Blogs

What to Do if You Can’t Afford Your Car Repairs

Do not panic if you can’t afford your auto repairs. There are options that help you get your bill paid and your car, truck, or SUV back out on the road. Some options are better than other options are, so it’s important to be realistic about what you can afford when it’s time to pay back the financing. You can also look for an automotive repair shop that offers financing options, as this financing is specifically for automotive service and repairs. Green Garage European Auto Centre is one such shop.

Traditional Financing Methods

Credit Karma recommends going the traditional financing route if you can. Forms of traditional financing include bank loans and credit cards or lines of credit. The best traditional option is a personal loan from your bank, as you’ll find lower interest rates with a personal loan than on a credit card. A bank loan also gives you ample opportunity to pay off the financing. Be careful, though. As you know, the longer you take to pay back a loan the more interest you pay, as well. You only want to borrow what you need, and it’s also wise to select the shortest payback duration you can afford.

Credit cards or lines of credit are a good option if you have good credit. If your credit score is through the roof and your debt-to-income ratio is also good, you can probably secure a zero-interest credit card or line of credit to pay for your automobile repairs. Provided you pay the money back before the zero-interest-rate expires, you won’t pay any monies over and above the money you charged. You might also find a credit card or credit line with a lower interest rate than a bank loan. Even if you have an existing card with a higher interest rate, it might be a better payment option than alternative financing methods.

Alternative Financing Methods

Alternative financing methods are funding for those who have poor credit and cannot get financing any other way. As such, they come with extremely high interest rates and high risks. For example, if you take a payday loan out to pay for your automotive repairs, you’ll need to pay the entire amount back the following payday and if you can’t, you’ll face penalties that can as much as triple what you borrowed. The interest charged on these loans can also double or triple what you’ve borrowed. Title loans are the same with one caveat: You give your vehicle’s title to the lender as collateral. Not a good idea.

As mentioned above, Green Garage European Auto Centre in Winter Park, FL, offers financing options to our customers! Finance to help our customers pay for their automotive repairs. Call us today at 407-993-2180.

Menu