The availability of auto repair credit options in paying for automotive repairs is very helpful. The financial strain, especially on major repairs can be very painful, more so if funding or your credit limit maxed out. Fortunately, some auto repair shops do allow some extension of credit and allows customers to pay off repair bills over time.
Most auto repair shops expect full payment when the vehicle serviced or repaired is picked up by the owner. Cash payment is always preferred by many and some do give discounts as long as customers pay in cash. Auto repair shops prefer this type of payment scheme to do away with credit card transaction fees. Such automotive repair shops do not offer auto repair credit options to maximize income.
Check and Credit Card Payments
Aside from cash payments, most or almost all major repair shops accepts credit card payments, or personal checks. Checks are accepted as long as it is from a local bank. Expensive repair bills of $500 or more often require for the check to be “pre-approved” and/or the client is asked to sign a written agreement which makes them liable if the check bounces.
Other Financing Options
If cash funds are low, and your credit limit is maxed, searching for automotive repair facilities that offer other payment options should be considered. Some repair shops work with finance corporations or banks to provide auto repair credit options or financing. This is typically for major repairs like engine or transmission replacement. Payment terms range from 6 months up to 3 years, depending on the customer’s credit rating.
Home Equity Loans
If all the mentioned payments are not possible, some vehicle owners opt to pay such major automotive expense with home equity loans. If customers have an active home equity credit line, a check can be written against the credit line. It is important to know that its interest rate compared to those charged by credit cards, finance companies or consumer banks, which is currently about 6% to 8%, is 12% to 24%.
Automotive Financial Needs
Private transportation is an important part of any individual or family. From getting to work, bringing the kids to school, and as an actual income generator for those with businesses, the use of these vehicles is crucial for everyday living. Breakdowns can cause a lot of problems, especially for those who highly depend on it. Fortunately, a good number of automotive service providers do offer auto repair credit payment options that could significantly lessen the burden of high automotive maintenance and repair cost.