Should you finance an auto repair bill? Some people don’t have a choice. They cannot drop thousands of dollars to have their vehicles repaired. AmeriFix stresses that you can avoid expensive auto repairs by sticking to your vehicle’s preventative maintenance schedule. Of course, things can still happen and they do. If you are stuck with an expensive car repair bill that you cannot afford, financing auto repair is an option.
Should I Finance?
There are several things that you must take into consideration when you answer that question. First, consider your vehicle’s remaining lifespan and resale value before you finance an expensive repair. If your vehicle has 200,000 miles on it, it doesn’t have much of a remaining lifespan or resale value. Does it behoove you to spend $3,000 to fix an automobile that isn’t worth $3,000 to a dealer or independent buyer? No, it’s not, and you’d be better to finance a newer vehicle instead if you can afford it.
If you can afford it is the operative phrase in that last sentence. When financing anything, you must consider your credit, your household budget and down payments. If you have excellent credit, you can probably secure a low-interest loan to finance your automobile’s repairs and it will be easier to pay off this loan than a loan for a new car. If you have poor credit, you might not be able to secure a loan. Either way, you must be able to afford your monthly payments and interest on any loan.
Financing Options
Let’s assume for a moment that you’ve decided to finance your car repair bill because it makes sense. Your car is newer and has a lot of life left in it. Your first financing option is a personal loan. You can head to your bank and apply for a loan to cover your vehicle repair costs. You will need good credit or a co-signer and might need collateral to secure the loan. Look for the lowest interest rate and make certain you understand fully the loan terms before you sign the papers.
If you have poor credit, you could take out a payday or title loan but these should be your last resort. Both carry with them obscene interest rates – you’ll pay back three-to-four times the money you took out. They also put you in a very precarious position if you can’t pay them back. Payday loans are due within weeks and title loans use your vehicle’s title as security. It might be better to see if your auto repair shop has credit options or to use a credit card.
Seriously, though, avoid expensive car repairs by taking your vehicle into AmeriFix in Franklin, TN, for preventative maintenance. Call us today at 615-656-4962 to set up an appointment.
