If you find yourself in a situation where your car has broken down, and you can’t afford the repairs, there are a few things you can do. When you’re hurting for funds, a car repair can seem devastating. However, it’s not the end of the world. You must remain calm while considering your options.
Funding Options
If your credit is damaged, you may need to consider a bad credit auto loan option to replace the faulty car. You could attempt to work out a payment plan with a local mechanic or learn how to do the repairs on your own, or with the help of a mechanically inclined friend is the right option for you. Another option is to budget the repairs with a monthly contribution to an emergency fund to cover the cost of future car maintenance. This option is ideal if you have a heads-up that a part is going bad, and you want to have the funds to fix it when it does give out. Whatever you do, ensure you are prepared to afford the repairs and get your car back on the road.
Bad Credit Auto Loan
If your car has broken down and you can’t afford the repairs, selling it and applying for a bad credit auto loan may be your best option. A bad credit auto loan can help you get the money you need to buy a new or used car, even if your credit score is damaged. Plus, when you sell your old car, you can use the money to pay off some of your existing debt and improve your credit rating.
When applying for a bad credit auto loan, one must be aware of the potential downsides. First, these loans typically have high-interest rates, so you’ll pay more in the long run. Second, bad credit auto loans are often offered through predatory lenders, leading to harassing phone calls and even legal action if you fall behind on your payments. Finally, bad credit auto loans can damage your credit score even further if you default on your loan.
So before you decide to take out a bad credit auto loan, make sure you understand all the risks involved. When you buy a new or used car, consider opting into the extended warranty so that your repairs are more likely to be covered under the warranty.
Negotiate a Payment Plan for Repairs with a Local Mechanic
When it comes to car repairs, many people feel overwhelmed and stressed. And, if you have bad credit, the situation can seem downright impossible. However, there are options available to you. One option is working out a payment plan with a local mechanic. This could involve setting up a schedule where you pay a little each week until the repairs are completed.
The pros of this option are that you can get your car fixed without paying a lot of money upfront and spread the cost out over time. The cons are that you may end up paying more in the long run, and if you fall behind on your payments, the mechanic could take legal action against you. So, before deciding whether or not to work out a payment plan with a local mechanic, weigh the pros and cons and make an informed decision.
DIY with New Skills
If you’re looking for a more affordable option, learning how to do car repairs on your own may be the way to go. This can be done through the mentorship of a mechanic friend or family member or by watching instructional videos on Youtube.
The pros of this option are that you’ll save money by not having to pay for repairs and gain new skills that could come in handy in the future. The cons are that it may take time and effort to learn how to do car repairs on your own, and if you make a mistake, you could end up causing even more damage. Only choose this option for repairs you’ve researched and feel confident in your ability to fix.
Pre-Emptive Budgeting
No one knows when their car will break down or need repairs, and it can be an absolute nightmare if you don’t have money saved up to cover the cost. That’s why having an emergency fund specifically for car-related expenses is so important. This fund will help you pay for breakdowns, repairs, other car issues, routine maintenance, and future car costs. An emergency fund established for your car can save you from catastrophic damage to your finances.
So how much should you save in your emergency fund? That depends on your situation. But experts recommend saving enough money to cover at least 3-6 months of living expenses.
Creating and following a budget is the best way to make sure you’re able to save money for your emergency fund. There are many ways to create a budget, so find one that works best for you and stick with it. And remember, every little bit counts, so start saving today!
Prevention and Planning
Whatever you do, make sure you are prepared to pay for the repairs one way or another and get your car back on the road. Plan ahead and perform routine scheduled maintenance to prevent breakdowns and reduce the damage to your vehicle from daily wear and tear.
