An individual filling their car tire with air as part of their car repair maintenance

Car Repair Loans: Financing Options for Auto Repairs

Written by Morgan Shaw

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Understanding Car Repair Loans and Financing Options

Car repairs have a knack for catching us off guard, leaving us scrambling to figure out how to cover the expenses. The last thing you want is to worry about the financial burden when your car breaks down unexpectedly. Thankfully, financing options are available to help ease the financial stress and ensure your vehicle gets the necessary repairs. There are various ways to finance your car repairs. By exploring these options, you can decide on the best course of action for your situation.


Car Repair Loans

Car repair loans, or auto repair loans, provide a convenient way to fund your vehicle’s maintenance and repairs. Similar to personal loans, they come with loan terms, including payback times, interest rates, and fees.  Unlike payday loans, car repair loans offer reasonable interest rates and flexible repayment terms. With minimal paperwork and streamlined approval processes, car repair loans often provide an efficient solution for getting your vehicle fixed and on the road without the complexities of other loan types. By simplifying the financing process, car repair loans offer a practical option for those seeking timely and affordable financing.


Other Payment Options Worth Considering

Personal Loans

If a car repair loan is not an option or you prefer a different alternative, personal loans can also be a viable choice. Many financial institutions provide personal loans that can be used for various purposes, including auto repairs. These loans offer a lump sum of money that you can utilize to cover your repair costs. However, it’s important to note that interest rates and loan terms can vary substantially based on your credit history and the lender, so it’s essential to carefully review the repayment terms of the loan to determine if a personal loan aligns with your needs and financial situation.


Credit Cards

Credit cards offer an alternative option for financing car repairs. However, it’s important to look at the card you’re using before relying on it to cover big expenses.

If you opt to use an existing credit card, it’s important to note the existing APR (Annual Percentage Rate). Paying for car repairs with a credit card you already have could result in significant additional interest payments.

One alternative to using an existing credit card is to shop around for a new credit card with a low introductory APR. Some credit cards offer 0% purchase APR for a specified period, typically ranging from one to two years, which means that as long as you pay off the balance within that timeframe, you won’t be charged any interest. However, be aware that once the introductory period ends, you will have to start paying interest, but if you can secure a credit card with a low introductory APR and feel confident you can pay off the expense during that period, it can prove to be an excellent and convenient option for managing your car repair expenses.


A car’s dashboard displaying various warning lights and indicators – illustrating the need for car repair loans

Payment Options to Avoid

Payday Loans

Although sometimes seen as a quick solution, payday loans are generally advised to be avoided. While they may make money easily accessible, their associated high costs and short repayment periods make them financially burdensome. Payday loans typically require repayment by the borrower’s next payday and come with extremely high interest rates, sometimes surpassing 300% APR. Borrowing from a payday lender can result in a vicious cycle of debt that is challenging to break free from, so exploring alternative options before resorting to payday loans is strongly recommended.


Title Loans

Car title loans, similar to payday loans, are considered high-risk short-term financing options. With a car title loan, the lender provides a loan in exchange for the borrower’s car title. Repayment of the loan and associated fees are typically due within 30 days of loan issuance, upon which the borrower can retrieve their title.

However, failing to repay the loan can have serious consequences. The borrower may face vehicle repossession or be required to pay additional “rollover fees” to delay the loan repayment date, which creates a costly and precarious borrowing situation. Car title loans have a typical APR of 300%, according to the Consumer Financial Protection Bureau (CFPB), and, disturbingly, CFPB has found that over two-thirds of auto title loan borrowers roll over their payment at least six consecutive times due to the challenges of repaying the exorbitant costs.

Like payday loans, exploring alternative options is strongly recommended to avoid the pitfalls associated with car title loans and the potential loss of one’s vehicle due to the inability to repay the debt.



Car repairs can create severe financial strain, but fortunately, financing options are available. Car repair loans provide convenient funding with reasonable terms, and personal loans can be helpful if the terms are right. By understanding the available options and avoiding options like payday and title loans, you can effectively manage unexpected expenses and safeguard your financial well-being. Prioritize alternatives that align with your budget and repayment capabilities to ensure a smooth experience when dealing with car repairs.


The information and materials provided on this website are intended for informational purposes only. They should not be treated as an offer or solicitation of credit or any other product or service of Regional Finance or any other company. This website may contain links to websites controlled or offered by third parties. The inclusion of any third-party link does not imply any endorsement by Regional Finance of the linked third party, its website, or its product or services.

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