Tips

Auto Repair Financing Considerations Before You Take Out That Loan

You may have heard in the news lately that most Americans do not have an extra $400 or $500 laying around in the event of an emergency. What if your vehicle broke down. Would you have the money to get it repaired? This is a common problem drivers face throughout the country, which is why alternative lenders prey on consumers. Integrity Auto Repair understands tight finances and we work with our customers to try to keep their auto repair bills as low as possible. To make up any difference, Credit Karma says there are pros and cons to the following auto repair financing options.

Personal Loans and Credit

People can take out personal loans or credit lines from their banks or other reputable financial institutions. This is a good option for those with good credit and the collateral to back up the financing. The loan terms are favorable in many ways, including offering lower interest rates than alternative financing options and the ability to take as long as two years on average to pay back the loan.

Credit Cards

Many consumers just charge it and this can get people into deep trouble. If you have a credit card with a low interest rate and balance, this could be a good way to pay for your auto repair bill. If you have good credit, you can also apply for a new credit card with a zero-interest rate period and pay off the charge before you lose that perk. If your card is the average credit card on the market, you may face as much as 19 percent to over 20 percent interest on the charge, which will make it nearly impossible to pay off.

Cash Advances

Finally, Credit Karma warns consumers should avoid these financing options if at all possible but you may not have a choice. Those with poor or no credit might have to take out a payday or title loan to pay for their auto repairs. Why are these bad options? Both options tack on exorbitant interest rates – sometimes as much as 200 percent – onto the loans and you must pay them back quickly, sometimes within a week or two. Not good for those who are already stuck in financial troubles.

Integrity Auto Repair in Eugene, OR, works with our customers to make auto maintenance and repair an affordable option because we know how much you rely on your car, truck, or SUV. Call us today to schedule an automotive service appointment.

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