7 Tips for Financing Car Repairs

17/08/2023 - 15:55 | Featured | IAB Team

As a car owner, you know that vehicle repairs are inevitable. Issues with your car's engine, transmission, brakes, or suspension can arise anytime, and you must have financial resources set aside to cover these expenses. Unfortunately, many individuals are caught off guard by unexpected car repairs and do not have the funds necessary to pay for them.

Car Repair Insurance

Whether you're dealing with an emergency roadside breakdown or long-delayed regular service, expensive car repairs can take quite a toll on your wallet. Here we'll introduce you to some of the best ways to finance auto repairs so that regardless of your budget, you'll have an option that suits your leverage needs.

1. Budget for Car Repairs

The best way to handle car repairs is to plan ahead and budget for them. Start by setting aside an emergency fund specifically for car repairs so that when something does go wrong, you can pay for the necessary repairs without breaking your budget. To cover unexpected repair costs, you should include 10% to 20% of that total. Most importantly, make sure that you maintain regularly scheduled maintenance such as oil changes and tire rotations to reduce the chances of an expensive breakdown due to negligence. Regularly review and adjust your car repair fund's balance as needed.

2. Check Your Warranty

Some car warranties cover specific vehicle parts for three to five years. Check the paperwork from your dealer to determine which parts and services may be covered under warranty. You should also review your owner's manual and note any extended warranties you purchased when buying your car. To start the repair process and make a claim, contact your car dealer or manufacturer to inquire about any potential repair coverage. Your warranty can help cover all or part of the repair fees, lessening your financial burden.

3. Consider Online Title Loans

Online title loans are a great way to finance auto repairs without having to foot the entire bill up front. With this loan option, you'll use your vehicle's title as collateral in exchange for quick cash without waiting for days or weeks. The best part is that you can find loans nearby, making the process quick and convenient. The amount borrowed can be used however you want, including car repairs or maintenance costs. With online title loans, you can get the funding you need to cover the repair cost without waiting for your next paycheck or dipping into your savings. Ensure you thoroughly review all loan terms and conditions before signing any paperwork.

4. Use Your Insurance

For a collision or experience of fire, theft, vandalism, or flooding, your car insurance might be able to help cover the cost of repairs. The coverage for damages will be determined by both the type of policy you have and the severity of the damage. If you have collision or comprehensive insurance, your insurer might cover most or all the repair costs.

Review your policy carefully before filing a claim, and document all damages done to your vehicle with photos in case you need them for evidence while filing a claim. Check if your auto insurance has optional add-on coverage, such as roadside assistance when you need help with a flat tire, dead battery, or any other mechanical issue.

5. Apply for a Personal Loan

For large-sum repairs, consider applying for a personal loan. You can use the funds to pay off more expensive repairs like engine or transmission problems. It's essential to shop around for the best rates and terms from different lenders before signing any paperwork. Review the repayment schedule carefully and consider all costs associated with taking out the loan. Ensure you understand the repayment plan completely, as failure to make payments could negatively affect your credit score.

6. Borrow from Friends and Family

Friends and family can lend you money at a lower interest rate or even without interest. Be transparent about the amount you need and when you plan on repaying it, considering any additional costs associated with the repairs. Make sure you repay the loan as agreed upon to maintain good relationships. Remember that borrowing from family and friends can create tension, so discuss all expectations beforehand to maintain good relationships. It would be helpful to ask for advice on finding affordable repair shops or mechanics who can assist in getting your car up and running again.

7. Look for Special Deals

Many mechanics and repair shops have discounts, coupons, or other offers available occasionally, so be sure to ask about any potential savings before making a purchase. Check out online forums and websites dedicated to car maintenance for additional tips on how to save money. Search local newspapers and magazines, as many businesses advertise discounts there. In addition, feel free to haggle for a better price when presented with an auto repair bill. Negotiate pricing, as most mechanics are willing to work with customers at a fair price that works for both parties.


Finding the right way to finance auto repairs can help make costly bills more manageable. Various options will suit your needs, from using warranties, online title loans, personal loans, and insurance policies to borrowing from friends and family and looking for special deals. Evaluate all available financing options before making a decision that's best for you.

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