With the exception of the regular replacement of wear parts and the usual repair work before the appointment with the strong brand, a vehicle repair cannot be planned in advance, so that it is easy to take out a loan to pay for it.
If the vehicle damage makes it impossible to continue the journey, the loan for the car repair must be paid out quickly, provided that the holder cannot use his credit facility until the loan is received. Its interest rate is higher than the interest payable on a consumer loan. However, it makes sense to use it because the additional costs with a useful life of a maximum of fourteen days are lower than the higher interest rates of an instant loan compared to a loan with normal processing time.
Borrowing through the workshop
Some workshops offer their repair customers a partial payment. This option is easy to use, and existing customers usually only have an internal credit check. This consists of checking whether the customer has paid the previous bills of this one workshop on time. Even in the case of new customers, repair shops that offer payment in installments do not usually require proof of income. Although the installment is sometimes processed without interest calculation, it is not necessarily the cheapest loan for a car repair. Rather, almost only larger branded workshops offer the installment payment service, while the significantly cheaper independent auto repair shops and petrol stations with an attached repair shop mainly insist on paying when the car is picked up.
When comparing costs, car owners take into account the accrued interest and the price differences for the repair work. The financing of a car repair via a car bank at an interest rate reduced compared to classic bank loans requires that the keeper has his car repaired in the dealer’s specialist workshop. This is useful not only for warranty repairs, but also for repair work to be paid for by the owner during the warranty period and when replacing wearing parts. After the guarantee has expired, however, it is advisable to place an order with a freelance workshop, since it usually does the work much more cheaply than a branded workshop.
Bank loan for a car repair
In the case of a consumer loan, the bank does not ask whether its customer is using the loan for a car repair or for another purpose. Special bank loans with reduced interest rates are common for buying a car, but not for repairing a car. A basic prerequisite for obtaining a loan is sufficient income, a good credit rating and a secure job.
In the case of instant loans, individual financial institutions reduce the credit security requirements to such an extent that they even forego proof of salary. These loans can be used to finance a car repair for people whose income is made up of different sources or fluctuates widely, as most financial institutions only take part of the total income into account in their household bills in such cases.
Personal loan for a car repair
A loan for car repair can be successfully applied for on a website for loan brokerage between private individuals, even with poor creditworthiness. The prerequisite is that the applicant explains in detail the reasons why he or she must rely on a usable vehicle, because most private lenders base their lending decisions on the intended use. Depending on the amount of the repair costs incurred, the loan is paid out by one or more lenders, so that it may take a few days for the loan request to be fully subscribed. The payment is made as soon as the total amount has been subscribed.