If your junk car spends more time in the repair shop than it does in your driveway, you’re probably spending boatloads of money to keep it running. For those on a budget, this can drain a bank account quickly. Older vehicles break down more frequently and can be quite costly.
What do you do when your bank account is dangerously low, but your mechanic keeps asking for more money? Let’s find out in this article!
The Junk Car Dilemma: Finance Repairs or Junk It?
Owning an older car can quickly turn into a financial nightmare. While you may enjoy not handing over a big monthly payment for a new or new-to-you vehicle, it’s not always the smartest idea. In the long run, you may have made the wrong choice.
Point blank: junk cars can be more expensive to operate than much newer vehicles. But when money is tight, how do you finance necessary car repairs?
Financing Options for Junk Car Repairs
When you need to get your clunker back on the road but don’t have the cash to do so, you do have a couple of options for how to finance that much-needed repair. Several lending institutions will be more than happy to help you get your mechanic paid and put you back in the driver’s seat. Although these may seem like a lifesaver, they should be carefully considered before pulling the trigger.
- Use your credit card – Sometimes, that plastic in your wallet can come to the rescue when it comes to paying for a necessary car repair. If your balance is low and the card has a low-interest rate, this may not be a horrible choice.
- Apply for a new card with a low APR – New applicants may be offered an attractive low-interest rate or even a grace period with no interest. Several banks welcome new customers by luring them in with lower-than-usual rates. This could be an option to get your junk car running again.
- Financing with an auto repair chain – If you use one of the big auto repair chains for auto repairs, many of them offer their own financing options. Most will approve you on the spot. However, be aware that many offer very high interest rates.
Using credit cards to finance auto repairs, especially for junkers who have frequent, costly repairs, can be a trap. With interest rates at 20% or more, you’ll wind up spending far more than the costs of the repairs. And if you’re only paying the monthly required minimum, it could take years to pay off a relatively inexpensive repair bill.
Financing Junk Car Repairs vs. Selling Your Car
Paying for junk car repairs with plastic will get your banger back on the road, but at what cost? Many owners of less desirable and difficult-to-sell junk cars have the impression that since they’re impossible to sell, their only option is to continue to put a bandaid on them and hope for the best. Financing junk car repairs with credit is not a smart financial move.
To truly understand the foolishness of financing car repairs, tally up what it’s cost you over the last 6 to 12 months. Then, figure out what your vehicle is worth by using an online car value calculator. If the costs of its repairs are equal to half or more of your junker’s value, you’re most certainly throwing good money after bad. But what other option do you have?
Selling your junk car could pose a problem if you don’t know the best way to sell it. Traditional selling techniques could prove to be frustrating and fruitless. However, selling it to a specialized dealer who purchases junk cars regardless of whether they’re running or not is an excellent choice. Most will come directly to you and haul it away while leaving you with cash, a check, or a convenient Venmo payment. They’ll offer you more than your local junkyard, and you can do everything from your home.
But, if you’re ready to wave the white flag and throw in the towel, you can sell that hole in the wallet to a junk car buyer Los Angeles. Don’t wrack up debt; unload your junker for easy cash.
Financing Repairs vs. Selling Your Junk Car Explained
Junk car owners on a shoestring budget can feel the crushing pain of debt when trying to keep their vehicles running, safe, and operable. Older cars can break down and need costly repairs at the drop of a hat, and these repairs can easily outweigh the vehicle’s worth. Financing repairs with credit can quickly put you in debt. Although they seem like your only choice, the far better choice is to sell your clunker.
Don’t let your hooptie put you in the poorhouse. Sell it to a specialized junk car dealer who will pay you for the privilege of removing that wreck from your life. You can use that cash to put down on a more reliable vehicle.
