Does your car engine reveal a serious problem as you start it to reach your destination? Car ownership comes with sudden wear-and-tear challenges. For some, the burden of a large repair bill can prove financially crippling. It is because the costs associated with these repairs can be high at times. Average car repair costs range from £180 to £1000, depending on the car model.
Thus, not everyone has the flexibility to attend urgent car repairs. This is where financing options for car improvement and repair become important. Understanding these options may help you achieve the current goal without disturbing your basic budget.
Understanding the car repairs in the UK
Car repairs may range from minor fixes to replacing brakes, changing the engine and engine overhauls. The cost of these repairs may vary depending on the level of repair, the condition of the car, and the nature of the issue. For example, replacing a simple brake pad may cost you 100 pounds. Alternatively, extensive repairs like fixing a transmission can cost you thousands.
Labour costs are higher in the UK. It is higher in London than in other rural areas. Understanding these costs will help you prepare for potential expenses. One may consider it if the current savings do not meet the requirements.
What are the pros and cons of using financial options for car repairs?
Just like any other personal need, using finance options for car repairs has its pros and cons. Understanding one may help you choose the right option.
| Pros | Cons |
| Fix your car quickly without waiting to save money. | Some loan options can be costly from an interest and APR perspective |
| Spread the cost into manageable monthly payments. | Missed payments can lead to financial strain or penalties. |
| Includes Buy Now Pay Later or instalment plans. | Approval depends on credit score |
| Useful for unexpected repairs as it prevents you from paying a high upfront cost. | May discourage building an emergency fund |
| Quick approval and easy setup in many garages | Not all garages offer finance options |
What finance options can you use to counter urgent car repairs?
You can consider multiple loan options that might help you cover critical car repair expenses. Identify the aspects and apply for the right loan accordingly. Each loan has its own pros and cons. Hence, analyse every option deeply and check whether it aligns with your needs. Here are some options that you might consider:
Car repair loans
As the name suggests, these loans are specifically for urgent car repairs. You can use it for car servicing, engine, accidental breakdown, and dent repairs.
You may get up to 10000 pounds on car repair loans in the UK marketplace. These are unsecured loans that may help you finance your needs immediately. You don’t need to pay the fee early or provide collateral (mainly). You may consider a secured option if you struggle to qualify for an unsecured loan. Moreover, the repayment period differs for these loans.
| Loan amount (in pounds) | Loan repayment period |
| 1000-3000 | 12 months |
| 3000-6000 | 12-36 months |
| 6000-10000 | 36-60 months |
Thus, you can choose the repayment period according to the amount needed, flexibility, and your monthly expenses.
Bad credit loans
Bad credit loans are ideal for individuals who struggle to get an instant loan due to credit issues. Aspects like CCJ, missed payments, and bankruptcy affect a credit score. It thus impacts the ability to qualify for a loan with good interest rates.
Bad credit loan companies consider aspects other than credit score to determine affordability. Individuals with consistent income and well-managed payments may qualify for the loan. You may get 1000-50,000 on bad credit loans for car repair needs. However, the exact amount you get depends on the requirement, repayment ability and the car repair purpose.
How to improve the chances of getting a loan with a bad credit score?
- Borrow a smaller amount than what you need
- Compare interest and total loan cost, and fetch the most affordable ones
- Check for the hidden costs before the final proceeding
- Keep documents and basic details updated
- Work on your income and must display a disciplined payment history (recently)
- Consider a guarantor or collateral to get the loan with good interest rates instantly.
Emergency loans
As the name suggests, these loans are ideal for individuals who need cash within 45 minutes of the application. It helps you cope with any life-related financial concerns, including car repairs.
If you are experiencing broken tyre belts, steering failures, and electrical faults, you must consider this loan. It helps you get help for such sensitive issues. Individuals with a bad credit score, no credit history or thin credit profile may also qualify for emergency loans.
It is because the approval is mainly based on affordability. If you can afford to repay the loan dues on time, you may qualify. Moreover, minimal documentation and no guarantor requirement make this loan an immediate fit for the drivers. You may get up to 1000 pounds on these loans.
Unsecured loans
Unsecured loans are ideal for individuals seeking an instant loan but do not want to put their most precious belongings as collateral. The interest rates on these loans are slightly higher than guarantor-based or secured loans.
However, it grants complete authority to regulate payments according to one’s ability and finances. One can build a healthy credit score by applying and repaying dues on time.
You may get up to £25000 for your car repair requirements. It means you don’t need to worry about a high upfront cost. Instead, you can finance it immediately without worries. The monthly instalments remain fixed over the loan term. This allows you to repay the dues comfortably by budgeting for it.
No guarantor loans
As the name suggests, these loans are ideal for individuals who want to regulate the payments on their own. A no guarantor loan is slightly more expensive than a guarantor-based loan.
However, individuals with good income and a credit score may get an instant loan approval. They may fetch better interest and total terms. However, one must compare the APR and the total costs before borrowing the funds.
Bottom line
Thus, these are some options that might help you counter urgent car repair needs. Identify how much you need and which loan suits your needs. Compare the APR, total costs, and interest rates. It may help you fetch the most affordable loan given your needs. Check for the hidden charges (if any). It makes the loan more expensive.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
