Using a payday loan for car repairs

It’s never a great time for your car to suddenly break down on you. A tyre blow-out, an engine fault, or MOT failure can derail your week — and your budget. When you don’t have the funds on hand, a payday loan for car repairs can be one option to get you back on the road.

When you don't have the spare money on hand, a payday loan for car repairs is one of the most common reasons people turn to short-term borrowing. And while it can be one practical option to get you back on the road, this guide will also outline some alternatives that you might not have considered.

In this guide, we’ll walk through:

• Common repair costs that catch people out
• Why car repairs often feel so urgent
• What to consider before you take out a loan
• Pros & cons of using a payday loan for car repairs
• Can you pay for car repairs in instalments?
• Alternatives to a payday loan for car repair
• Getting you back on the road

Common repair costs that catch people out

Knowing the common costs helps you feel more in control and make smarter choices. These are some of the repair types that frequently catch people out:

• Tyres & punctures: A single new tyre or a full set can cost quite a bit, depending on the brand and your car model.
• Brakes: Pads or discs replacements aren’t cheap, especially on premium models.
• MOT failures & remedial work: Issues found during mandatory MOT checks often lead to extra costs – such as  suspension, emissions, sensors.
• Unexpected breakdowns: Engine, transmission, or electrical faults – these can escalate quickly and unexpectedly.
• Routine maintenance turned urgent: Things like the battery, alternator, or belts – parts you might delay replacing, but which can fail at the worst possible moment.

Each of these repairs might range from modest (low hundreds) to major (thousands), depending on the vehicle and the parts required.

Why car repairs often feel so urgent

There’s a particular urgency about car repairs that sets them apart from other household costs. We understand the pressure you might feel:

• You might need the car for work, school runs, or family commitments.
• Delaying a repair can sometimes make the original problem worse, leading to more damage and higher bills later on.
• In some cases, safety risks (like steering or brakes) mean you can’t legally drive until the car is fixed.
• If you have no backup transport, the disruption is immediate and often expensive – like having to rely on taxis.

Because of that, many borrowers feel pressured to fix things quickly, which is where short-term loans tend to enter the picture and can help.

If you're reliant on your vehicle and find yourself needing a new one, but worried your credit score might hold you back, you can find out more in our how to get a car with bad credit guide.

Pros & cons of using a payday loan for car repairs

Here’s where we go deeper than surface-level lists:

Pros

• Speed and convenience: Many short-term lenders operate online, and you could get funds fast (sometimes within hours).
• Flexibility: You might have an option to repay over several instalments rather than all at once.
• Accessibility: Some lenders look beyond credit score and into affordability.
• Bridging the gap: If the repair is urgent and you have no other source, it can be a lifeline to avoid more damage or penalties.

Cons

• Higher cost: Because it’s short-term, interest rates and fees can be steep.
• Short repayment window: You’ll need to repay quickly, and missed payments can damage your credit or incur extra fees.
• Over-borrowing risk: If you borrow more than you can manage, you can spiral.
• Not a sustainable strategy: If this becomes a habit, it may indicate deeper cashflow issues.

The key is to balance urgency with responsibility: borrow only the minimum you need, and ensure you can repay without undue strain.

Can you pay for car repairs in instalments?

Yes, in many cases you can. You’ll find that plenty of garages now partner with finance providers or offer their own "repair now, pay later" schemes, which allow you to split the costs over a few months (often with interest). You can also look into whether you can pay for car repairs with a credit card.

If your garage doesn't offer a payment scheme, a short-term loan is an alternate way to spread the cost across instalments. However, you'll want to compare the effective cost (interest + fees) of the loan versus what the garage might charge. Always read the full terms before committing.

Alternatives to a payday loan for car repairs

If you’d prefer not to borrow, or want to explore other ways to cover the cost, there are several options to look into:

• Garage financing or “pay later” schemes: Some garages let you spread the cost of repairs over a few months.
• Personal loans: A longer-term loan may offer lower interest, depending on your circumstances.
• Credit cards: If you can access a 0% introductory rate, this could be a lower-cost short-term option.
• Government or benefit-linked support: You might be eligible for a Budgeting Loan or grant to help with essential costs.
• Community or charity support: Some councils and charities offer hardship funds or emergency assistance.

For a closer look at these and other options, take a look at our full guide on funding options for car repairs.

What to consider before you take out a loan

Before you commit to borrowing, it helps to stop and ask yourself a few questions:

Borrowing for repairs is a tool — not a guaranteed fix. Use it only when it’s justifiable and sustainable for your finances.

Getting you back on the road

Car repairs are one of those costs that sneak up when you least expect them. A payday loan for car repairs can be a practical option when you need to act quickly, but it’s crucial to understand the costs.

Before borrowing, weigh up how urgently you need the repair, whether you can comfortably repay, and if less expensive alternatives exist. If you decide a loan is the right choice, we’re here to help you keep it minimal and manageable.

To explore how a Moneyboat loan could help in car repair scenarios, see our car repair loans page.