How do you deal with paying for expensive repairs to your car? Of course prevention, maintenance and safe driving are key. Damage from an accident, even a dent or some other type of damage, that it can cost a lot. A lot of people don’t have the money to pay for repairs on their own, and don’t have the skills needed to fix their car themselves. It can feel like there are no options.
Loans
If you want to be able to pay for your own emergency car repairs, then you should look into getting a personal loan. A good way to do this is to get a personal loan and use it to pay for the repairs you need. You will have to take care of making sure you pay off the loan within the time frame that the loan is for. Cash advances usually do not have the most friendly loan terms, so be wary of this option.
The most important thing you should do is make sure you can afford the loan. If you can’t afford the loan, then don’t take it. If you have bad credit, you most likely don’t even have this option. Bad credit? Then you have to have enough in your bank account to pay the loan back before they will even think about approving you.
What makes a good loan? Usually a good personal loan is one with a very low interest rate. Look carefully at the loan terms, and make sure that you are looking at the APR, which is the Annual Percentage Rate. A good loan should also come with very flexible repayment terms. If you can get a loan like that like that, then a loan can help you a lot.
The thing to remember about these loans is that you can get one and they actually let you get away with getting more than what you need. Just keep in mind that you could end up paying even more money. Instead, get a loan for the smallest amount possible – not the amount that they approve you for! Don’t take the first thing that comes your way, you may find that there is something better out there for you.
Extended Auto Warranties
If you don’t qualify for a loan, then you may want to check into getting a vehicle service contract. This will help you to repair your car while saving you money at the same time. These are called “Extended Auto Warranties” in most states, and called “Mechanical Breakdown Insurance” in California.
When thinking about getting an extended warranty on a used car, you might have different options – depending on the state that you live in. The criteria for a good extended warranty company are reputation, monthly payment options, and no waiting period. Gogetolive.com is an option that you’ll want to check out.
If you get regular maintenance done on your vehicle, you will end up saving quite a bit of money over time. Safe driving is also important! The warranty companies will charge you a higher amount if your car is involved in an accident. They may also increase the amount for repairs you need to get done.
Insurance
Of course also do make sure you have car insurance on your vehicle. It may seem obvious, but it can help you a lot when you get an accident, if you are insured properly. Most states allow two kinds of insurance coverage: Comprehensive and Liability. Comprehensive coverage is the Gold Standard, with everything covered: Damage to any vehicles or persons comes with some sort of coverage. But don’t forget that you likely have a deductible. Paying that deductible means a large expense in itself sometimes. So read through your policy carefully and avoid running into a big surprise down the road.
With Liability coverage, you are covered for damage to other vehicles – and typically for bodily injury – but not covered at all for your own vehicle. This means you will be entirely responsible for the potentially VERY expensive repairs on your own vehicle. These could exceed the value of your vehicle, or not even be possible.
Even if the other party in the accident is not injured, he can sue you. So as mentioned before, always drive carefully and make sure that your vehicle is properly maintained!
Credit
Have a clean driving record and keep your credit in great shape. You might find that some of the companies will charge you more for auto insurance because of bad credit. Poor credit can cause you to have to pay for some of the repairs that you have to get done. If you have fewer credit options, you are very likely to pay more.
Most repair shops have credit options available, but none are what most would call a good rate. Even if you were able to pay in full for your auto repair, you are likely to be offered their house brand of credit card – with the cashier getting a bonus based on your signup! So beware of this type of credit to keep expenses down.
Make sure that your credit report is checked periodically. Your lenders certainly will! Most lenders will run a credit report once a year. This will let them know if you are still able to make all of your payments and keep up to date with your bills. It will also let them know if any outstanding accounts you have are current. Make sure that you also check your credit report every year. You will want to note any mistakes in reporting, and dispute anything you have a valid reason to dispute. The longer an error is on your credit report, the more difficult it will be to remove.
If you keep in mind a few simple tips, you will be able to save a ton of money on repairs to your car. Car repairs tend to be expensive financial emergencies, but you can get through them with personal loans, insurance, an extended auto warranty, or other credit options.
