Firestone oil change costs are pretty affordable and the same can be said for Midas and Meineke but when it comes to repairing the engine, replace the transmission, or repair the brakes and get the wheels re-aligned people complain about really high prices.
Auto Repairs Cost a Lot of Cash
There’s no doubt that heavy-duty car repairs and parts replacement cost a lot of money. If you’ve got bad credit or you haven’t invested in car repair insurance then you can expect to see thousands of dollars crawling out of your pockets.
A standard car engine costs anywhere from $2,300 to $20,000 and the job to swap it with your old engine can cost another $2,000, depending on the type of car. Just imagine how difficult it would be to pay $5,000 to $25,000 entirely in cash.
Facing the Old Financing Issue
Auto repair financing is an option for people who really need to get a repair job but do not have the cash at hand to get it done in time. You might have already used your savings to pay your mortgage or get out of bankruptcy so paying for car repairs may already be out of the question.
Some people want to get a loan to pay for auto repairs but they might have bad credit, no credit history, or a history of bankruptcy that makes it harder for them to get approved. Others are just too young – many banks and creditors don’t give loans to drivers under 25.
This makes it quite difficult for a lot of people to get the cash they need to get their cars running, especially if the repairs aren’t for damages caused by a car accident. Car accidents are covered by auto insurances but paying for an old engine or to replace damaged interiors often have to be paid in cash.
For a lot of people that’s just not reasonable. If you can’t afford to pay over $4,000 for an engine replacement and you can’t get a bank loan due to a bad credit card, what then can you do? The solution is to turn to auto repair financing loans.
Turning to Auto Repair Financing
Auto repair financing gives you a loan so you can get your car repaired but this type of loan is quite different from conventional loans. It doesn’t always look into your credit score and credit history. It won’t matter if you’ve faced bankruptcy before or if you have an unpaid loan somewhere else.
The only four things that matter when applying for an auto repair loan are:
- The car has to be no older than eight years old
- Proof of steady income like previous invoiced and paycheck records
- Car insurance
- Title for the vehicle
They don’t need to look into your credit history because instead they rely on your current ability to pay. They’ll look at how much you earn and how much you need in order to calculate a decent loan plan for you. You pretty have a 90-100% approval rate with these financing options.
There is a Catch
However, there is quick catch that you will need to be aware of. If you don’t pay your loan on time then they can penalize you severely. You might find interest rates suddenly shooting up over 600% or you might even have to give up your car as collateral for the unpaid loan.
This can make auto repair financing scary but so long as you pay the right bills on the right time then you’re in no grey area of trouble. All you have to do is pay properly and there won’t be anything to be worried about.
A lot of people fear taking these kinds of loans because they think that the financing company might do everything in their power to make sure you pay even higher interest rates.
Should You Turn to Auto Repair Financing?
If you’re just worried about Jiffy Lube oil change prices or any other minor repair and maintenance job then you may not have to get auto repair financing. These jobs normally don’t cost over $70 to begin with so it is very likely you’ll be able to cover them without having to get a loan.
If you are dealing with major damages and need heavy-duty repairs such as replacing an engine or replacing an entire oil line of pipes and spurts then you will need additional financing to make sure everything is paid for and covered in order to get the car repaired and running as soon as possible.
It’s true that there is a financial risk, especially for people who don’t follow up with their scheduled payments for loans and bills, but smart borrowers can take advantage of this opportunity.