Unless you live in the middle of a major city with a solid public transportation system, it’s impossible to navigate daily life without a dependable car. People use cars to get to and from work, to bring their kids to school, to do the shopping and even to take their vacations from time to time. Americans love their cars, and society is set up with those vehicles in mind. But what happens when your car goes down with a major issue? This can be a devastating turn of events, especially if you’re strapped for cash. The recession left millions of people out of work for an extended period of time, sapping savings accounts and burning through emergency funds. This may create the unenviable position of needing thousands of dollars in car repairs without having the money to get it done. It’s a tough spot. You don’t have the cash to get your car back on the road, but you also can’t afford to buy or lease anything new. Some people navigate this issue by taking out a car repair loan. Here are a couple suggestions for how to secure your own loan for auto repairs.
Generally speaking, an auto repair loan is pretty much like any other sort of personal loan. If you are facing some seriously expensive repairs, you’ll take out the loan, and the lending company will pay the repair bill directly. Then you’ll receive a monthly bill for payments, with interest tacked on top. You can also put an auto repair loan towards paying off your insurance deductible, if this repair falls under that category. You can also take out a loan that’s larger than the repair amount, allowing you to use the remainder to pay back the loan or really for anything else you might need.
You’ll find two distinct options for car repair loans. The first one is issued by an accredited lender or a banking institution. In this case, you’re basically taking out a personal loan. You’ll need to meet with the lending officer and discuss your situation. Then you’ll fill out an application and go through a credit check. As long as you have decent credit and pass the requirements that bank has in place, you’ll quickly be granted the money you need. You might even find a bank that has a standing arrangement with various repair shops. They’ll coordinate to create specific loans good for that mechanic.
The other option is known as a title loan. In this case, you’ll have to go with either a payday loan office or a pawn shop. This is a much trickier proposition. Basically, you’ll be putting the title of your car up as collateral for the loan. The money you can receive will be directly tied to the current value of your vehicle. It’s not ideal, but if you don’t have a good credit rating it could be your only option. Again, you’ll have to visit one of these places and fill out an application. Then you’ll have to have your car appraised. Since the loan is offered entirely based on the value of the vehicle, you should know fairly quickly if you are approved or not. Keep in mind that if you’re opting for Atlanta title loans, or loans of this type from anywhere really, your car is on the line. If you don’t follow through and make your monthly payments, they could take your vehicle permanently. You’ll have no recourse but to buy it back from them, or pursue it at an auction.