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What Should I Take If I Need My Car Fixed But Have No Money

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i need my car fixed but have no money

It’s often the case that you don’t have the money when your car needs repairs. Would you rather leave it at this stage or come to a common agreement with a mechanic about how to pay them later? Moneyzap.com will help you pay for car repairs without high-interest rates.

There is always an additional option to find money for car repairs. So, be ready to consider all the possible ways to repair your auto with no money. Moneyzap.com also offers additional earning options.

Top Smart Options How to Pay for Your Car Fixed Without Money

Consider several smart options to pay for your car repairs without sufficient income.

#1 Check if You Have Coverage

Normally, you have some kind of coverage that takes care of some of the costs of your car repair bill. If your car is new, your warranty can cover a significant part of your car’s repair costs. If you choose extended coverage, your car insurance must pay for your roadside assistance in the event of an accident and your vehicle repair request.

If the needed car repairs did not result from an accident, you could ask your insurer if they provide cheap roadside assistance. Many smart companies offer roadside assistance to their customers for free. Still, if you are among them, you might not have to leave your vehicle in the moment of a breakdown. Since this is one of the clever ways to pay for your free car repairs, it may not return your car to its previous condition.

#2 Take a Look at a Good Deal

You should know in advance how much you have to pay before trying to figure out where you may get extra money. Request a quote from at least three reputable repair shops. Try to explain to them that you need to know how their offers compare to other auto repair shops you’ve been to and ask whether they offer any discounts.

*Most auto repair shops suggest lucrative payment plans that are less on your wallet than huge one-time payments.

If you are a member of the AAA (American Automobile Association), you can contact some approved stores. They offer member discounts and a 2-year warranty on auto parts and labor.

*If the monetary estimates are still over your budget, you can check with the mechanic in your area. See if they teach auto mechanics lessons. If they do, you may be left with no choice but to let them run one of their practice sessions on your machine. You are responsible for paying for the parts needed to repair your vehicle.

#3 Barter With Someone

If you didn’t get a worthy deal with an auto shop or an experienced mechanic, you might know someone who knows much about cars. Someone with the time and experience to fix your car for something of value will agree if they can see what you may offer as payment for the auto repair service. Whatever agreement you accept, make sure it is agreed upon in written form. This is for the protection of all sides.

#4 Use Your Credit Card Reasonably

If you don’t have the option of getting interest-free loans from family and friends, then your credit card may be a clever option. Using your valid credit card to purchase auto repair services is wise if your supplier offers a repair guarantee on your vehicle. If you have a balance on the card, you will pay interest. But you should consider this a fair value if you hit the road soon. However, as with any card debt, be ready to pay off your balance.

#5 Sell Your Personal Items for Fast Cash

If you have items you don’t need anymore, you may simply sell them for little money. While this may not lift as much as you need to repair your car, it will make a big difference.

Banks, MFIs, or Installments in Car Repairment Services: What to Choose?

Car repair in installments is one of the most attractive options. However, it is worth paying attention to the conditions of such an offer – often, under the guise of an installment plan, a regular loan is offered. Since it is issued through an intermediary, it is more expensive than if you issue it directly at the bank.

A car repair loan issued in an MFI attracts the opportunity to receive money very quickly. Otherwise, this option has significant disadvantages:

  • You will have to transfer the TCP for storage to a microfinance organization.
  • Interest rates for microcredit are much higher than for standard consumer lending. If you take a loan to repair a car from a bank, you need to be prepared that the consideration of the application may take from one to several days.

On the other hand, there are tangible advantages:

  • A complete set of documents for the vehicle remains in your hands.
  • The low-interest rate for the use of credit money.
  • Opportunity to get an inexpensive loan with a simplified package of documents if you are a payroll client of the bank.

How to Choose a Car Repair Loan?

How to decide whether to take a microloan or a regular consumer loan? Much depends on the terms of the loan itself and the estimated timing of the repair of your car. When deciding which car loan to take out, keep in mind:

  • The higher the cost of repairs, the more expensive credit will hit your pocket.
  • The longer it is supposed to make repairs, the higher the overpayment will be, especially if the interest on the loan is high.
  • If the car is working, take into account in the calculations the term for issuing a loan and earnings lost due to downtime.

When comparing the terms of a microloan and a consumer loan, note that the interest rate for a microloan is usually indicated per day or month, while a consumer loan is per year. For example, in an MFI agreement, it may be written that the rate is 2.5% per month, and in a banking agreement, it is 10% per annum. To compare both rates, you can recalculate the annual percentage by dividing 10% by 12 months, which is 0.83% per month. Now it is clear that a loan for car repairs in an MFI will cost almost three times more than in a bank.

To estimate the amount of overpayment for each of the lending options, multiply the received rates by the number of months that you plan to use borrowed money and calculate the percentage of the amount borrowed.

In conclusion, if you want to get rid of the lack of money when it is urgently necessary to repair a car, contact a reliable MFI like Moneyzap. This online lender offers car repair loans and other types of loans convenient for you.

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Frank is a graduate of the Master's program in Economics Sciences. He has been passionate about writing in the financial niche. He enjoys discovering new ways to improve personal wealth and sharing them with his readers. In addition, Frank likes to travel and play board games.

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