How To Pay for Your Used Car Repairs

Car maintenance and repair expenses are unavoidable parts of life. Unless you have another vehicle to use, you must keep your car in good shape at all times. As a must-have, it must be maintained. Otherwise, it can cost you dearly if you’re not keeping up with the regular maintenance.

According to a poll conducted by the automobile club AAA, basic vehicle maintenance costs an average of $500 to $600, with more significant repairs costing more than $1,000. Also, one in three drivers says they cannot pay for an unexpected car repair. Even if the repairs are covered by your auto insurance, you may pay a deductible of $500 or more, depending on your coverage. So what do you do? Here we have some tips on how you can pay for the repair of your used car.

1. Pick Up Used Car Warranty

If you’re worried about regular maintenance costs and your used car is under warranty, this could be a good option. But if the used car isn’t under warranty, opting for an extended plan can help cover almost all expenses related to repairs and regular maintenance. What is a used car warranty, anyway? A used car warranty is a protection plan that covers repairs after the manufacturer’s warranty has expired. You may purchase extended warranties directly from the manufacturer or dealers and third-party providers. With this type of warranty, you can just bring your car to a licensed service center for a proper checkup. If the repair is under your coverage, the administrator will pay the repair shop less your deductible.

2. Take Advantage of Your Credit Cards

Some credit cards offer coverage for the repair or replacement of your used Ford SVT in case it’s stolen or damaged. Also, you can take advantage of their roadside assistance services. These types of cards usually provide insurance coverage for collision and theft. But keep in mind that these insurances are secondary, meaning they only kick in after your primary coverage has been exhausted. So if you have collision insurance on your own and it pays the full value of your stolen used car, these credit cards will not pay their policy limits. Before opting to use a credit card, make sure you look at what types of coverage are offered, primary or secondary.

3. Get an Auto Loan or Used Car Lease

If you’re facing a situation where the repair expenses are more than what you can pay off, one way to go is to get an auto loan for the full amount of what is needed to cover the costs of the repairs. To find out what you can afford, you can visit your bank or credit unions and inquire about the repayment terms on offer. Ensure that all charges, including interest rates, are included in a lump sum amount.

4. Get Low-interest Rate Credit Card Cash Advance

If you have a low-interest credit card and don’t have a car loan, this option can benefit you. However, we advise that you contact your service provider before trying this method. Inquire if they charge fees for obtaining a cash advance with the card. Also, make sure not to take out more than you can afford to repay.

5. Ask the Repair Shop About Payment Plans

When you’re looking into car repairs, ask about payment plans or financing options offered at the repair shop that will fit your needs. Keep in mind that these types of arrangements will be reflected on your credit report, so if you think this could impact your credit score, make sure to inquire with the credit bureau.

6. Get Your Car Fixed by a Private Mechanic

Instead of bringing your car to a dealership or an authorized dealer, it can be cheaper and less stressful if you get your used car repaired at a private mechanic. Depending on the extent of damages, you may negotiate lower rates for labor and parts. Also, these types of repairs are usually not reflected in your credit report.

7. Dip Into Your Emergency Fund

Your emergency fund is meant to help you out in case of financial setbacks. So, if your used car needs repairs and you have no plan or option to cover the costs, this can be a last-resort option for you. The only drawback with this method is that it will take some time to save up enough money for your emergency fund.

8. Ask Your Insurance Company for Help

If you have collision and comprehensive coverage on your used car, they will most likely pay up to the limits stated in their policies. Keep in mind that extended warranties may not cover any damages done when the car is being repaired.

9. Loan From Friends and Family

If you have family or friends who are willing to loan you the money, by all means, take them up on their offer. However, keep in mind that it is not advisable to borrow from friends and family because chances are they will expect repayment. This could cause problems, especially if you lose the car for good. It might be better to opt for any other financing alternatives mentioned.

Takeaway: Find the Suitable Method for Car Repair Payments

If you have a used car that needs repairs, some alternatives to pay for the expenses are worth exploring. These include asking your insurance company for help, asking the repair shop about payment plans and financing options, getting an auto loan or lease, and even dipping into emergency funds. The most important thing is finding out what will work for you and the most suitable method to get your car fixed.

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