A car repair is usually unexpected and can be very expensive, so a loan for car repair must be taken out. Not every car driver has anything like that for you not 2,000 USD for replacing a cylinder head gasket on the high edge.

Use the overdraft facility or take out a small loan

Use the overdraft facility or take out a small loan

If the car repair cannot be paid with savings or reserves, there is always the possibility to use the overdraft facility if you are not at the limit or to take up a small loan that is not tied to a specific purpose. Some car banks also offer a so-called repair loan on favorable terms for vehicles financed by them.

Anyone who urgently needs the car to drive to work or the children in the facilities can usually not wait until they have saved the money with a car repair. If a loan for car repair is taken out, the workshop invoice can be paid with it. This means that the freely disposable income drops even further, but must also be taken into account.

Buy credit for car repair or new car

Buy credit for car repair or new car

With old vehicles, it is often not worth investing a lot of money in car repair, especially if the repair is more expensive than the value of the vehicle. In such cases, it usually makes more sense to look for a new vehicle or a new used car and then finance it.

For new cars, vehicle dealers usually have very favorable conditions with low interest rates. Another advantage is that a new car will initially not need to be repaired unless you have a traffic accident. Then, however, the insurance may pay for the damage.

Which of the variants is preferred must be decided individually. If the repair is necessary due to the age of the vehicle, it should be borne in mind that sooner or later a repair may be due and the credit for the last car repair is not even paid off.