This page contains affiliate links, which means we may receive compensation if you complete a form.

Two auto repair financing programs offer different ways to fix your car when you do not have enough money set aside for emergencies or routine maintenance.

Circumstances and needs will dictate which alternative works best for you.

Turn to online loans to compare interest rates and term offers, and to decrease the chances of declination if you have a bad credit history or need a lender that does not perform credit checks.

Meanwhile, most service shops offer payment plans through third-party finance companies, but you must take your chances with the underwriting rules of a single lender.

Get Started with a Repair Loan Request!

(Affiliate Link)

Auto Repair Loans Online

Taking out an auto repair loan online puts you in control and allows multiple providers to compete for your business – at both ends of the process.

  1. Making an initial request though a web-based form puts your credentials in front of a vast network of lenders who bid for the right to make you offers
  2. Money deposited in your bank account gives you the power to get multiple opinions and price quotes from reliable mechanics and service centers

Emergency Loans

Request an emergency auto repair loan here. (Affiliate Link) Unsecured personal loans offer fast underwriting decisions. If approved, you could quickly have the money needed to pay the mechanic and get your vehicle back in running order without missing too much time at work.

Unsecured contracts translate into a speedy process, which is critical during an emergency. You avoid the time-consuming paperwork requirements associated with verifying the value of pledged collateral, such as the vehicle title or home appraisal.

Accelerate the process by having this information handy when you complete the web form.

  • Income from employment or government benefits
  • Employer contact information
  • Bank account and routing number
    • Verify your identity
    • Enable the lender to wire money
    • Permit monthly drafting to ensure prompt payment

Financial assistance programs are more available to drivers who lack the qualifications to borrow money from an outside company as low income and economic hardship are often primary criteria.

No Credit Check

Working online before arriving at the service center is also critical for drivers seeking auto repair loans without a credit check. Who knows what the underwriting rules will be at the one third party finance company that partners with your local garage.

The online lenders that underwrite without a credit check focus on sub-prime borrowers who might have no history whatsoever or a consumer report full of charge-offs and collection accounts. Rather than follow traditional risk management tools, they pull files from alternative bureaus that collect different information.

  • Utility bills (gas, electric)
  • Apartment rental evictions
  • Cable, telephone, and cellular bills

Bad Credit

Getting your credentials before an enormous network of lenders is crucial when you need an auto repair loan but have a bad credit history. People with an adverse payment record and poor FICO scores often face low approval odds. Therefore, maximizing the number of finance companies that could say yes makes a huge difference, as does the Debt-to-Income (DTI) ratio.

  • Using an online process provides access to lender volume; whereas if you wait until your car is on the lift at the local garage, you lose this advantage and place yourself at the mercy of one finance company and its rules
  • Drivers with bad credit history can also improve the qualifications by showing the ability to afford the projected monthly payment, as expressed by the Debt-to-Income (DTI) ratio

Local Repair Shops Taking Payments

Would you travel to your nearby bank branch and ask them to repair your car? Of course, that would be silly. A bank employee might be able to approve a credit application but would refer you to a qualified mechanic to diagnose and address faulty brakes, transmission, suspension systems, etc.

Likewise, your auto shop likely does not take payment plans themselves. Instead, they refer that function to a finance company that administers installment loans or credit card programs on their behalf.

3rd Party Companies

Many local car repair shops that take payment plans refer customers to a third-party finance company that offers installment loans.

  • Installment contracts feature a fixed amount and number of monthly payments that retire debt according to schedule
  • Third-party means the lender provides the funding directly to the referring service center rather than the customer

Put yourself in this familiar situation to understand how the process works. You bring your car in for a routine oil change, and the technician performs a free multi-point inspection. Then, the service advisor calls your name and informs you about an expensive mechanical problem you cannot afford to fix.

What options do you have at this point? If you want to drive a safe vehicle, your only alternative is to apply on the spot and accept whatever terms the referral finance company offers – which might not be ideal.

Credit Cards

Other local auto service centers that take payment plans refer their customers to third-party finance companies that offer revolving credit cards. Revolving contracts feature flexible monthly payments and the ability to use the account again for future repair work.

Car care centers love repeat customers, and every vehicle requires routine maintenance and replacement parts as the miles pile up. A customer with a credit card might keep coming back for years.

Therefore, signing up for a credit card comes with extra perks that could save you lots of money over the years on your vehicle maintenance – at this one service center brand nearby and nationwide.

  • Instant discounts on your initial work order
  • Special coupons for routine maintenance items
    • Oil changes
    • Brake jobs
    • Tire rotation
    • Wheel alignment
  • Introductory APR during promotional periods

Just remember that revolving credit card balances might never go away. The flexible minimum monthly payments can allow-a snowball of debt that you may never be able to repay – as the interest charges add up quickly.