Your car is among your most significant investment. You might even consider it your baby. However, even with proper care and maintenance, a trip to the repair shop will be inevitable. The entire ordeal can take a few hours to a few days, depending on the issue. But if your beloved car had already made an auto transmission repair shop its second home, it might be time to decide on a few things.
Are you torn between replacing your car and taking it to the shop for yet another repair? First thing you need to do before you decide is crunch some numbers. Ask your local mechanic for an estimate of the total repair cost. Then, consider the current value of your car minus the repair. You can also use a car value estimator online. For example, the total costs of repair is $800, and your car costs about $5,000, then it would total to $5,800 after repairs. If you’re thinking of selling it soon after the repair, then you have a higher chance of breaking even. Otherwise, you’ll want to consider replacing it.
If you do decide to keep it, your next concern is to find ways to fund the repairs. Here are some methods you could explore:
Car Title Loans
For this type of financing, you will use your car’s title as collateral in exchange for the funds. One is expected to pay your lender back after 30 days. After making the payment, you can retrieve the title. However, failure to pay back your lender can lead to repossession of your car. To avoid this, you can pay a fee to delay the due date.
Another way to finance your car repair is by applying for a personal loan. This type of installment funding allows individuals instant financing, as long as you have a good credit history. Once approved, you’ll usually receive the funds within the next business day. The great thing about this type of financing is that one does not need collateral just to get approved. You can borrow up to $20,000 payable for 35 years.
Cash Advance Loans
With this option, you get to pay for your car repair on your next payday. This is basically borrowing against your employer by seeking an advance on your next salary. You may need to issue a postdated check, which will usually cover the total repair costs. But one should be careful when using a cash advance – there is some risk that you might end up with no funds on your next payday. Also, a bounced check can lead to some hefty fines.
You can also use your credit cards to pay for unexpected car repairs, especially if your financial institution offers a warranty on bad auto repairs. Make sure to keep up with your payments, though, or face large interest fees.
Each car repair financing option has its pros and cons. Before choosing, always consider the risks and benefits. Check whether or not taking your car for another repair seems a more sensible idea than replacing it. You wouldn’t want to end up applying for a loan if you’ll soon need to take it to the shop for another repair.