Whether you’re dealing with an unexpected breakdown or simply want to take care of routine maintenance, auto repair can be expensive.

Many lenders offer personal loans, auto loan, title loan and payday alternatives that can help cover the costs of auto repairs. Learn about these options and how to shop without affecting your credit score.

Affordability

Many car repair shops offer financing or payment plans through a lender to make auto repairs more affordable. Typically, this type of lending falls under personal loans and involves an application process, loan requirements (like proof of income and creditworthiness), a set loan term, monthly payments, and an interest rate. A few common auto repair financing options include:

An unsecured personal loan: An unsecured personal loan is one that doesn’t require you to put up any assets or property as collateral. It’s available to borrowers with a range of credit scores and offers flexible repayment terms to help you manage the costs.

A secured personal loan: A secured personal loan is a type of mortgage that uses your home as collateral. It is usually offered to borrowers with excellent credit and offers fixed monthly payments over a set loan term.

Borrowing from how to apply for wonga loan friends or family: This is a low-cost option but requires good communication and on-time payments. It also may strain relationships. Warranty coverage: If your vehicle is still under a manufacturer’s or extended warranty, it may cover the cost of some repairs.

Fast Approval

When your car breaks down, you need it to get to work or school, pick up groceries or run errands. So, getting it repaired isn’t something you can afford to put off. Luckily, you can get a personal loan to pay for auto repairs without damaging your credit score. These loans are available from a variety of funding sources, including banks, credit unions, and online lenders. They also often offer lower rates than traditional loans. Plus, they can be approved faster.

If you’re looking for an auto repair financing option with quick approval, consider applying for a loan through your local credit union. They’re often easier to qualify for than a traditional bank and can offer lower interest rates, especially for people with bruised credit. Plus, you can typically apply and receive funds in less than an hour.

Whether you’re a new or existing auto repair shop owner, identifying the right small business loan for your shop can be challenging. That’s why Industry Funding guides can help you understand your options and choose the right type of financing for your needs.

Flexible Payment Options

When it comes to car repair costs, financing options are a convenient way to cover expenses without draining your savings or resorting to high-interest credit options. Personal loans for auto repairs are typically unsecured, meaning you don’t need to guarantee the loan with any collateral. With competitive rates and flexible repayment terms, these loans are a great alternative to other auto financing options such as credit cards or mechanic payment plans.

You can find personal loan lenders offering car repair loans online, in-person at banks or credit unions, and through some online marketplaces. Most personal loan lenders offer a quick application process with online tools to help you provide all the required information quickly and easily. Some also offer a pre-qualification option that allows you to check your rates without having to impact your credit score.

Additionally, some auto repair shops partner with a 3rd party provider to offer customers financing solutions. Many of these providers allow customers to apply for an auto repair loan online or in-person at the shop, with decisions typically made within minutes to a few days. Depending on the solution you choose, some lenders may even offer early payment discounts to incentivize faster payments that can reduce interest charges and improve cash flow.

No Collateral Required

When it comes to financing auto repair, there are many different loan options. Some are secured with collateral, such as your vehicle or a portion of the blue book value of your car. Others are unsecured personal loans that depend on your credit score and debt-to-income ratio to determine eligibility. You can also use a credit card, which typically has lower interest rates than other loan types but requires a minimum monthly payment.

Some lenders offer an online application that can help you find the right loan. Advanced algorithms take a broader look at your finances to create an offer tailored for you. Then, you can select the amount and repayment terms that work best for your needs. The requested funds are then electronically deposited into your account.

While an auto repair loan can provide the money you need for a quick fix, it’s important to compare all of your options. Choosing the right loan will help you avoid unnecessary expenses in the long run.

Non-loan forms of funding, such as merchant cash advances, can also provide a fast infusion of working capital. This can allow you to purchase the parts and technology needed for repairs, hire new staff, or market your shop. However, these types of loans are often short-term and may have higher rates than a bank or SBA-backed loan.