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Should I Finance My Auto Repair?

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Whether you should finance your auto repairs is personal. Your situation is different from someone else’s situation, and it might be wise for that person to finance the repairs but not for you. Many factors come into play when it comes to financing, including getting your hands on the money you need to fix your car. Auto mechanics such as Autobahn Automotive often work with their customers to keep the repair bills as low as possible, but you still might need to finance auto repair if your bank account is a little low.

First, Think About Your Car

Depending on your car’s age and mileage, it might not be worth it to finance the repairs. It might not be worth financing the repairs if the repairs themselves are extensive, such as a head gasket or engine replacement. The question you want to ask yourself is, does it pay me to fix my car, or should I just cut my losses and purchase another one? To answer this question, think about the following:

  • Vehicle age and mileage
  • Vehicle resale value
  • Vehicle repairs at this time
  • Whether the vehicle is paid off
  • Whether you can afford a down payment and car payment

To give an example, imagine your car is 10 years old and has a cracked engine block. You’ve put 200,000 miles on the vehicle. It’s paid off, which has allowed you to stash money away each month into a savings account. In this basic scenario, it’s going to cost you more than the car’s value to fix it. Plus, you have a down payment for a new car saved and room in your budget for a car payment.

Newer Vehicles

If your car is new and not paid off, it’s likely better to fix it. The repair will cost less than the car’s value, and you cannot afford to trade it in unless the dealer will give you the remaining balance of the contract, which it likely won’t do. In this case, it’s better to borrow the money to fix your car, as it places you in debt for a lesser amount than what it would cost you to buy a new car.

Either way, you need a mechanic you can trust to help you decide to finance auto repair, and for Sea Girt, NJ, residents, that is Autobahn Automotive. They specialize in European automotive care, and you can call them at 732-716-3222 to set up an appointment for service or repair.