How To Get Help Paying For Car Repairs
According to the ABS census data, over half of the Australian population drives to work. Once you factor in all the school drop offs and pick ups, the number of people relying on cars every day gets even higher. So it’s easy to see why an emergency breakdown can be a big problem for most people. You might be putting some money aside to cover your service costs, but what if you don’t have enough money to pay the mechanic for the repairs your car needs?
Depending on the make and model of your vehicle, repair costs can quickly spiral out of control. If you need a hand reigning them in, a car repair loan can help you get back on the road. But there are other options, and we’ll explore how to get help paying for car repairs.
Overview
- Car loan vs car repair loan
- What to expect from car repair costs
- How to get help paying for car repairs
- Build an emergency fund for car repairs
Car loan vs car repair loan
A car loan is a type of finance that lets you borrow money for the purpose of buying a new or used car. This type of financing allows you to secure the loan with the vehicle you intend to buy, lowering the interest rate for the borrower and the risk for the lender.
Unlike a car loan, a car repair loan lets you pay for servicing, routine maintenance, or emergency repairs on a vehicle you already own. This type of loan lets you address issues with your car fast so you can get back on the road sooner.
What to expect from car repair costs
Whenever you go to the mechanic, you’ll probably be wondering how much it will cost to fix your car. Different makes and models, as well as the availability of parts all affect the final bill, but here’s a rough guide to some common car fixes and how much you’re likely to pay.
The average service in Australia can cost anywhere between $220 to $385. That might sound manageable, but that doesn’t account for any unexpected issues that might crop up between services. Those repairs might explain why, according to the Australian Automobile Association, Australians are spending $1,877.14 per household on car servicing and repairs.
How to get help paying for car repairs
With cars being as important as they are to our daily lives, a sudden breakdown can quickly turn into an emergency. But don’t panic just yet if you don’t have enough to cover the mechanic bill. There are still a few ways to get help to pay for car repairs.
Insurance
If the damage to your car happened because of an accident, theft, or vandalism, make sure you check your insurance policy to see if they’ll cover any of the costs. Now, of course, insurance doesn’t come for free. The average cost of car insurance is $101.70 a month, or $1,220.40 a year. That might sound like a lot, but when you consider the cost of vehicle repairs after an accident can often be much higher, it might be a worthwhile investment.
The downside here is that car insurance won’t cover general wear and tear or mechanical breakdowns. So if your engine blows up on the highway or you end up with a few flat tyres, insurance likely won’t be able to help.
NILs loan for car repair
Not everyone is eligible for No Interest Loans, but they can be a good way to get the help you need. You can borrow small amounts with no interest, no charges, and no fees. They’re a way to help people with low income access credit to pay for emergency repairs, buy new appliances, or find temporary housing.
They’re available through many local charities, so ask yours, and make sure you check whether you meet the eligibility criteria. And remember, The National Debt Hotline is always available for tips and advice if you’re struggling with your finances.
Borrow from friends and family
Of course, there is one other way to get a no interest loan, which is to borrow money from your friends and family. This might not suit everyone’s situation, but it can be a good last resort if you’re in need of an emergency car repair.
If you decide to ask a close friend or family member to help you out, make sure you go over the details. Come up with a plan for when you’ll be expected to pay back the full amount, whether you can pay it off in instalments, and how regular repayments would be. Write everything down so there’s a clear plan you can all refer back to. Making sure you talk through all the details before borrowing money helps prevent any issues arising later down the line.
Car repair loan
Maybe you’ve been hoping that engine noise would just go away, or the brakes you need replacing could wait another few months until you can afford it. But when car emergencies happen, there’s very little to do besides figure out a way to pay for it so you can get back on the road. That’s where a car repair loan comes in.
A car repair loan is a type of emergency cash loan you can use if disaster strikes. Lenders like Swoosh have fast application processes to help you easily pay for repairs instead of pulling your hair out with stress. A car repair loan from Swoosh can be a way to get help paying for car repairs even if you’ve got bad credit.
Build an emergency fund for car repairs
This tip might not help you right now if you have some urgent repairs you can’t afford, but hopefully it’ll save you in the future. Building an emergency fund is a great way to protect yourself when unexpected expenses come up. It can help with anything from getting shocked by a big power bill or an unexpected repair on your vehicle.
Generally, finance experts recommend building an emergency fund to cover three months of expenses. That’s enough to give you a buffer if you lose your job, or some large expenses come up. But that’s a tough amount to save for, and it could take you a long time to build up a safety net that large.
We’ve got plenty of tips to help you find a savings goal that works for you. And saving as little as $50 a week over a year would see you with an extra $2,600 in the bank. That’s more than enough to cover an extra service, a new set of tyres, or any number of other car repairs that might crop up.
Need help paying for car repairs?
It’s Swoosh to the rescue! A car repair loan is a fast, easy way to get the help you need. Our online application takes minutes, and, depending on when you apply, you could be approved and have money in your account the same day. Don’t put off the mechanic any longer. Apply now to get your car back on the road, or talk to our friendly team for more information.
FAQs
What are the most common car repairs?
According to mechanics, the most common car repairs involve engine trouble due to infrequent oil changes, brake pads wearing down and needing to be replaced, and tyres losing pressure or needing to be rotated.
How much is the average service in Australia?
According to data from Oneflare by Airtasker, the average service in Australia costs between $220-$385. Keep in mind that the make and model, age, and how frequently you drive your vehicle will all influence the cost of a service.
Can I use a NILS loan for car repairs?
Yes! If you meet the eligibility criteria for a NILS loan, you should be able to use it to pay for car repairs. Keep in mind that the maximum amount you can borrow for this reason is $2000.
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