How To Pay For A Big Car Repair

At some point, your vehicle's likely to break downward. Don't let car repair costs pause your bank too.

In that location are a multitude of things that tin can go wrong when y'all own a car, from a fellow shopper swinging their car door into yours to create a gnarly paring or a pesky bank check engine calorie-free glowing a sickly amber on your dash.

Cars seemingly take a style of knowing when y'all're strapped for cash, likewise. On a week when your rent's due, you've lost three days' pay to recover from the flu, and you just bought groceries, you could near bet that yous'll hear a rrrng-ding-bang from somewhere in your car.

And so what do yous exercise when your car breaks downwards and you can't afford to repair it, or repairing it means skimping on other bills? Fortunately, you can do some early on planning and so that a brake replacement (or another repair) doesn't break the depository financial institution.

How Much Do Car Repairs Cost?

A 2022 AAA survey found that the boilerplate auto repair cost is between $500 and $600. Such a price isn't insignificant; the same survey found that 64 meg Americans would get into debt to pay for such a repair.

Maintenance is another significant factor in the toll of owning a car, and lack of maintenance can complicate — and increment the price of — car repairs. In other words, if you've neglected to properly maintain your auto, the cost of repairing information technology could quickly exceed the average.

Types of auto repairs

Non all auto repairs are equal. Buffing out a ding from the quarter panel differs from replacing the ignition in both cost and importance.

Naturally, body repairs are usually the least expensive and include:

Type of Machine Torso Repair	Average Toll
Dented bumper	$350 to $450
Deep or all-encompassing damage to paint	$300 to $1,000 for a single-stage glaze of pigment; $one,000 to $iii,500 to repair and pigment over deeper or more extensive damage
Cracked windshield	$110 for repair; $410 for replacement
Strut or shock cushion replacement	$488 to $597
Wheel alignment	$115 to $302
Brawl joint replacement	$225 to $285
Rear-end damage	Hundreds to potentially tens of thousands of dollars (depending on severity)

A glowing cheque engine light tin can signal anything from a minor issue to something more severe — and expensive. According to the CarMD 2022 Vehicle Health Index, the x most common check engine repairs are:

Blazon of Replacement	Average Toll
Catalytic converter	$1,375.70
Oxygen sensor	$245.88
Ignition coil and spark plug	$386.89
Loose fuel cap tightening or replacement	$25
Mass air flow sensor	$345.69
Ignition coil	$214.98
Evaporative emissions purge control valve	$144.07
Fuel injector	$457.63
Evaporative emissions purge solenoid	$150.85
Thermostat	$240.46

Other vehicle components are also prone to failure and tin pb to a hefty repair or replacement toll. Vehicle service contract data compiled by RateGenius showed the about frequent component failures in 2022 were:

Blazon of Component Failure	Boilerplate Merits Amount
Water pump	$533
A/C compressor	$890
Alternator	$511
Transmission/drivetrain	$2,756
A/C condenser	$836
Interruption control arm	$747
Radio	$812
Rack and pinion gear	$i,245
Engine — complete assembly	$3,269

Repair costs increase for luxury or sports cars, so yous may be on the hook for repair costs that exceed the average.

Does Car Insurance Embrace Auto Repairs?

Machine insurance doesn't cover the cost of maintenance or regular repairs, similar a wheel alignment or water pump replacement. However, collision coverage does pay for repairs stemming from an accident, whether it involves just your vehicle or another vehicle or object.

As its name implies, comprehensive coverage protects against more than than collisions, including damage from:

Animals,
Natural disasters and burn down,
Rioting and vandalism,
Theft of all or role of the car,
Falling objects, and
Broken windshields.

If your auto needs repairs following a covered result, swell! Your insurer (or the insurance company that covers the commuter who hitting you) will pay for the cost of repairs, minus your policy's deductible.

What car insurance won't encompass are all the other potential ways your car can go kaput.

9 Ways to Pay for Car Repairs

Planning for the eventuality of motorcar repairs means you lot don't accept to rely on whether or not machine insurance covers the cause.

Earlier getting overwhelmed by the potential of a large car repair bill, consider the options available to yous and your upkeep and figure out what methods work to pay for your machine repairs.

1. Mechanical breakup insurance

Mechanical breakup insurance, or MBI, is a blazon of insurance that pays for the repairs to certain (you guessed it) mechanical breakdowns.

Substantially, MBI covers harm to your car resulting from incidents that wouldn't be covered by your normal auto insurance. In other words, if y'all get into an accident, car insurance will pay for repairs, but if your engine lights up similar the Fourth of July on your manner to piece of work, MBI would boot in to repair and replace it.

MBI covers:

Electric systems
Oil pumps
Timing gears
Valves
Brakes
Transmissions

Mechanical breakdown insurance does not embrace wear-and-tear or the price of maintenance, though some policies may provide coverage for A/C, steering, or fuel systems.

Like car insurance, MBI policies typically have a deductible. However, MBI isn't available for every machine. An MBI policy can merely exist purchased for a new car or a car below a certain mileage (as divers by the specific policy).

2. Warranties

Different types of warranties are bachelor depending on how you purchase a car and if it'southward new or used.

Factory or manufacturer'due south warranties

Mill or manufacturer's warranties are standard warranties included in the purchase of a new car. They're generally comprised of multiple types of warranties that provide different coverages with the sole caveat that the covered incident must be the result of a factory defect.

In other words, if a role fails or breaks of its ain accord (for instance, by misuse, wearable-and-tear, lack of maintenance, or as the upshot of an blow), a manufactory warranty won't help you.

For case, a steering wheel upshot acquired past a software glitch or faulty power steering motor assembly could pb to a recall and repair covered under your factory warranty.

The different components of a factory warranty are in forcefulness for diverse lengths of time, depending on the type of coverage provided. For instance, bumper-to-bumper coverage is often considered the virtually comprehensive aspect of a factory warranty simply is probable the first warranty component to expire.

In some cases, you lot may be able to extend manufacturing plant warranty coverage after information technology expires.

Dealer warranties

Warranties offered by dealers, especially in the auction of a used car, include:

Unsaid warranties: an unwritten promise that a used car's basic functions work and the motorcar runs.
Limited warranties: a blazon of warranty that specifies certain aspects and components of the used car are covered and volition be serviced by the dealer.
Total warranties: guarantee gratis repair or replacement of covered components and systems within the warranty menstruation (regardless of owner). If a repair is impossible to complete, the vehicle owner is entitled to a vehicle replacement or full refund.

Naturally, limited warranties are near commonly offered by used machine dealers. However, dealerships may instead sell a automobile "as-is" to reduce or fully remove some or all unsaid warranties.

Extended warranties

Extended warranties are often referred to as "service contracts," but the ii products are not necessarily the same. Even more disruptive is the wrong interchangeability betwixt extended warranties and MBI.

In the latter example, extended warranties are not an insurance product. Where insurance companies offer MBI, a wider swath of providers can offer extended warranties. Furthermore, extended warranties aren't offered by just the manufacturer or dealer.

3rd-party or standalone extended warranties provide varying types of coverage depending on the specific programme, only routine maintenance and habiliment-and-tear are unremarkably not covered. In some cases, you may exist able to buy "wrap" coverage that would pay to repair anything other than the vehicle'south powertrain.

Some extended warranties provide additional protection and extras, such as roadside assist, towing, and rental car reimbursement.

Because extended warranties can vary then wildly in coverage, advisedly read over the policy earlier purchasing it to ensure it offers the protection you want and need.

3. Vehicle service contracts

Vehicle service contracts are optional plans sold by manufacturers, dealerships, and third-party providers. They can exist purchased at the same time you buy a new or used car or later on, and are available for older cars or those with high mileage.

VSCs provide more than comprehensive coverage than warranties. Typical VSCs provide coverage for mechanical bug, including relatively simple fixes — like air-conditioning on the fritz — or more pressing (and expensive) bug, such as an engine replacement.

Vehicle service contracts do not encompass cosmetic issues, routine maintenance, or wear-and-tear. Some VSCs also include a number of "exclusions" — specific parts or situations non covered by the plan in question.

Considering these exclusions are then specific, yous may be responsible for paying for a portion of a repair that's otherwise covered if a certain office is excluded from coverage.

Every bit a bonus, many VSCs provide extra coverage in the form of roadside assistance and towing and rental reimbursement.

4. Personal loans

Personal loans can serve equally a means to pay for machine repairs without leaving you lot bankrupt. You tin apply for a personal loan at your preferred bank or credit marriage, and many fifty-fifty offering online applications. In many cases, personal loans are deposited into your bank account by the next business day.

Friends and family can as well offer you a personal loan, though be wary of but how personal it can go when borrowing from someone you know (and exist sure not to take advantage of their kindness, either).

Money borrowed through a personal loan can be used for whatever purpose and, subsequently, whatsoever sort of auto repair. So long as you borrow plenty to comprehend the mechanic's bill, yous're clear and golden.

The merely requirement is that y'all pay back the loan — both the principal and any accumulated interest — as agreed. All the same, considering personal loans are installment loans, the corporeality you've borrowed is broken upwardly into much more affordable monthly payments compared to the full and upfront toll of paying for repairs with your savings.

five. Auto repair loans or payment plans

Some mechanics and repair shops offering motorcar repair loans or other types of financing options.

Larger mechanics, like bondage, may offer an auto repair loan or payment plan themselves. With a payment programme, you're responsible for making installment payments directly to the shop. Other mechanics, specially smaller auto shops, work with a network of lenders to offer loans to customers.

One time your loan has been approved, the lender may pay the repair shop itself or effect you a credit card to pay the mechanic yourself.

Regardless of which option y'all choose or is available to you, the money you borrow or use must go toward:

Repairs and service,
Maintenance,
Tires, and/or
Your insurance deductible.

Funds typically can't exist used to pay for your extended warranty or any prepaid services. Non-essential parts, installations, and repairs aren't typically covered either.

6. Credit cards

16% of Americans would use a credit card for an emergency, such as an unexpected automobile repair. Maintaining an emergency credit menu isn't a bad idea, though it's not always the best idea to rely on information technology every bit your beginning choice.

Withal, sometimes the stars simply don't align. If your car's out of warranty and not otherwise covered, you don't take plenty savings to cover a repair, and you tin can't or don't desire to use for a loan, a credit card can make the difference between you getting to piece of work or not.

By paying with a credit card, you're not restricted from what services or components you lot can have repaired or replaced. Instead, you're express by the available credit yous accept on your card. If the cost of repairs exceeds what y'all can charge to your card, you may take to make up the difference through another method.

7. DIY

A wealth of resources are available to guide yous through performing some less circuitous repairs yourself.

By taking the DIY route, you could feasibly save hundreds — or even thousands — in exchange for a little effort, the price of parts, and maybe a example of beer or ii for a friend.

If yous're not mechanically-inclined or merely not interested, consider buying used parts online or from a local auto shop or junkyard, then having them professionally installed at the mechanic of your choice. This path will exist more than expensive than doing it all yourself, but you'll also exist saving money by not paying for new replacement parts.

eight. Contribute to a dedicated savings account

One of the easiest ways of avoiding the stressors of an unexpected car repair is to save for repair costs beforehand. Strive to sock away money — or auto refinance savings — into an emergency fund for the inevitable trip to a mechanic.

Your savings can be used for repairs of whatsoever nature, and many banks and credit unions offer options to automatically eolith a portion of each paycheck into a savings account. Over time, these relatively small deposits add up and can eventually become toward car repairs or maintenance.

9. Sell your automobile

Sometimes repairing a car just isn't worth it to you merely is a quick fix to someone else willing to take the car off your hands. As a event, you could sell your cleaved auto for greenbacks to be used as a down payment for a new car or to purchase a used car outright.

If your auto'due south not in sellable condition or you're simply sick of trying to get rid of it, you could besides try parting it out for cash. DIYers and local mechanics can use the functioning components to repair a automobile in better condition or Frankenstein one back to life, and you tin can use the greenbacks to get back on the road again.

What Car Repair Payment Methods Should I Avoid?

Some methods of paying for auto repairs can get yous back on the road, but can cost you far more in the long run. Steering clear of ill-advised payment options and unscrupulous lenders can save you from a bigger headache than figuring out how yous'll pay to set your automobile through 1 of the methods to a higher place.

Title loans

A machine championship loan is a short-term loan in which you sign your machine title over to a title company, which, in turn, uses your car equally collateral. You are then loaned a percentage of your motorcar's value that tin can exist used for car repairs or other purposes.

Title loans do not impact or take into consideration your credit score, simply usually require full repayment — including involvement — inside 15 to 30 days.

According to the Consumer Financial Protection Agency, the typical April of a title loan is 300%, which makes this form of financing incredibly expensive. In add-on, borrowers must ordinarily pay fees for taking out a title loan.

The CFPB has constitute that four out of five borrowers fail to pay off a title loan in a unmarried payment, prompting them to roll over the loan from month to month and incurring higher involvement charges and fees.

Because your auto is used every bit collateral, defaulting on a title loan means the lender will seize or repossess the vehicle. I out of every five borrowers lose their vehicles to a title loan company for failure to pay, according to CFPB research.

Payday loans

Payday loans are likewise chosen cash or check advance loans and stand for some other type of short-term financing with an extremely high interest charge per unit. Payday loans are based on a combination of your income and credit. The average payday loan amount is most $500 with an APR of 400%, along with other fees.

Repayment of a payday loan, including involvement, is typically due upon your adjacent payday, hence the name. If you fail to pay dorsum the loan on fourth dimension, the lender continually rolls it into a new term while adding additional fees and penalties, on peak of accumulating involvement.

Payday loans narrowly vanquish title loans considering they're unsecured — the lender has no collateral to repossess. Still, considering of fees and exceptionally high interest rates, they can be hard to pay off in time and should exist avoided to the best of your ability.

Practise GAP Waivers Pay for Auto Repairs?

GAP coverage, or guaranteed asset protection, is sold in the form of a waiver or insurance policy and helps cover the gaps between what y'all owe on your machine loan and what your auto insurance pays out for a covered incident.

But how does GAP help in the case of car repairs?

Short answer: It doesn't. GAP just covers events in which your machine is a full loss. Even if you intend on tying some chip together and pedaling your totaled car similar Fred Flintstone, GAP isn't a production that will help you lot with any mechanical breakdowns or malfunctions.

Tin can I Negotiate the Cost of Vehicle Repairs?

Whether you're paying with your ain greenbacks or through a loan, the less repairs cost, the less you spend overall. As with most interpersonal situations in life, communication is central.

Offset, exist prepared to shop around. Unless you need to have your car repaired at a specific authorized repair facility to satisfy the requirements of a warranty or other policy, take 1 store's guess to a competitor to see if you can get a better deal.

Bear in mind that shops aren't typically able to reduce their labor cost or fixed-price services. Nevertheless, as with DIY repairs, you can opt to use non-OEM, or non-manufacturer, parts to reduce repair costs. Some "broken" components don't need to be replaced right away, either.

Attempt explaining your financial state of affairs to your mechanic, likewise. If you lot've washed your research to find a reputable and trustworthy shop, your mechanic might exist more willing to piece of work with yous on cost or means to brand your vehicle at least roadworthy, if fixing it entirely is out of your budget.

How to Avoid Costly and Unexpected Motorcar Repairs

Ultimately, the cardinal to avoiding costly automobile repairs is to maintain your vehicle. Though there's no guarantee something won't go wrong, proper maintenance can nip a lot of problems in the bud before they become expensive — or prevent the consequence entirely.

By staying up-to-date on replacing fluids, checking your oil, keeping it clean, and otherwise taking care of your vehicle, you can stave off the worst of overwhelming automobile repair bills.

Sure, there's some cost involved in maintaining your automobile, but information technology's also an investment in your vehicle's longevity, your long-term finances, and your stress levels.

If all else fails, planning alee and knowing how to pay for auto repairs can reduce your stress and out-of-pocket expenses if and when your car breaks downwards — and go on you lot abroad from predatory practices like title and payday loans.

Daniel Mattia

Daniel Mattia is a freelance content writer and writer. He's written extensively about insurance, personal finance, and small-scale concern. Daniel's past and current clients include The Zebra, Bestow, Ensurem, and others across a diversity of industries.