No one wants to be in a situation where their car breaks down and they don’t have the money to fix it. If this happens to you, don’t panic! There are ways to get the money you need fast, like getting a Loan 1000 dollars now so you can get your car back on the road. In this blog post, we will discuss five steps that will help you get the money you need for auto repair. Follow these steps and you’ll be well on your way to fixing your car and hitting the road again!
Car breakdown: the statistics you need to know
Car breakdowns are always frustrating, especially when you’re short on cash. But whatever the case, you’ll have to figure out what the problem is given how much money you used to buy it. For example, according to CarGurus, a minivan costs $34,284, a BMW costs $35,549 while a Chevrolet costs $30,581 on average.
The amount used to buy the car is high so you will need to maintain it well to survive longer. Auto repairs are unavoidable. Every once in a while, your car will suffer a flat tire that will require repair.
A Statista report showed that in the last quarter of 2020, approximately 234,700 automotive repair and maintenance centers were present in the United States, indicating a 0.9% increase over the previous year.
So how can you get the money to buy the auto parts or get the auto repair service?
How to get fast money for auto repair
There are different sources to get quick cash for auto repair. The fastest and most effective option is your emergency savings. This option is uninteresting and easy to access. But it’s not always that we have the savings available to grab. Savings can be in a fixed account where they are not available or if they are available they are not enough.
How are you going to handle this situation? You can consider taking out a loan. Here are some examples of auto repair loan types to consider.
1. Personal auto repair loans
Auto repair personal loans are types of installment loans where borrowers lend a certain amount and repay it in installments. The total amount you will pay for the installments will be more than the amount you borrowed due to added interest. Personal loans have an average interest rate between 9% and 36%.
To be approved for the loan, you will need to have a good credit rating. A good credit score ranges from 750 and up, but you can also get a pretty good deal with a score of 720.
If you have a lower score, you can consider taking options such as securing the loan with collateral like the car, getting a co-signer, or getting bad credit personal loans. This last option will however have great interests but it can help out.
You can get personal loans between one and seven days depending on the type of lender you borrow from. Loans are available from traditional banks, online lenders and credit unions.
2. Credit cards
Credit cards are the type of revolving credit where you will have access to funds as long as you continue to make regular payments when needed. Interest rates vary and are charged when funds in the borrower’s account are used.
Again, credit cards can be used to purchase almost anything, including auto parts. If you need a loan for a car repair, you can consider using the credit card cash advance option where you will get a loan from the funds in your account. The interest rates will however be relatively higher than normal credit cards.
If you manage to pay off the entire credit on time, you will benefit from introductory rates of 0%, which means that no interest will be incurred on normal credit cards. Also, paying the credit on time will increase the chances of getting your credit limit increased.
However, you can carry over your loans to the next month, but you will incur additional interest which, if you are not careful, can put you in a cycle of debt.
3. Payday Loans
Payday loans are short term loans that have a very fast approval time and little documentation included. The only requirements you will be asked are your proof of identity, proof of stable income and an active account to deposit the funds. Loans can be granted from minutes to an hour from the time of application.
These loans are unsecured, so no collateral is needed and no credit check is done. They can be used for anything, including paying for auto glass repair or any type of car repair you have. The amount granted varies by lender, but it is normal to get a loan of 1000 dollars now.
Well, they may look so perfect, but the main downside is the high interest included. They typically have an APR over 400%, which means you’ll be charged an additional amount of between $10 and $30 for every $100 borrowed.
High interest can leave you in a huge cycle of debt if you are not well planned on repayments, so you need to be careful when getting these loans. But if you have a good repayment plan, auto repair payday loans can be a great option.
4. Personal lines of credit
Personal lines of credit are similar to credit cards in that they are also a type of revolving credit. This means that you have access to certain funds as long as you make regular payments with interest included. Interest rates are calculated based on how much you use so they are variable. If you take smaller amounts, you will incur less interest.
Personal lines of credit are unsecured, which means the risk of default is quite high. For this reason, the loans have fairly high interest, but not as high as payday loans. Their approval period, however, is longer than payday loans. Funds can be accessed through credit checks or wire transfers.
5. Securities Lending
Title loans are short-term loans that must be secured upon application. You can use your car as collateral where the car will go through a screening process to determine its value. The loan will then be granted to you according to the value of the car. The amount varies between 25% and 50% of the value of your car.
Title loans can be applied physically or online. However, you will still need to bring the car to the physical lending establishment for inspection, even when applying online. You will also need proof of car ownership, car insurance and a driver’s license.
Title loans have an average APR of 300%, so they are quite high. You need to be careful about the high interest involved to avoid missed payments and the negative consequences that come with it.
Getting money for auto repair is not difficult. You will need to do your research to find the best option that closely matches your situation.