If your car has been in an accident or has broken down, if you don’t have insurance or the cash on hand to pay for repairs, chances are you’ll need to borrow the money from somewhere so you can get back on the road.
In this article, we’ll cover tips on how to get a Car Repair Loan, so you have the money you need, when you need it.
Arrange a Quote for Car Repairs
This is a tactic that can also speed up the loan approval process, as well as proving to the lender that you have a legitimate reason for needing finance.
Before approaching a bank or private lender for a loan, first get a quote from your mechanic or panel beater. You’ll need to do this at some point anyway, so it’s best to get the quote first, know exactly what you’re looking at for car repairs and then apply for a Car Repair Loan. This will also ensure you are not over-borrowing, so you save on unnecessary rates and fees.
Prepare the Right Documents
To apply and increase your chances of being approved for a Car Repair Loan, you’ll need to provide the lender with relevant documentation. It’s best to have these documents in order and ready to go before you even apply.
Government-issued ID will be mandatory.
To determine if you earn enough money to pay off a loan, you’ll need to prove your income in the form of recent payslips from your employer or, in the case of the self-employed, documentation from your accountant detailing the income derived from your business.
Other documents may also be required upon request.
If you have the necessary documents available when you do the loan application, processing and approval will be a lot faster.
Apply For a Car Repair Loan With a Private Lender
The private lending sector provides a number of key advantages, with the greatest advantage being the speed of the process. If you need money fast to get your car back on the road, a Car Repair Loan from a private lender could be the answer. They specialise in fast cash loans and often you’ll have the money in your account the same day you apply for a loan.
Documentation and paperwork is minimal, further streamlining the process and loans can be tailored to suit your individual requirements. You can do the loan application entirely online and terms and interest rates are generally fair and reasonable.
Research Lenders To Find the Best Loan
You can do this all online these days. One option is to visit the websites of the banks and other lenders and peruse their latest rates and offers.
You may choose to start your research on a loan comparison site, which lists a selection of lending institutions and their latest interest rates and loan establishment fees. This will help give you a guide of what the best rates are. Remember, a reputable lender will always be transparent with their rates and fees, which makes it easy to compare your options.
Enlist the Help of a Finance Broker
If you’re out of your depth, it’s best to ask for help! A finance broker is an intermediary. Just like when people buy or sell a home they’ll enlist a real estate agent to do the negotiating for them, a finance broker offers a similar service in the finance industry.
If you need a Car Repair Loan, your finance broker will search for the best loan to suit your needs, liaise with the bank or finance company and negotiate the loan on your behalf.
The advantage of having a broker on your side is they know the industry and have developed relationships with the people who make the decisions when it comes to loan applications. This means you have a far better chance of getting your finance approved.
Always Have a Plan For Repaying the Loan
No matter where you find the finance to get your car repaired, you’ll need a plan to repay the loan. This includes allocating a portion of your weekly or fortnightly budget to loan repayments. To act as a safeguard, it’s also wise to put a little extra money aside each week as backup, just in case your financial situation changes.
If your car has been damaged or needs urgent repairs, a Car Repair Loan could save the day. If you follow the tips in this article, you should have the finance you need to get back on the road in no time.