Last Updated on
Since 95% of American households rely on cars, auto financing is sure to be a major part in many US citizens’ monthly budgets. Therefore, an affordable auto loan will ease your financial burdens.
Of all the auto loans, auto repair financing is a key consideration, since repair and maintenance are a regular, ongoing cost.
So, where and how can I get the best auto repair financing near me?
The simple answer is online personal loan lenders. You can literally get loans with the click of your mouse from anywhere and anytime.
However, getting the best auto repair financing depends on the process you use in determining how much to borrow and where to get the loan.
Follow this process, and you’ll certainly improve your chances of getting the best possible deal.
Step 1: Why Do You Need an Auto Repair Loan?
If you have an unexpected repair bill, and no other source of money, auto repair financing will certainly cushion you against disaster. You won’t have to interrupt your business or employment activities, just because you don’t have ready cash.
Emergency car repair loans are especially valuable, since repair bills can add on to already piling vehicle maintenance, depreciation and fuel costs.
The annual cost of owning a vehicle, which is an average of $8,469, can eat into your savings, as detailed in the following infographic.
As the infographic shows, annual car ownership costs can vary greatly based on your vehicle type, featuring:
- small Sedans ($6,354),
- minivans ($9,146),
- small SUVs ($7,606),
- large Sedans ($9,399),
- hybrids ($7,687),
- medium SUVs ($9,451),
- medium Sedans ($8,171),
- pickup trucks ($10,054),
- electric vehicles ($8,439).
(The data is based on 15,000 miles driven yearly.)
Repair bills are a significant component of the overall vehicle ownership costs.
Some of the typical repair costs include:
- Tires: A new tire may cost as little as $70 to as high as $200, depending on the car.
- Brakes: You’ll pay between $130 and $900, based on your car, model, and replacement needed (including rotors, calipers, pads, and brake fluid).
- Transmission: Fixing those crucial gears powering your drive axle from the engine will cost between $1,400 and $3,000.
Here’s a more comprehensive list of the repair costs:
|Type of Auto Repair||Cost|
|Cabin air filter||$25-$100|
|Transmission fluid flush||$75-$150|
|Engine coolant temperature sensor||$100-$150|
|Front or rear windshield||$100-$300|
|New all-season tires||$600-$800|
|Timing or serpentine belt||$500-$950|
|Suspension system replacement (shocks, springs, struts, tie rods, and control arms)||$1,500-$3,500|
You also have to deal with repairs to pass emissions testing, as well as costs not covered by insurance following accidents.
Step 2: Which Types of Car Repair Loans Do You Want?
After assessing the reasons for seeking a loan and how much you need, consider the type of loans that will serve the purpose.
Essentially, you have three main options: credit cards, payday loans and personal or installment loans.
Here’s an overview of the processing time, terms and eligibility requirements of each:
|Loan Type||Processing Time||Payback Term||Eligibility Requirements|
|Credit card||immediately||varies||open credit account with available limit|
|Payday loan||1–2 business days||1 – 4 weeks||regular income|
|Installment loan||A few days to 1 week||1 – 6 years||regular income|
1. Credit Cards
Financing auto repairs using credit cards is appealing to car owners. It doesn’t require a security deposit, and you can pay your balance monthly.
However, the average APR (Annual Percentage Rate) is a high of 17.15%. Based on your FICO credit score, you can get more affordable installment vehicle repair loans compared to that.
2. Payday Loans
Payday loans are another option that may be convenient for small amounts of auto repair financing, and car owners with bad credit.
However, the average APR for such short-term loans is typically higher than credit cards and installment loans. Therefore, if you pick this option for no credit check auto repair financing, you should limit borrowing to only small amounts that you can comfortably repay.
Also, you can’t access payday loans in all states.
You can access it in 32 states which impose little regulation: Indiana, Iowa, Minnesota, Nebraska, Mississippi, North Dakota, Missouri, Louisiana, Michigan, New Mexico, Washington, Florida, Rhode Island, Texas, Nevada, Oklahoma, Kentucky, Alabama, South Carolina, South Dakota, Virginia, Utah, Hawaii, Wisconsin, Idaho, Delaware, Tennessee, Illinois, Kansas, Alaska, Wyoming, and California.
It’s also accessible in 5 states which have such regulation as interest rate capping: Maine, Oregon, New Hampshire, Montana, and Ohio. This includes Washington, D.C. (District of Columbia).
You won’t get it in 12 states: Georgia, Arizona, Arkansas, New York, North Carolina, New Jersey, Maryland, West Virginia, Pennsylvania, Vermont, Connecticut, and Massachusetts.
Fastest Way to Get Online Payday Loan Offers In Minutes
3. Personal or Installment Loans
Installment loans, particularly online installments loans, are not only quick, but also provide sufficient financing for your needs. You can get as much as $1,000, $5,000, $30,000 and more. That makes them the ideal choice for many car owners who need major car repairs.
Essentially, you’ll be getting a personal loan to use in repairing your car, or any other personal needs.
Although you may not get installment auto repair loans no credit check, since lenders typically assess your credit, borrowers with bad credit can still get loans with higher interest rate.
Best of all, you benefit from affordable interest rates, making payment easy.
Fastest Way to Get Online Installment Loan Offers In Minutes
Step 3: Who is the Best Lender for Auto Repair Financing Near Me?
Once you have evaluated your borrowing needs and the type of loan you want, you’re better placed to select the best lenders for your needs.
In fact, all you need to do is compare the lenders’ terms with your specific needs, and you’ll easily identify your perfect match.
And the greatest benefits are convenience and time-saving of comparing multiple loan offers in minutes.
However, you first need to know if you’re dealing with reliable companies. What track record do they have? How many clients have they served? Do they have mostly positive or negative reviews? If they offer loan-matching service, do they partner with reputable direct lenders?
In this regard, the top online personal loan lenders have existed for many years, served millions of borrowers, and provided billions of dollars in loans.
From this list of the top online money lenders, you can narrow down to the ones offering the best terms that suit you, based on their individual characteristics:
|Lender||Loan Amount||APR||Turnaround time||Loan Term||Minimum Income||Maximum debt-to-income ratio||Geographical Location||Credit/ FICO Score|
|GuideToLenders||$100 – $40,000||4.99 to 35.99%||61 days to 180 months||Steady income||All US states||0-850|
|Bad Credit Loans||$500 – $5,000||5.99% to 35.99%||24 hours||3 to 36 months||Regular income||All US states||Accepts poor credit score|
|Upgrade||$1,000 – $50,000||6.87% to 35.97%||24 hours||3 to 5 years||$1,000 monthly free cash flow||60%||Not in CT, IA, CO, MD, VT, MA, and WV||620+|
|Even Financial||$1,000 – $100,000||4.99% to 35.99%||24 hours||24-84 months||$45,000 annual income||All US states||550+|
|Avant||$2,000 – $35,000||9.95% to 35.99%||24 hours||24 – 60 months||$20,000 annual income||not in CO, IA, WV, VT||580+|
|Fast5kLoans||$100 to $35,000||5.99% to 35.99%||1 month to 2 years||steady income|
|Best Egg||$2,000 – $50,000||5.99%-29.99%||24 hours||3 to 5 years||Average $80,000 annual income||35%||660+|
|PersonalLoans||$1,000 to $35,000||5.99% – 35.99%||24 hours||3 to 72 Months||$2,000+ per month||Not in Arkansas, Georgia and New York||580+|
|CashUSA||$500 – $10,000||5.99% to 35.99%||24 hours||90 days to 72 months||$1,000 monthly after taxes||Accepts poor credit score|
|Prosper||$2,000 – $40,000||6.95% – 35.99%||1 to 3 business days||12, 36, or 60 months||Average $89,000 annual income||50% (excluding mortgage)||Not in IA, ME, ND||640+|
Based on those details, you’re capable of making the best choice. You can start your search for auto repair financing right here:
Step 4: What Do I Need to Apply for Auto Repair Financing?
Once the online lender connects you with a direct lender, you’ll need to provide specific documents when applying for auto repair financing.
Depending on the direct lender, you’ll be asked for some or all of these documents:
- recent pay stubs/ payslip to verify your annual income
- working phone number or recent mail as proof of residency
- valid еmаіl аddrеѕѕ
- verifiable bank account
- valid photo identification
- credit history
- sосіаl ѕесurіtу numbеr (SSN)
If your loan application is pre-approved, lenders will also perform hard credit checks to determine your loan terms, for you to qualify for a loan.
That shouldn’t worry you, since it typically doesn’t hurt or lower your credit score in the long term. Reporting agencies are aware that people compare multiple loans when shopping for auto repair financing. Hence, the three top credit reporting agencies roll multiple loan inquiries into one, within a 14-30 day cycle.
Step 5: Should You Make Major Repairs or Buy a New/ Used Car?
Depending on how extensive your repair is, you may find it more beneficial to buy a new or used car.
Major repairs may become too costly. Worse still, if you get the same recurring problems, the cost piles up over a long period of time.
In this instance, you should compare the cost of buying a used/ new car versus the current worth of your vehicle and the repair costs. If the cost of repair is so high in proportion to the value of your car, it might be time to get another car. Perhaps, your car repair financing might be just as much as the cost of purchasing another car.
As always, remember that getting the loan is only the easy part. The more challenging part is repayment. Therefore, consider longer-term auto repair financing which typically has more manageable monthly payments.