Some automotive repair bills can be in the thousands, especially if the owner does not want to get rid of the vehicle. For example, you might be driving your dream car right now and plan to drive it until the day you die. Eventually, with age and miles, the engine block might crack. If you don’t have the money set aside, how will you pay for a new engine? You can finance car repairs. You just need to know where to look for the money and make sure you choose the safest auto repair financing option for you.
What Do You Mean By “Safest” Option?
There are two types of lenders in financing, traditional and alternative, and alternative lenders came about to meet a need. This need was financing for those who have no credit, bad credit, or do not in some other way qualify for a traditional loan. Alternative lenders are legitimate lenders, but they can take advantage of consumers who feel stuck with no options. This is why Credit Karma recommends you opt for the safest financing method, such as a traditional loan if you can qualify for it.
Interest and Penalties
To break this down further, all lending options will assess interest on the borrowed money. They will also penalize your loan if you fail to pay it back in time. These penalties come in the form of additional money required to pay off the loan. To help you determine the difference between the loan options from this perspective, which directly affects you the most, traditional and alternative lenders assess
- Lower interest rates and longer payback periods for traditional loans
- Higher interest rates and shorter payback periods for payday loans
- Higher interest rates and shorter payback periods for title loans
Let’s assume for the moment you take out a $500 personal loan from your bank. Chances are, the interest rate on this loan will be less than 10 percent and you’ll have at least a year to pay it back. The same $500 coming from a payday or title loan will have an interest that can double or triple the money borrowed and you’ll only have, generally, two-to-four weeks to pay the money back.
This is why 610AutoHaus offers Snap Financing to our customers. You can apply for the auto repair financing you need to fix your European automobile and then give us the okay to move forward with the repairs. Call our Pottstown, PA, shop at 610-628-4271 to set up your automotive service appointment.