Funding help with car repairs: Getting back on the road

When it comes to putting the brakes on life, nothing does the job quite like a broken-down car. Whether you need to get to work, take the kids to school, or do the shopping, when your car is out of action, you need to get it fixed as quickly as possible.

If you have cash put aside to deal with emergencies, fixing your car is simple. But if you don't, what can you do? First of all, don't panic. There are solutions available to you, many of which we’ll run through in the following guide.

In this guide:

• Check if car repairs are covered in your warranty or insurance
• Can I still get car repair help if I have no warranty or cash?
• What to do if you can’t afford MOT repairs
• With any form of credit, finding a responsible lender is key
• Other helpful resources 

Check if car repairs are covered in your warranty or insurance

When it comes to seeking car repair help, this should be your first port of call. If you need car repairs because you’ve been in an accident or your car was hit while stationary, your repair costs are likely to be covered by the other driver's insurance. This means you can have your car repaired at a garage and the insurance company should settle the bill with the mechanics.

If there’s something wrong with your car that wasn't caused by an accident, you may still have the costs covered if your car is under a warranty taken out with the dealership at the time of purchase. Car warranties will range hugely in terms of what is covered, so it's often best to contact the dealership and find out whether you can claim.

Car warranties are there to cover the cost of certain repairs for a limited period of time. New cars are often purchased with a warranty of three years or more, but you can also purchase used-car warranties, which will help cover the cost of repairs for a second-hand car for a certain timeframe.

You’ll probably know whether you have a warranty for your car or not, but you may be unclear on whether it’s still valid and what it covers. If so, contact your dealership or warranty provider for clarity.

Can I still get car repair help if I have no warranty or cash?

If the options above don’t fit your situation, there are alternative routes you can take when it comes to getting financial help with car repairs.

1. Ask family or friends

The cheapest and most convenient solution might be to see if family or friends can help you out, either with the repair itself or by lending you the money to pay the garage.

It's never easy to ask for financial help, but many people find that family and friends are more than happy to lend the funds needed to get their loved one out of a fix – especially if it means you can still get to work or take the kids to school!

2. Apply for credit

If you’re looking for help with car repairs that doesn’t involve asking family and friends, it might be time to look into credit, such as applying for an overdraft or credit card. Borrowing money to cover the cost of emergency car repairs can help provide you with the cash you need to get your vehicle back on the road with relatively little hassle.

However, there are a variety of things you’ll need to take into account before applying. For instance, make sure that you’re in a comfortable position to meet any repayment deadlines, and that you won’t end up in even more financial difficulty.

Alternative credit options can be helpful for covering urgent costs, providing you give them plenty of thought. Make sure to research the costs involved and the terms of borrowing before taking the plunge.

Overdrafts

Banks will often provide new overdrafts or extend existing overdraft limits reasonably quickly, so that the money may be available within a day or so of applying. However, you’ll need to meet strict lending criteria and it's also vital that you are familiar with your bank's overdraft charges.

Some banks charge large one-off fees and high daily interest rates for anyone going even the slightest bit over their arranged limit. Other banks will have hefty interest rates for the general use of arranged overdrafts. Banks are also inclined to change their overdraft terms whenever they like, so borrowers need to make sure they keep abreast of overdraft fees and charges.

Credit cards

The costs involved with using a credit card to cover emergency costs vary enormously from lender to lender. Costs also vary in response to factors like the applicant's credit rating, their employment status, the credit limit and whether they make full or partial repayments.

Some credit card providers will offer interest-free cards for a period of time to certain applicants. These can be a very cheap way to access credit providing you repay the full balance within the interest-free period. Once the initial period is up, the account will usually return to a much higher interest rate, which can prove significantly more expensive than some other forms of credit.

3. Consider taking out a short-term loan

UK lenders may also be able to help you fund your car repairs. Short-term loans (or payday loans, as they’re sometimes also referred to), can provide borrowers with access to emergency cash to help cover unforeseen costs.

When you take out a short-term loan, responsible lenders will check that you can afford to meet the repayments, which are often spread over a few months. This involves checking that:

• You have a regular income
• You haven't had serious problems with debt in the past, which show up on your credit record

One of the key potential advantages of funding your car repairs with a payday loan is that you can often access the cash on the day you apply. Short-term loan lenders tend to operate online, and if you’re approved, you could receive funds in as little as 15 minutes.

Of course, it’s also important to think carefully about whether this type of credit is right for your circumstances. Short-term loans are unsecured, which means they’re not tied to an asset. Therefore, they can be more expensive than other forms of credit due to higher interest rates. And if you miss any scheduled repayments, you may be charged penalties or suffer damage to your credit record.

Other factors to compare include:

• Charges and fees
• How quickly you receive the money into your bank account
• Eligibility criteria
• Late payment penalties
• Whether you can repay early with no charges applied
• Whether you can repay in instalments
• How much you can afford to borrow

What to do if you can’t afford MOT repairs

Facing an MOT can be stressful, especially when you’re met with unexpected repair costs. So, here are some top tips for what to do if you find that you can’t afford MOT repairs:

• Get multiple quotes: You’re not obliged to have the repairs done at the same garage that carried out the MOT. You can always ask for a breakdown of the issues and get quotes from additional garages you trust.
• Explore finance options: Some garages now offer flexible payment options for repairs, allowing you to make payments in instalments rather than all at once.
• Budget effectively: A practical way to avoid MOT stress is to carefully budget throughout the year. Putting aside small amounts each month into an MOT savings pot can help you cover servicing, repairs, and tyre replacements.

With any form of credit, finding a responsible lender is key

We understand that when you’re dealing with emergency car repairs, you may need access to quick and hassle-free funds. As responsible lenders, we’ll never approve our short-term loans without carrying out thorough credit and affordability checks.

Paying back a short-term loan in instalments could potentially be a helpful solution to an emergency financial problem. And providing you can repay on time and as scheduled, they can be affordable, quick, and easy.

However, if you take out a loan that you can’t afford to repay, you can incur extra interest charges and penalties, which can make this form of credit more expensive. Taking out several loans at the same time is never a good idea. That’s why we also limit lending access to ensure our customers are borrowing affordably, and for the right reasons.

Explore more helpful resources

When an urgent expense occurs, like your car breaking down or needing repairs, the main thing to remember is that small financial setbacks don't need to have major repercussions. If you consider all your options, do some research, and borrow responsibly – there’s no reason why it can't be business as usual within a day or two.

Enjoyed these insights and looking for more? Just head over to the Moneyboat blog. There you can dive into our financial wellbeing tips or read our effective monthly budgeting tips.

For independent advice, you can also get in touch with third-party organisations, such as National Debtline, Stepchange.org and Citizens Advice.