Car Repair Loans: How to Pay for an Unexpected Bill
Dana is on the way to work when the car starts making a grinding noise. By the afternoon the mechanic has the answer: the brakes need replacing, and the quote is $1,800. Pay day is a week away, and the car is how Dana gets to work and does the school run. It isn’t a bill Dana planned for, and it can’t wait.
Dana is an example, not a real customer.
If your car needs an unexpected repair, you have a few ways to pay for it: savings, a payment plan from the workshop, a credit card, a loan, or help from family. A loan spreads the cost into repayments, but it’s only worth it if you can meet them comfortably. Fundo loans start from $500, and how much you’re offered depends on your application. Approval isn’t guaranteed. Here’s how to work out what makes sense for you.
First, find out what the repair really costs
Before you decide how to pay, get clear on what you’re paying for.
- Get the quote in writing. It should list the parts, the labour and any extras.
- Ask what’s urgent and what can wait. Some repairs are about safety, and some can be done later. Ask the mechanic to separate the two.
- Get a second quote if you can. Prices can vary between workshops, so it’s worth a phone call or two.
- Ask about your options on parts. Different parts can mean different costs and different warranties.
- Don’t drive on a safety problem. If the issue affects your brakes, steering or tyres, sort it out before you get back on the road.
Ways to pay for a car repair
| Option | Good for | Watch out for |
|---|---|---|
| Savings | No interest and nothing to repay | It uses up your buffer, so rebuild it afterwards |
| Payment plan from the workshop | Spreading the cost if the workshop offers it | Check any fees and what happens if you miss a payment |
| Credit card | Paying straight away if you have room on the card | Interest can add up if you carry the balance |
| Personal loan | Spreading the cost over regular repayments | Interest and fees add to the total, and you need to be able to repay |
There’s no single right answer. The best option is the one that covers the bill…
There’s no single right answer. The best option is the one that covers the bill and fits your budget without putting the rest of your month under pressure.
Is a loan for car repairs the right choice?
A loan can make sense for a one-off, unexpected cost like a car repair. It isn’t designed for everyday spending. A few questions help you decide.
- Is this a one-off cost? A loan suits an unexpected bill you can’t cover from savings right now.
- What repayment fits your budget? A repayment you can meet comfortably matters more than the amount.
- What’s the total cost? Look at interest and fees, not just the repayment.
- Can you borrow less? Borrow the amount on your quote, not a round number. A smaller loan means smaller repayments.
- Is the repair worth it? If the repair costs close to what the car is worth, it may be worth weighing up whether to repair or replace.
How Fundo can help
Fundo lends from $500 up to $10,000, depending on your application. You can apply online or in the Fundo app. As a licensed credit provider, we assess whether a loan is suitable before we offer it. That means the amount you’re offered can be lower than the amount you ask for, and approval isn’t guaranteed.
If your repair bill is small, a smaller loan may be all you need. Whatever the amount, borrow what the repair costs and no more.
Avoid the next surprise
You can’t predict every repair, but a few habits make the next one less of a shock.
- Keep up with servicing. Regular servicing can catch problems before they turn into bigger bills.
- Set aside a little each pay. Even a small amount builds a repair buffer over time.
- Act on warning signs. Noises, warning lights and changes in how the car feels are worth checking early.
- Know what’s covered. Check whether any warranty or insurance covers part of the repair before you pay.
Frequently Asked Questions
Can I get a loan for car repairs?
Yes, you can apply for a Fundo loan to help pay for an unexpected car repair, subject to approval. How much you’re offered depends on your application, and approval isn’t guaranteed.
How much can I borrow for a car repair?
Fundo loans start from $500 and go up to $10,000, depending on your application. Borrowing only what your quote needs keeps your repayments lower.
What if my repair costs less than $500?
Fundo’s loans start from $500. If your bill is smaller than that, savings or a payment plan from the workshop may suit you better.
Is a loan better than a credit card for car repairs?
It depends on your situation. Compare the total cost of each, including interest and fees, and choose the one with repayments you can meet comfortably.
How do I know how much to borrow?
Get a written quote from the workshop and borrow that amount. Borrowing a round number or more than you need means paying back more.
What should I do before I apply?
Get your quote, work out what you can comfortably repay from each pay, and check whether savings could cover part of the bill. Then see what you could borrow.
The Bottom Line
An unexpected car repair is stressful, but you have options. Get a clear quote, work out what you can comfortably repay, and choose the way to pay that suits your budget. If a loan makes sense, Fundo lends from $500 and you can apply online or in the app.
Want to find out more?
Disclaimers
Credit provided by Fundo Loans Pty Ltd ACN 604 639 143 Australian Credit Licence 491418 to approved applicants only. Terms, conditions, fees, charges and eligibility criteria apply. See fundo.com.au
The information provided on this website is general in nature and for information only. It is not intended to be relied upon as advice. Before making a decision about any of our products, you should seek your own independent advice and refer to the terms and conditions to ensure that the product is appropriate for your particular objectives, financial situation and needs. See the relevant Target Market Determination before applying.
