NEW YORK, March 27, 2023 (Newswire.com) - OneMain Financial: The cost of owning and maintaining an automobile has jumped significantly in recent years. AAA estimated the average cost of operating a new car at $9,666 in 2021. That includes insurance, registry fees, oil changes, general maintenance, and gas. The number does not include expensive car repairs that might require emergency loans.
Kelly Blue Book, the industry standard for auto valuation, reported the average price of a new automobile at $48,043 in June of 2022. That's up nearly 13% from the same period one year ago. Based on that, it makes sense to assume that auto repairs have also gone up in price. Inflation is creeping up on double digits. Paying for car repairs is a challenge.
Americans have been putting off auto repairs
Small problems can become big problems if left unchecked. That's particularly true with automobiles. That annoying tick or hum could be a precursor to a much larger issue. Unfortunately, the rising cost of car repairs has caused many Americans to simply ignore the problem, leading to major mechanical failures.
This is the type of scenario where the most expensive car repairs are often required. Failing to replace a worn-out ball bearing could lead to long-term axle and tire damage. If it falls apart, the wheel could seize up, potentially causing an accident and leaving the car owner with no choice but to get the repair done. The only question at that point is where to find the money to do it.
Getting a loan for expensive car repairs
The easiest way to apply for a personal loan is online. Applications are simple to fill out and many lenders will provide a pre-approval option where they skip a deep dive into the applicant's credit report. That eliminates the risk of a "hard inquiry" hit on the individual's credit score and gives the applicant sufficient information to compare lenders.
Once the applicant chooses a lender, the next step is to submit a full application which will ask for more details about income, employment, and living situation (whether they rent or own). The applicant must also provide their social security number and upload valid identification and tax forms. It usually takes less than 30 minutes to fill out the complete application.
Instant approval is not guaranteed, but many online lenders will approve a personal loan application within a few minutes. Traditional banks take longer. Funds transfers can happen in as little as 24 hours, with same-day transfers possible if the application goes through early enough in the day. These factors all vary by lender, as do terms and conditions.
Specifically searching online for a loan for car repair expenses might not provide a full range of available options. Loans for this type of expense are typically personal installment loans, which are part of a much broader category. They could also classify as emergency loans. Both search terms should provide a list of banks, credit unions, and online lenders.
The Bottom Line: Don't put off small auto repairs
The best way to avoid expensive car repairs is to keep up with general maintenance and fix the small problems when they arise. It may be an annoyance to check out those little creaks and groans the car makes, but they could be a sign that something major is about to happen. If it does, a personal loan for auto repair might be the best option to get it fixed.
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Original Source: OneMain Financial: How to Pay for an Expensive Car Repair