5 Things You Must Do When Your Car Repairs Are More Than You Can Afford
Car repairs are par for the course when it comes to owning a vehicle. However, in some cases, making costly repairs isn’t an option. The cost of the repairs may not be within your budget — or it’s simply not worth it to sink more cash into the car.
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But what can you do when you need a car but can’t afford to fix the one you have? Although it’s a frustrating situation, you may have more options than you realize. Here’s a quick guide on what to do when you can’t afford to repair your car.
Should I Repair My Car?
When to repair your car
A newer car with a loan balance will likely be the best candidate for repairs, even expensive ones. Even if you have an extremely expensive repair bill, you probably don’t want to keep paying the monthly note without being able to use the car. Plus, it’s more likely that this car could have an active warranty.
If your car is older, it still may be worth it to repair it if:
The car is generally reliable.
The repair will address the issue completely.
You can expect several more years of dependable use from the car after the repairs.
When not to repair your car
First, you should consider the current value of your car against the cost of repairs. If the repair costs are at or above the value of your car, it may not be wise to proceed with the repairs.
Then, consider the vehicle’s remaining useful life. If your car is very old or has too many mechanical issues, it may not be worth fixing it — especially if you’ll continue shelling out money for additional repairs. Plus, if the repairs can’t guarantee a safe and reliable vehicle, it might be time to invest in a new (or gently used) vehicle that will.
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What Can I Do If I Can’t Afford To Fix My Car?
Get a second opinion
Take your car to different mechanics to get another opinion about your estimate. You should also try to get another repair estimate to compare pricing from separate shops. If you can get the repair bill down, it could help you get your car functional again for less money.
Check your warranty
Did your car come with a warranty, or did you buy a third-party one at some point? If you have a warranty, check to see if your issue is covered, which might reduce the out-of-pocket costs for the repair. Also, check for recalls associated with your make and model, along with other ways to get free vehicle repairs.
Get a new car
Ideally, you’ve got some savings and can buy a used car within your budget with cash. If not, some car dealers may allow you to use the damaged car for a trade-in.
In this scenario, they could pay off the old loan and sell you another car. This option can be an immediate fix but is extremely expensive — and may result in you having negative equity in your new vehicle — so proceed with caution.
Get a loan
If you can’t afford your vehicle’s repairs, you can consider getting a loan to cover them. There are plenty of emergency loan options, such as personal loans, car title loans, lines of credit or credit cards. Asking a family member for a loan may also help. Also, don’t rule out asking the repair shop for financing. Some now offer this option to customers.
Use alternative transportation
This may not be ideal, but it could help you save enough money for your repairs (or a new vehicle). Options here include taxis, ridesharing apps, public transportation, bicycles or motorcycles. Once you’ve saved enough money, hopefully, you can fix your car — or get another one.
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