Auto Repair Financing
You need your vehicle to get you from one place to another, and if it breaks down, you need to get it repaired quickly without breaking the bank. But what happens if you don’t have the money to pay for the repairs? Luckily, you can choose to finance your auto repair or service so you can make more manageable payments. At Hiley Hyundai of Fort Worth, we know what it takes to get you back on the road for a reasonable price, and we can help you finance any repairs you need.
Benefits of Auto Repair Financing
Routine service and unpredictable repairs are a part of car ownership. Because newer vehicles feature sophisticated and computer-driven technology, costs for repairs continue to rise due to the time and labor required. According to a 2017 survey performed by AAA, the average auto repair bill is between $500 and $600. However, that doesn’t mean that you have to go broke when trying to fix your vehicle. Financing directly through the dealership or repair shop is a solid option when it comes to paying for car repairs, and these are some of the reasons why:
- Better option than payday loans and credit cards: Cash-advance payday loans typically have huge percentage rates, oftentimes forcing you to pay up to 700% in interest. That doesn’t even include late fees. For credit cards, if you already carry a balance, adding more money to it isn’t a smart idea, especially if the card carries compound interest. That means you’re paying interest on your interest.
- Offset insurance deductibles: With higher deductibles, you usually have lower monthly premiums. If you’re involved in a costly accident, you might not have the money to pay the deductible before the insurance money kicks in.
- Fast approval: With auto finance options, you don’t have to wait long to find out if you’re approved. Quick application turnaround, typically online, gives you peace of mind knowing that you can get your vehicle repaired immediately.
- Flexible terms: A quality car repair loan lets you pay on a schedule that works for you. You can make monthly payments over a set time, which may be easier to handle than paying the entire amount upfront. Look for a loan that offers 0% interest when you pay it off within a specific time frame.
What Can You Use an Auto Repair Loan For?
Auto repair loans are similar to personal loans, but they’re specifically meant to pay for vehicle repair costs. They come with various rates and terms, so make sure you read through all the fine print before agreeing to one. These types of loans can cover a variety of unforeseen vehicle expenses, including, but not limited to the following:
- New part installation: This cost can range anywhere from a couple hundred dollars to several thousand, depending on the costs of parts and labor.
- Tire replacement: Replacing your tires can be a costly purchase, especially if you didn’t factor that cost into your budget. Hitting a pothole or driving over a nail can mean immediate tire replacement, and the loan can cover this cost.
- Repairs to pass an emissions test: If you took your vehicle in for the emissions test and you failed, you can’t register your vehicle. You might be able to obtain waivers or qualify for financial assistance programs, but you still need to pay for the remaining costs to bring your vehicle up to code.
- Insurance deductibles: If you have a higher insurance deductible, you need to pay that amount before the insurance company contributes.
- Accident damage repair: Your insurance policy might not cover the entire damage amount, or it might have a high deductible that you must meet. The out-of-pocket costs could be high, and a loan can help cover that amount.
At Hiley Hyundai of Fort Worth, we’ve partnered with DigniFi to provide you with financial assistance to pay for your vehicle repair. With this option, you don’t have to put any money down before we start repairs. To determine if you qualify, fill out an online application, answer four simple questions, and receive an instant decision about your approval and the maximum amount, which can range from $350 to $7,500. If your repairs cost more than the maximum loan amount, you can work with us to pay off the difference.
From there, you can get your vehicle repaired and select the amount you plan to finance. Set up your payment plan, and electronically sign the loan documents. There are several ways you can pay your bill, including the following:
- Go to the website and log in to your account to make a payment. You can also set up recurring automatic payments from your bank account.
- Mail a check or money order to DigniFi.
- Set up online bill pay through your financial institution.
- Call the customer service center and provide your bank routing and account number or your debit card number.
If you pay off the loan within 90 days, you don’t have to pay interest. You don’t have to do anything to have the interest waived, just as long as you pay it off within 90 days. There is no prepayment penalty if you pay off the loan early. However, if you don’t pay off the loan fully within that 90-day time frame, interest will be charged for the full original loan amount. Check the terms of your contract to see what your interest rate is, as it can differ depending on your credit score.
No matter if you purchase your vehicle off our lot or from another location, Hiley Hyundai of Fort Worth knows how important it is to get your car working correctly without breaking your budget. Our certified technicians are ready to help with scheduled maintenance repairs or emergency issues, all of which can help extend the life of your vehicle. Reach out to our auto service center directly to schedule an appointment so you can get back on the road in no time.