Many college students own a car. It makes it easier to commute from A to B, but in the excitement, you often do not realise that a car does not cost only the sticker price. If you try to get it financed, you will end up paying a lot more in the form of interest. In addition, you must have a budget to foot repair bills.
Most of the young adults do not find it a bit easy to bear repair expenses. It depends on the condition of your car how much you need to spend on repair work. Sometimes, repair bills only cost you a few pounds, but other times they could be huge.
Fuel costs already put a lot of strain on your budget. Still, there are other costs that lead to breaking the bank, for example, routine maintenance such as oil changes, brake checks, etc, unexpected repair expenses like transmission issues and engine failures, and insurance premiums.
All these costs quickly drain your budget. It is quite challenging for students to pay car repair bills because of limited income. A limited credit history is another reason why they find it a bit complicated to borrow money as a young people.
Financing options for car repair bills
There are several financing options that can help you access money, and some of them do not require a credit check.
- Emergency student aid programmes
Many colleges offer emergency financial aid programmes to students to help them cover unexpected expenses. Whether you have come across medical bills or car repair bills, you can use this assistance to pay for them. Check how much grant funding you will be offered on the college’s website.
- Community assistance programmes
Community assistance programmes are also available from various community organisations. They provide financial help to people to cover unexpected expenses. You can also receive discounted repair services. Some garages offer repair services at reduced rates. Check if you can receive help from local churches and community organisations.
- Garage payment plans
Some garages also offer payment plans to help students to cover car repair bills. This facility is especially available when you have got a huge bill. For instance, borrowing 2,000 pounds urgently is not possible. In fact, most of the lenders will not be able to sign off on such a big loan due to a lack of income sources.
Some garages will allow you to pay in fixed instalments over a few months. However, garages do not advertise their payment plans. You will have to ask before getting your car repaired. It is recommended that you research first.
- Credit union loans
Grants and aid programmes might not be enough to cover the cost of car repair bills. If you try to take out a loan from a direct lender, you will have to show your credibility. A decent credit score and income sources are needed to qualify for a loan from a direct lender. Even so, you might end up with high interest rates. This is because a high risk is involved in lending you money.
You can consider borrowing from credit unions. They offer loans to help you cover unexpected bills, but they charge lower interest rates than direct lenders. In order to borrow money from credit unions, you must be a member. You can avoid paying high interest as credit unions offer personal loans with lower interest rates.
- Campus car repair services
Some universities and colleges partner with local mechanics to provide on-campus repair services. You can find these services much cheaper than garages.
- Peer-to-peer help
There are several peer-to-peer platforms to help young adults to cover unexpected expenses. These platforms provide informal support from friends and family. You can get quick access to money.
Tips for reducing car repair costs
Here are some tips to help you reduce car repair costs:
- Make sure that you regularly maintain your car. A periodic oil change is a must. Basic maintenance should be done every three months, but if you drive a lot, you should change oil more frequently.
- You should learn DIY techniques. There are several things that you can change on your own without any help from a mechanic. For instance, replace wiper blades, air filters and brake pads. You can save a lot of money if you learn to do things on your own.
- You should also ask garages if they offer student discounts. Most car repair companies offer hefty discounts to students. Do not forget to ask about it before getting your car repaired.
- Try to buy a car whose parts are easily available and less expensive. If possible, you should purchase used parts. They will cost you less money than actual parts.
- You should focus on your driving habits as well. A golden rule of thumb says that you should avoid rash driving because it takes a toll on the car’s condition. Good driving habits reduce normal wear and tear.
Things to keep in mind while using loans to foot car repair bills
Here are the tips you should bear in mind while using loans to cover the cost of car repair:
- Loans could be an expensive option. You should consider other alternatives such as garage payment plans and college grants first. Garage payment plans may include interest, yet you will find them a lot cheaper.
- If you have no option other than loans, prefer borrowing from credit unions because they charge lower interest rates.
- If you tend to borrow money from direct lenders, do proper research in order to find the most affordable deal. Also ensure that you will not fall behind on repayments.
To wrap up
If you are struggling with car repair loans, you can consider borrowing money from direct lenders and credit unions. However, university or college students can seek various aid programmes. In addition, you can also choose payment plans that garages offer. If you borrow money from lenders, be careful about the loan deals.
