A car does not intimate that it will break down in days to come. Despite forewarning, you refuse to take it to the mechanic to ensure it does not cause any greater problems down the line. Consequently, your car breaks down and needs immediate attention from a mechanic. Now, the biggest concern is how you will afford the repair bill in the face of a shortfall in savings.
There could be several reasons why your car is out of commission. The engine could have a defect or fault, or something might be wrong with the battery. Sometimes, your car collides in an accident and gets banged up. Then, the repair cost will cost you a fortune. Financial experts always recommend having an emergency cushion at least six months’ worth of living expenses.
Car repair is not an unexpected expense that catches you unawares. Like Christmas, this is an expense that you know you may come across at some point in life, so it is always recommended that you stash away money for these expenses. Unfortunately, such pieces of advice fall on deaf ears.
Well, there is nothing to worry about if your car starts acting up and you do not have enough money to meet the repair cost. Here are some of the funding sources you can use to foot the bill:
Savings
Even if your savings are not sufficed, it is recommended that you employ them to meet the repair cost. Savings always preclude you from borrowing money, which means saving a lot of money as interest. The aim of an emergency cushion is to help tide you over while being in a tight spot.
You might be worried that your savings will be exhausted now and next time when you come across something unexpected, you will be forced to borrow money. But you must be able to have stashed away some money by the time you are caught unawares by any other expense. If unforeseen expenses do not let you breathe, you will certainly have no choice other than to borrow money.
No guarantor loans
When savings fall short of cash, or you do not have savings at all, you will need to hinge on loans. No guarantor loans might come in handy. They are small emergency loans that provide you with an immediate injection of cash. What makes these loans so popular is that they are not subject to collateral. However, because the risk is too high, you will end up with high interest rates.
Only if you are certain about your repaying capacity should you borrow money. Compare interest rates between lenders so you do not end up with the most expensive deal. You can get a line on interest rates and associated charges through their websites or comparison websites. Bear in mind that by no means can you get hold of actual rates before applying for a loan formally because they are proposed after a perusal of your credit history and income sources.
Annuity loans
Emergency loans could be quite expensive. If you feel that you may not be able to repay the debt, it is suggested that you do not use them. But what would you do if your savings were little or nil? Here comes the role of AnnuityLoans.
These loans allow you to borrow money against the annuity. The loan request is made online, and then you will have a specific period of time to discharge the debt. There are some terms and conditions related to age that must be met to qualify for these loans. It depends on the annuity loan provider how much they will let you borrow and for how long.
Borrow from family and friends
Friends and family are better alternatives to loans in the absence of savings. If the car repair bill does not cost you enough money, you can think of getting help from your friends and family. Before turning to friends, you should ask your parents for money. They will certainly be able to assist you. However, make sure that they are not doing so out of compulsion. Despite lending you a helping hand, they must have enough money to make ends meet.
Borrow money responsibly. Make sure you do not take advantage of their generosity. Do not borrow more than you need and promise to pay them. Likewise, if you borrow money from your friends, make sure you pay them as soon as you arrange cash. It is always suggested that you discuss the repayment term with your friends. If possible, pay back a little more than you borrow.
Ways to reduce the repair cost
When cash is tight, you should also consider reducing your expenses on repair costs. First off, you should research to pick the most affordable mechanic. Repair charges vary by mechanic. Ask your friends or neighbours if they know any affordable mechanics. You should also do some online research.
Independent mechanics are more affordable than dealership car services. Although they offer a premium quality of service, dealership services charge a lot of money. Even if you have a considerable size of savings, you should prefer independent mechanics. They cost you less money.
Social media sites could also help you know local mechanics that charge very low prices. Facebook, Twitter, and in fact, Quora can also let you know about the most affordable mechanics in your neighbourhood.
Further, you should never ignore the signs when your car is acting up. Some mysterious sounds often need immediate attention. Not addressing them on time only inflates your car repair bills.
To sum up
The best way to fund car repair bills is from savings. Even if you do not have sufficient savings, you should utilise the whole of it to meet repair charges. Other alternatives include AnnuityLoans, no guarantor loans and other emergency loans that you can use to foot the repair charges. You can also borrow money from friends and family. They will not even charge you interest, so you can save a lot of money.
