Small businesses which rely on vehicles must keep the cost of repairs and maintenance into consideration, and make it part of their budget. As per the AAA, the yearly cost of maintaining a vehicle is upwards of $700. Many vehicles in the US lie unrepaired because the cost of repairs is too high. In such situations, some owners tend to resort to pawn shops and payday loans, which carry very high interest rates. Auto repair loans however can be accessed at reasonable rates to get the vehicle up and running.
Owning a vehicle comes with warranties and insurance, and these can stand in good stead in case of any breakdowns. Not all insurance however covers repairs and warranty periods can expire soon. In such cases, it makes sense to explore the cost of auto repair loans and get the vehicle repaired before further damage occurs.
Auto repair loans are meant to offer short duration financial assistance immediately, so that owners do not have to wait for lengthy bank approvals. An unsecured personal loan comes without a collateral, and with alternative and online financing platforms, approvals can be quick. These loans come with a fixed interest rate, and need repayment in a few years.
As with other loans, auto car loan approval takes into account credit scores and histories. Poor scores could thus mean higher interest rates. Another way to raise repair money is to consider home equity loans or cash-out re-finance.
Auto dealers and repair shops too offer financing for repairs and maintenance. These can come handy and small business owners can scout for which dealer offer the best rates. Given the high cost of vehicle repairs, a strategy in place can save valuable money for small businesses.