Each car owner is informed about the importance of maintaining an auto on a regular basis. Basic car maintenance might prevent vehicles from unexpected possible technical issues.

Regardless of it, unforeseen car damage is a frequent incident among current drivers. Furthermore, an auto repair might become a hard and crippling blow to your wallet, especially when you don't have enough funds for the needed service.

Fortunately, even though your warranty or insurance can't cover the auto repair, there are still a few options to get the needed financing. Each of them offers a specific payment plan for car repair. Take your time to get acquainted with all the options and choose the most convenient for you.

Traditional Personal Loans

Such traditional lending institutions as banks and credit unions offer you a wide range of available loan terms and conditions for covering car repair costs. It's a good option to consider in case if you have enough time to visit local branches and shop for competitive rates.

However, make sure to review all the terms and additional provisions included in your personal loan agreement. Pay particular attention to the borrowed amount, extra costs, interest rate, APR, and repayment term.

Payday Alternative Loans

In case if you don't have enough time to do extra paperwork or visit traditional lending institutions, then you might be interested in such an option as a short-term loan. The advantage of cash advance loans is their accessibility to different credit score types - let it be bad credit or no credit score at all.

The loan application process is usually handled from a mobile device or a laptop, and it takes no more than some minutes. If approved, you will get the needed financing within 24 business hours.

Payday loans are typically withdrawn on the agreed date automatically from your bank account. Although, make sure to discuss all the details with your direct lender before finally signing the agreement.

Car Title Loans

A title loan is quite an expensive option to consider when looking for car repair financing, as their typical APR is estimated at 300%. That's why this option should only be considered if you're sure you'll be able to pay off the loan amount on the due date.

Car title loan lenders usually provide you with a loan in exchange for your car title. You can get your title back right after repaying the loan amount and fees in full. Keep in mind that failing to pay can cause a vehicle repossession or additional rollover fees.

According to the CFBP statistics, one in five borrowers faces vehicle repossession because of the inability to repay his debt.

Auto Supply Store Branded Cards

Compared with usual credit cards, considering special branded cards from your auto part stores might become a good option for car repair financing.

Multiple auto shops work in partnership with other car repair service representatives. It allows customers to obtain a co-branded card and use it towards regular maintenance, urgent repairs, and even more.

Final Words

If you're struggling with unforeseen car damage, it doesn't mean you have to consider any available option for car repair financing. There are plenty of ways to cover the costs; however, each of them has its pros and cons that might differently affect the final result.

Take your time to shop around to find the most cost-effective deal. Don't hesitate to ask mechanics about pricing. And finally, start preparing your own emergency fund to avoid such an unexpected situation next time, and don't forget to regularly keep your car maintenance.

This way, you'll always be sure you're completely ready to go for a long-distance trip or participate in upcoming road race events with no worries about your vehicle condition.