Most Expensive Car Repairs: Is Getting A Loan Worth It?

Name: Most Expensive Car Repairs | Jacaranda Finance
Brand: Jacaranda Finance
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Car repairs can rack up a hefty bill. Which ones are the most expensive?
Last modified: 29th August 2024
Hope Turner | 10 mins read

Hope Turner

Marketing and Communications Coordinator

Hope is Jacaranda’s Marketing & Communications Coordinator. With several years of copywriting experience specialising in Social Media content, she is responsible for writing and updating website content and articles, updating social media, and everything in between!

You can get in touch with Hope via hopet@jacarandafinance.com.au.

1. Oil leaks

As oil leaks can cause some severe structural damage to your car, they are not something to put off getting looked at. However, locating the leak can become quite complex, meaning it’s often a pricey procedure.

Why is my car leaking oil?

O il could leak from your car for many reasons, including when the gasket (the sealant that keeps the oil inside the engine) wears down, a stripped or leaking drain plug, or a leaking ring or valve seal.

The latter is the most concerning, as the oil will not explicitly leak outside the engine unless there are holes in your gaskets. An internal oil leak will occur instead, which can often emit thick smoke from your exhaust.

How much does it cost to repair an oil leak?

Oil leaks cost, on average, anywhere between $400 and $1,000+. Some expenses are minimal, like the gasket plug or oil filter. However, repairing more extensive parts could cost thousands: replacing the head gasket can cost upwards of $3,000.

2. Air Conditioning Compressor

We all know that in hot Aussie summers, the air conditioning in the car can be crucial. So when it breaks, it can feel like the end of the world. There are many different issues that could be causing issues for your cars aircon. Anywhere from a clogged filter to a full evaporator repair.

The most common issue is a compressor needing a repair. It's the heart of the system as it pumps everything around the air conditioning unit.

How much does it cost to replace an air conditioning compressor?

The average cost to repair your aircon is around $1,160, this can depend on how severe the issue is. Smaller issues like a clogged filter or a leak will only be around $100-$200.

3. Camshaft replacement

The camshaft is a long rod that opens and closes valves in the cylinder head. As with all moving parts of the engine, the camshaft can have potential issues. Though not as common as an oil leak, camshaft repairs are not too few and far between.

Some symptoms of camshaft issues include backfiring, loss of engine power and a tapping noise from the top of the engine. These symptoms are pretty common for most engine issues, so it will take a professional to diagnose properly.

How much does it cost to replace a camshaft?

The actual parts for most models could come to around $200 to $500 for the camshaft, plus related costs for seals and gaskets. The labour is the most expensive part of the camshaft replacement. Expect to pay around $1,000 to $3,000 for the labour costs.

Unfortunately, not having it properly installed can cause further issues and is one of the main reasons camshafts have issue s in the first place.

4. Transmission

Your car’s transmission is essentially what changes the gears when your vehicle is going at a certain speed. The two types of transmissions are pretty familiar: manual and automatic. A manual transmission consists of the gearbox and clutch, while an automatic transmission relies on the torque converter to change gears.

The transmission keeps you in control of your car, so it’s essential to get it serviced regularly and be wary of any problems.

How much does a transmission repair cost?

A basic transmission repair can cost anywhere between $200 and $500, depending on the repair's complexity and the car's make and model.

An extensive repair, however, could set you back a couple of thousand dollars. If your entire transmission needs multiple complex repairs or an entire replacement, you could be looking at a receipt from $1,000 to $5,000.

5. Full Engine Replacement

If your car’s engine has flatlined, and the mechanics deem it unsalvageable and necessary to replace, you could be digging pretty deep into your pockets to cover the cost.

How much does a full engine replacement cost?

There are a couple of options for engine replacements. According to Airtasker, replacing an engine could cost between $1,000 and $4,000.

Probably the most popular option is to purchase a rebuilt engine, which will set you back around $4k. This is more expensive than picking up a used engine from somewhere like a scrapyard, which could set you back closer to $1,000 but it is also more reliable.

Rebuilt engines are the usual choice as during this time, the engine is closely inspected and cleaned, while worn-out or damaged parts are restored or replaced, making it seem as good as new

The other option is to get a brand-new replacement. However, this could dramatically increase the price to around $10k, depending on the car you drive.

Should I replace my engine or just buy a new car?

This is a major question on the minds of many with cars that need major repairs. Is it worth paying for repairs or simply buying another car? Which one is cheaper, and which one will I get more value from?

Insurance company NRMA lays out some helpful steps to think about when you’re in this dilemma:

Get three quotes: get quotes from different mechanics on how much the car repairs could cost.
Do some research: find out what the make and model of your car would normally cost.
Weigh up the expenses: If the cost of repairs is higher than the market value of your car, it might be worth considering a reliable replacement car
Warranty: is your car still under warranty? If so, it could be worth going through the repair process as the manufacturer will cover it.

If you’re in the market for a replacement car, consider applying for a Jacaranda Finance new or used car loan. You could receive up to $25,000 for your next set of wheels.

6. Hail damage

Australia is no stranger to the odd, unpredictable hail storm, and though many car owners will rush outside to strap on a mattress or blanket the bonnet in pillows, sometimes it’s just too late. Assessing the damage after a hail storm is heartbreaking, but repairs are essential, especially if you want to keep your car’s value as high as it can be.

How much do hail damage repairs cost?

Depending on whether the damage is localised or at multiple sites (the latter is more common as hail strikes at random), your hail damage could cost anywhere from $500 to $10,000, maybe even more.

In some cases, it could be more economical to write off the car entirely.

Does insurance cover hail damage?

Comprehensive car insurance, aka the top-level car insurance in Australia, is most likely the only insurance that will cover most or all of the costs of hail damage. Even then, there’s a lot of waiting on hold with the insurer as you and everyone in a 10km radius of you could have experienced the same damage.

If your insurance is less than comprehensive, such as compulsory third-party (CTP) insurance, you may have to pay for hail repairs out of pocket.

Is getting a loan for car repairs worth it?

A hefty bill from a mechanic can feel like the end of the world, especially as the more expensive the fix, the more crucial it is to get done. Safety on the road is of the utmost importance, which is why we offer fast and flexible car repair loans.

We know that car repairs can be expensive and unpredictable, and not everyone has the means to budget for them ahead of time. So, if you’re up the mechanical creek without a paddle, Jacaranda Finance can help.

If you need funds quickly to sort those fixes, you can apply in as little as 5-12 minutes¹ and receive an outcome on the same day². Even better, you can check if you qualify beforehand without impacting your credit score at all.