There are financing options available to drivers who cannot afford their car repairs. Some of these options are good; some of them not so much. The first step is to find out much money you need to borrow, so take your vehicle to a reliable auto repair shop such as Prestige European Auto Service. Then, with the estimate in hand, do one of the following options.
Traditional Lending
The best thing you can do is approach your auto repair financing the traditional way by taking out a personal loan or approaching a loved one for the money. Why is this best? You’ll see when you read about the alternative lending options below. If you have a loved one who would be willing to help you with your car repair bill, choose that route first because in most cases, the loan is interest-free or even a gift that you don’t have to pay back.
If you aren’t comfortable asking family or friends for money or they won’t lend it to you, approach your bank next. Banks and credit unions offer loans for numerous reasons and one of those reasons is personal, which means you can use the money for your personal needs. In this case, you would use the money for your car repair bill and that is all you should use it for. Don’t be tempted to take out extra so you can go on a shopping spree.
To apply for the loan, bring your car repair estimate and any paperwork requested by the bank. They usually ask for things like bank statements, paycheck stubs, and proof of collateral ownership. Fill out the application and, if approved, review the loan offers. Make sure you pick a loan that you can easily pay off in monthly installments and that carries a low-interest rate. Sign the paperwork and use the money to pay your auto mechanic.
Alternative Lending
If the bank rejected your loan application or you have poor credit and know it’s not worth applying for a personal loan in the first place, you can finance your auto repair bill using an existing credit card, line of personal credit, payday loan, or vehicle title loan. The problem with these financing options is they often come with high-interest rates and must be paid off quickly, especially the payday and title loans. They also carry great consumer risk.
Prestige European Auto Service repairs European automobiles. Located in Fort Lauderdale, FL, we try to keep all auto repairs as inexpensive as possible so call us at 954-358-4994 today.