Someone has to pay for the repairs
No matter how good a policy you may have, there are times when an unexpected repair bill comes in, and the insurance company refuses to pay out. It’s enough to send you into a fit of rage. But at the end of the day, you need the car and shouting down the phone isn’t going to change anyone’s mind. So what can you do?
Even if you have one of those fancy new 5-year warranties from the likes of Citroen of Peugeot, you still may not be covered. Perhaps you bounced your car off the garage wall or drove it into a concrete bollard. Whatever the mishap, here are a few ways to pay for repairs without dipping into the rainy day fund.
Credit card
The obvious choice is, of course, to whip out the plastic. This is an ideal option if your bill isn’t too high as you can just stick it on the card and pay it off next time your salary comes in.
But if you’ve done some serious damage to your car, you might not want to max out your card and leave yourself with no access to emergency funds over the next few months. It’s good for small bills but if anything over a thousand dollars, better to go with our next option.
A short-term loan
The short-term loan is a great way to get cash in your hands as soon as possible. This makes it ideal for drivers who need their car for work. Another benefit of this type of loan is that it’s a bad credit loan. It means that you can get one no matter what your credit score is like.
Now you may think that short term loans have high-interest rates but so too does your credit card. The difference here though is that unlike a credit card, the nature of this loan encourages you to pay it off as soon as possible. And getting rid of debt as soon as possible is always a good thing.
Ask about credit
This is an option that very few people ask for or even know they can ask for. Consider asking your mechanic if there’s a credit option for the parts required for your repairs. The parts supplier might be able to open a line of credit that allows you to spread out your payment so you don’t need to pay it all in one go.
However, it’s important to note that this only applies to the cost of the parts. You’ll still need to pay your mechanic for any labour as soon as you receive your bill.
Shop around for a good deal
There’s absolutely nothing wrong with asking your mechanic for an estimate on repairs and then shopping around for a better deal. You’d be surprised at the difference in price at some repair shops. This is particularly true if you compare prices from a dealer and an independent mechanic. So trust us; always shop around.
If the worst comes to the worst, you can always dip into that rainy day fund but who really wants to do that. No, we’re pretty sure that if the time comes and your insurance company says no, one of the options above will work out just fine. Just remember, don’t panic, there’s always a way to pay a bill.
