If you’ve been in an accident and your car needs major repairs, it’s not safe to continue to drive your car without fixing it first. So, you’ll need to bite the bullet and take your car to a mechanic.
If the costs are too difficult to manage without financial assistance, there are options you can consider including a car repair loan.
In this article, we discuss car repair loans, other finance options, why getting your car repaired is so important, and ways to avoid costly car repairs in the future.
What is a car repair loan?
A car repair loan is a personal loan specifically designed to cover the expense of car repairs. By applying and getting approved for a car repair loan, you can receive the cash you need to cover the costs of repairing your car, and repay the loan over a manageable time period.
Personal loans have some key benefits, including:
- Competitive interest rates;
- Structured repayment terms;
- Flexible borrowing amounts;
- Quick outcomes.
What are my other finance options?
If you’re not sure a personal loan is suitable for you, there are some other finance options you might like to consider instead. Specifically, you might choose to use a credit card to fuel the expense instead.
A credit card functions similarly to a car repair loan in that it allows you to borrow money. However, a credit card is different in a few key ways: it’s a revolving line of credit, you don’t need to specify what you’re using it for, and there is no set date it has to be paid off.
Car repair loan vs. credit card
With these two finance options considered, you might be wondering: which should I use to cover my car repairs? Both can be great tools for managing larger expenses, but they function slightly differently.
So that you can get a better idea of the pros and cons of each option, here’s a comparison table:
|Car repair loan||Credit card|
|You receive a set borrowing amount to pay for car expenses that has been deemed manageable for you.||You might have a limited borrowing amount depending on the credit card limit and amount already used.|
|You have structured repayment terms and make equal payment instalments until the total amount has been paid off.||You have flexible repayment terms and are only required to meet your minimum payment amount each month.|
|There are some highly competitive interest rates available for personal loans. If you shop around, you can likely find a low interest rate to make the total repayment amount lower.||While there are credit card options with competitive interest rates, many credit card providers charge higher interest rates than personal loan rates. However, if you pay off the total balance of your card within the interest-free period, you typically won’t be charged interest.|
|Applying for a personal loan is typically a relatively quick process. For example, Jacaranda Finance aims to deliver loan outcomes within 60-minutes.||While applying for credit cards and receiving your outcome can be faster, unfortunately, credit cards also need to be dispatched. This means that the process typically takes longer than it might take to get a personal loan.|
What are some typical car repairs?
If you’re interested in learning what the most common car repairs are, here is a quick snapshot of the ten most common car repairs in Australia:
- Front windscreen replacement;
- Air conditioning re-gas;
- Front brake pad replacement;
- Tyre replacement;
- Battery replacement;
- Rear brake pad replacement;
- Clutch replacement;
- Spark plug replacement;
- AC compressor replacement.
How to avoid costly car repairs
If you want to avoid unnecessary trips to the mechanic, there are some easy ways to maintain your car that could end up saving you thousands:
- Check your tires;
- Change your oil;
- Check your fluids;
- Test your lights;
- Replace the windshield wipers;
- Change your engine air filter;
- Wash your car;
In addition to these easy car maintenance tips, there are some other things you can do to ensure your car is healthy and protected from hefty mechanic bills.
Don’t avoid the mechanic
In order to avoid major problems, don’t miss your regular servicing and necessary checkups. If you miss these, they might not detect major problems with your car until it is too late. This will not only be more expensive to repair, but it can be dangerous for you to be driving.
Consider car insurance
You could also consider getting car insurance to avoid a major cost in the case you’re in an accident. To give you a brief synopsis, there are four main categories of car insurance: compulsory third party (CTP), third party property damage, third party fire and theft, and comprehensive car insurance.
Why are car repairs important?
Getting your car repaired when it needs to be is really important. Mainly, it’s important because it maintains your safety, boosts your car’s performance, saves you money (in the long run), could lower the cost of fuel, and keeps your car’s value intact.
Don’t put off getting your car repaired when you need it. Make sure you do your research to find the best deal on a car repair loan or credit card, and consider whether the product is suitable for you.