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Your car may be able to survive a few knocks, but once it packs up it can almost be heartbreaking. Not only do you need to find ways to get around without your wheels, but it can cost you thousands of dollars to bring it back to life. There are finance options such as taking out a personal loan that can help you repair your car, but here are a few handy tips to see if it is the best option for you.
Finding a loan that can fix what is broken
No cost will ever be the same when it comes to how much it will cost to fix a car due to the fact that your repairs costs will be based on the model of car that you own and what is broken. Therefore, it helps to compare your options. Comparing quotes from various mechanics can help you find something that is affordable for your you. It can also help you know whether you can save up for the repairs or you will need to take out a personal loan to cover the repairs.
Finance options that could be available to you
Knowing what finance options are available can make it easier when it comes to comparing something that is financially suitable for you. The most common option is taking out a personal loan which offers a wide variety of lenders to choose from who offer competitively low rates to match your budget. Personal loans also work offer a minimum of $2,000 to $50,000 to help car owners cover small to major repairs. You can also make use of short-term loans and credit cards, but these usually tend to come with high interest rates and less flexibility when it comes to repayments.
How to compare your options
Putting in the research and comparing your options can let you walk away with the best deal that is tailor-made for you. The prominent feature that most potential loan borrowers will hear is to compare the interest rate, and the reason for this is because it shows you if you will be able to afford the loan and if you will be able to meet your loan repayments.
It also pays to use a loan calculator to calculate the comparison rate that shows the true cost of the loan that involves fees and charges too. However, it will be your responsibility to check the ongoing fees that come with the loan before applying to avoid surprises later on. Check to see if the loan comes with flexible features to help you meet repayment and pay off your debt ahead of the set schedule.
Other considerations
Creating a repair and maintenance budget for your car can act as a buffer against future expenses. Keeping to a maintenance schedule can also reduce the number of times your car will be in need of major expenses. You could also consider taking out car insurance to protect you from accident repairs and help reduce out of pocket expenses.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
