Can I get a loan for car repairs?
I got a used car loan from my bank seven months ago. Now the car needs some expensive repairs. Can I get extra funds from the bank for the repairs?
Before you contact your bank, check to see if you have an existing warranty with the dealer or the manufacturer. In most instances, these warranties are transferable and may cover the repairs in question.
If you don’t have a warranty through the manufacturer or the dealer, you’re going to have to pay for the repairs on your own. Although banks don’t explicitly give loans for auto repairs, you still have other options to get the money you need. Consider the following:
- You can get a signature or personal loan for the amount, provided you have an adequate credit score and acceptable debt-to-income ratio (43% or lower).
- You can refinance your used car loan, provided that this makes sense (you receive a lower interest rate).
In the future, you may want to consider getting an extended warranty on your vehicle if your used car doesn’t already have one from the manufacturer or dealership. If purchased from a reputable company, these policies can cover expensive maintenance. Oftentimes, you’ll pay less for the warranty than paying out of pocket.
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