your credit line up to your credit limit whenever you need — and you only pay interest on money you withdraw, not the entire amount.
Title loan
With a title loan, you give a lender your car title to hold as collateral until you repay the loan in full (you keep your actual vehicle). The value of your car determines your loan amount.
Keep in mind, however, that a title loan may not provide enough money to cover the repairs. This is because title loans are based on the appraised value of your car. Ergo, if your car is damaged, it won’t be worth as much, thus reducing the size of your title loan.
Personal loan
If you take out a personal loan, you’ll receive a lump sum of money that you can put toward your car repair. You can pay back the vehicle repair loan through fixed monthly payments over an agreed-upon term, which can be anywhere from a few months to several years. This could make a personal loan, such as an Installment Loan, easier to fit into your budget.
Pawn shop loan
If you have something valuable, you might consider taking it to a pawn shop for a loan. As with a title loan, the size of your pawn shop loan will depend on the value of your collateral item. Pawn shops typically accept collectibles, jewelry, precious metals, and other electronics.
MORE ON GETTING HELP PAYING BILLS
How to apply for a car repair loan
Shop around
Not all car repair loan options are created equal. Do your research and find a few loans that meet your needs. Compare interest rates, terms, and fees so that you understand the total cost of each loan.
Choose a lender
Pick a lender offering an auto repair loan that meets your needs. Make sure to read reviews to ensure they’re reputable.
Apply for a car repair loan
Fill out a formal loan application online or in person. Be prepared to submit documents like your government-issued ID, pay stubs, and tax forms.
Get funded
Upon approval, the lender will distribute your funds, usually via direct deposit. Many lenders offer fast funding that same day, within 24 hours, or in a few business days.
10 other ways to pay for a car repair
1. Negotiate with the auto body shop
Many mechanics offer car repair financing that can allow you to pay them back for their services over time. Some mechanics even partner with lenders that provide personal loans and credit cards.
While this may seem like a good option, be sure to read the fine print. They often advertise 0% introductory APR but will charge higher interest fees once the introductory period is over.
2. Ask a friend or family member
One option when you need help paying bills is to ask a friend or family member for help. Loans from friends and family often come with no interest, few stipulations, and a lax repayment schedule.
There’s always a risk of damaging relationships, however, so it’s important to repay what you borrow in a timely manner. With this in mind, it may be wise to draw up a repayment schedule to ensure you stay on track with your payments.
3. Dip into your emergency fund
An emergency fund is money that you can set aside to cover unexpected expenses like car repairs. This extra cash can help you avoid emergency car repair loans and save money on interest and fees.
You may store your emergency fund in a high-interest savings account or anywhere else you can access them easily. If possible, always keep three to six months’ worth of monthly expenses in your emergency fund.
4. Shop around for other offers
There’s no law saying that if you’re unhappy with one mechanic’s quote you have to stick with them. Feel free to shop around and get quotes from other mechanics in the area.
Once you have multiple quotes, you can compare your options and choose the best one. This is the same process you should go through when choosing a car repair loan, should you choose that option.
5. Sell your personal items
Depending on how much time you have before the repair bill is due, you can raise money by selling your personal items. Selling personal items is also a good way to clear up clutter around your home.
You can do this by hosting a garage or yard sale and selling as many unused items around your house as possible.
Another option is to sell one or two larger items, such as appliances, electronics, or collectibles. You can do this in person at auction houses or online through Facebook Marketplace, eBay, and Craigslist.
6. Check with your insurance company
If you want to avoid paying for your car repair altogether, you can try checking with your insurance company. Depending on the circumstances of the damage and what the issue is, your car insurance might cover the cost of the repair.
7. Work extra hours or start a side gig
Another way to pay for your car repair bill on your own is by working more hours at your job. Ask your boss for some overtime or even for an advance on next week’s pay.
If you’ve maxed out your overtime hours and your boss won’t give you an advance on your check, consider picking up a side gig. There are plenty of freelance gigs offering flexible hours and pay, including big names like DoorDash, Instacart, Lyft, and Rover.
8. Inquire about a payment plan
Although most mechanics don’t offer payment plans, it never hurts to ask. Simply explain your financial situation, offer a down payment, and ask if a payment plan is an option.
9. Look for a nonprofit
Depending on your income and financial situation, you may qualify for assistance from a nonprofit near you. Most parts of the country have churches and nonprofit organizations dedicated to helping low-income or financially strapped individuals.
Simply Google “nonprofit organizations to help with car bills near me,” and you should see some promising options. Each organization can make their own rules and regulations about who qualifies for assistance.
10. Trade services with someone
An option that most people forget about is to trade services with a licensed mechanic or someone you trust to do the work. If you have a skill that the other person finds valuable, bartering can be an excellent option.
Get your car repaired without financial worries
Don’t let money hold you back from keeping you and your family safe! The right loan could help you pay for the car repairs you need, keeping your car in good condition. Explore the options available in your state today.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.
