Car repair bills can sometimes be more than you expected. If you do not have enough cash to pay for them outright, it would be challenging for you to have complete control over your finances unless your financial situation ameliorates. While there are some loans you could take out to cover your car repair expenses, lenders might be disinclined to approve your loan application, especially if you are already on a high-cost car loan. Even if you manage to get low interest car loans, your lender would consider your overall financial situation to decide approval.
You cannot always rely on loans when you have insufficient cash to pay your car repair bills. If you fail to oblige payments, a garage can keep your car, and they have the right to lien it in case your payment is 30 days past due. You cannot take it back unless the whole cost of the repair is settled.
You can contact your insurance company if repairs are needed as a result of inclement weather, vandalism and accidents, but it depends on the policy you have bought. On no account can you hold your insurance company responsible for footing repair bills if there is no such clause in the coverage.
Ways to pay for car repairs in case of insufficient money
If you find that your car repair bills are more than you expected and you do not have enough budget to pay for them, you should consider the following repair charges:
Consider a cheaper alternative
This option is viable only before the entire repair work is done. When you are not so certain about your budget and repayment capacity, you should get an estimate from your mechanic. If you find that the estimation is higher than you thought, you should ask your mechanic for cheaper alternatives.
1. Is it possible for them to use secondhand parts to repair your car? Reconditioned parts undoubtedly save a lot of money. For instance, gearboxes and AC compressors can be employed despite being reconditioned.
2. Are you completely sure that your mechanic has knowledge of fitting used parts properly? Some mechanics hesitate to fit used parts.
However, it is vital to note that you cannot claim any guarantee or warranty period.
How about repair in phases?
It is likely that your bill is quite high because there are loads of things to be repaired. If you do not have enough money to cover the cost of your repair charges, you should consider repairing in phases. Make sure that you prioritise urgent repairs. For instance, if you have to get changed brake oil or have fixed an issue with brakes, make sure that you get them done as soon as possible. This is because they could put your safety in danger.
Not all car repairs need immediate attention, but this does not insinuate that you will keep putting them off. Minor problems will worsen your car’s condition over time. It is enjoined that you should ask your mechanic what can be postponed and what should be done urgently. Do not forget to ask about the consequences of postponing some repair work.
Ask if you can pay in instalments
Some garages offer instalment schemes in order to help those who cannot pay for repair bills outright. Paying your bill in instalments is better than not paying at all. If you are unable to pay for your bill outright, ask your mechanic if they will let you pay in multiple instalments. This would make it easier for you to handle payments.
There is no guarantee that your mechanic would agree to your proposal because there is a high risk of default. Some might be willing to accept payments in instalments, but you will have to sign an agreement. You will have to pay interest as well.
Use your credit card
If you have a credit card, you should try to consider making the payment through it. You do not have to apply to any lender as long as you already have a credit card. If your card has a balance, you can use it to discharge your repair bills. However, you will have to pay back the whole amount along with interest.
If you have a 0% credit card, you can avoid paying interest as long as you discharge your credit card bill within the interest-free period. If you miss that period, you will have to pay interest.
Since the whole amount is paid in one fell swoop, you might find it hard to discharge your credit card bill. If that is the case, try to pay the minimum balance. It would be better if you paid down more than the minimum balance. Interest will be accrued only on the unpaid balance. However, it is suggested that you pay off your credit card balance as soon as possible.
Borrow money from a direct lender
If you do not have a credit card or if your credit card does not have enough limit to help you pay your car repair charges, you should consider borrowing from a private money lender in the UK. There are various types of short-term loans that you can think of applying for in order to meet these expenses.
If the amount is so small, you will be required to discharge in one fell swoop. Mostly, lenders expect a lump sum payment if the size of the loan is smaller than £1,000. Make sure that you will not struggle to discharge your obligation on time because high interest rates will keep accruing on the unpaid balance, accumulating the debt.
The debt snowballs so quickly that you fall into an abyss of debt, which ruins your credit rating.
The final word
If you do not have enough money to foot your car repair bills, you should consider cheaper alternatives. You can also negotiate for prices or offer to pay in instalments. If these options are not feasible, you should consider using a credit card or a loan, but make sure you will not fall behind on payments.
Also read the difference between apr and interest rates on loans and credit cards.
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