Auto Repair Loan
Need for Auto Repair Loan: For many, buying a car is not only a big-ticket expense, but also meeting its recurring maintenance cost. At times, maintenance cost becomes so high that avail an auto repair loan makes better financial sense. In case of accidents also, when insurance companies do not pay for the damages, availing an Auto Repair Loan becomes the only option left to tide over the urgent need of funds.
Besides, a major breakdown of the vehicle might necessitate an urgent need for money to meet insurance deductibles and especially in these situations a car repair loan can be the only way out. Auto Repair Loan can also be used for overhauling and getting the car a new-look for which insurance companies might not give coverage. On a generic level, car repair loan rates normally depend on (i) the status of the car to be bought which might either be a brand new one or an used one (ii) the credit ratings of the applicant which might be good, bad or insolvent. (iii) age of the applicant which gives an indication of how long the applicant have to repay the loan prior to retirement and most importantly (iv) the tenure of the loan.
Taking that important decision: It is a fact that new cars costs more; and thus amount of loan required to be availed is low. When the loan amount for buying a new car is high, higher would be the monthly installments. Buying a new car lessens the chances to replace spare parts. But buying a good second hand car needs a lesser loan amount and thus lesser monthly repayments. In these situations, one needs car repair loan after two or three years. It is always better to sell off the car when signs of problems just begins to surface and repay the remaining portion of the loan which has been availed years before.
Rates for Car Loan Repair: In case of most of the policies it requires a pre-fixed amount to be deposited by the car owner which is termed as the deductible. This is a prerequisite before the insurance company pays up for anything on repairs. Some car owners might be in need of a car repair loan to cover the deductible in case they do not have sufficient money for paying the same. Car loans are available for various terms and amounts and hence borrowers can choose a particular program that fulfills their needs. It is important to note that the interest rate on car repair loan is normally the ongoing prime interest rate. In case the borrower has a poor credit rating, it will be higher than the prime rate.
As in case of all commercial borrowings, interest rate on any loan happens to be the single most important issue affecting the amount of monthly payment that goes on to determine the capability of the borrower to repay the loan on time. The amount of loan will not be higher than two thousand dollars and repaying it within one to two years maximum is financially prudent. Many are unable to afford to get a car on hire during situations when the main vehicle of use is awaiting repairs. It would be better to borrow and get the vehicle repaired in the meantime at the earliest possible.
The facility of Automobile Lending Service can also be availed to get an auto repaired without putting a dent on one's savings. Better financial sense calls for putting aside a small portion of monthly income towards repair and availing a car repair loan for the remaining amount. Car Repair Finance Corp (http://www.carfco.com) offer competitive rates some of which are among the lowest in the Car Repair Loan market. While looking for a car loan lender, it is always better to do some prior research and then make a comparison of rates and avail the loan from a company who charges a low rate of interest.
Customized Car Repair Loan: Some exclusive car repair loans are tailor made to the value of the car and not necessarily on the financial standing of the owner and category of jobs. This type of car repair loans are normally for undertaking last minute repairs like exhaust, suspension or may be brakes. Besides, these may be for purchase of new tires so that the car runs much safer on the road. In these cases the final loan approval is dependent on the current value of the automobile. Application receipt is online in a secured manner and following approval, the applicant gets the money quickly. Repair loans of these types are flexible and repayment is based on the preferred payment schedule and payment amounts. Interested applicants can check the website https://www.secure.moneysearch.ca/carrepairloanapp.htm for more information. There are also facility for pre-payment of loans that reduce the monthly costs. Auto repair loan is an open loan which can be repaid during any time. No pre-payment penalties are charged and it is just an extra bonus for joining the program.
Some extra cautions to be exercised before availing Car Repair Loan: It is the mechanic who makes the estimates during most of the auto repair cost estimates. The mechanics usually inflate the repair costs to make extra money from every repair made. Hence, due prudence must be exercised and cost estimates must be verified so that the mechanic does not take the car owner for a ride, not at least at the cost of the car owner.
