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Until it breaks down, it’s easy to forget just how much you rely on your car to get around. But when your vehicle is off the road and in need of repair, even the simplest of everyday tasks can become a major hassle.
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
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Of course, it’s not always easy to find the money you need to get your car going again – which is where car repair loans can help. Let’s take a look at the car repair finance options available and how you can decide which one is right for you.
Car repair expenses vary greatly based on the make and model of vehicle, what goes wrong, and where you choose to get it fixed. And even though automotive technology has come a long way in the past few decades, when cars break down, they can be very expensive to repair.
Common issues you may need to get repaired include:
These are just a few mechanical and body issues that could affect your car. The older your vehicle is, the greater the chance of something going wrong. Add in extra costs like roadside assistance, towing expenses and the cost of ordering spare parts from interstate or overseas, and you could be looking at a sizable car repair bill you simply cannot afford.
Are you facing an expensive car repair bill to get your car back on the road? If so, there are several finance options available to provide the funds you need to cover your costs. Check out the car repair loan options in the table below:
Loan type | Features | Pros | Cons |
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Secured personal loan | Line of credit loan guaranteed with an asset, for example your car. Loans of up to $100,000 and terms of up to 7 years available |
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Unsecured personal loan | Borrow the money you need to pay for car repairs without having to offer any asset as collateral. Loan amounts of up to $50,000 and terms of up to 7 years available. |
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Short-term loan | Sometimes referred to as a payday loan. Provides instant access to money to see you through until your next payday. Loans of up to $5,000 are available with short loan terms ranging from 16 days up to 2 years. |
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Credit card | Can be worth considering if the card issuer offers an introductory interest-free period and you can realistically afford to pay off the repair bill within that promotional timeframe. Amount available varies depending on your card limit. |
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Make sure you consider the following features when weighing up your car repair loan options:
If you’re stuck with a hefty car repair bill totalling several thousands of dollars, it might be time to look at alternative options. In some cases, you may find you’re better off simply upgrading to a new vehicle rather than forking out a whole lot of cash to repair your current set of wheels.
If buying a new or used vehicle could be a better solution for you and you need finance, start comparing car loans at finder.com.au today.
Picture: Shutterstock
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