What to Do When Car Repairs Cost More Than Your Car Is Worth

What to Do When Car Repairs Cost More Than Your Car Is Worth

The UK car market is much more competitive than many other car markets in Europe. As a result, it is easy to find yourself in a “negative equity” situation with your car and car finance. What does that mean? It means your car may be worth less than the cost of a repair or tire replacement.

The question is what do you when your car has failed the MOT and needs an urgent repair to make it road legal? Financial advisers working for leading UK lenders such as NowLoan come up against this situation on an almost daily basis. Although it may be tempting to sell the car to a second-hand car dealer or scrap yard for parts, you should explore what options are available.

Should I Use My Credit Card to Pay for the Repairs?

On the surface of it, this sounds like a really good idea. But, before you get your credit card out, you really should find out how much it will cost you to put the costs of the repairs on your credit card. Many of us don’t think of credit cards as a loan payment, but you are borrowing money when you pay by credit card.

How you pay for your credit card loan is up to you. You can pay the entire balance of the card off with your next pay packet, or pay in installments. But, paying in installments can easily cost you more than taking out a personal loan. Contact your credit company and check out the interest rate before you pay.

Normally, the interest rate on credit cards is high, and you can end up paying more than you would if you took out a personal loan.

What You Need to Know About Borrowing Money Quickly in the UK

Can you borrow money quickly in the UK and take advantage of more competitive interest rates at the same time? You certainly can. To do so, you will have to move away from traditional lenders and think outside of the box. Independent financial companies or services do a good job of finding personal loans that offer competitive rates of interest.

Of course, all of this depends on the size of the repair bill. But, as all car owners know, even tires for a car can cost a lot of money. Regular maintenance such as servicing can depending on the make and model of your car, cost a king’s ransom. When you are a car owner, you always have to be prepared to spend money.

Do I Need to Have a Perfect Credit Score to Borrow Money Quickly?

It is not always necessary to have a perfect credit score when you want to borrow money quickly in the UK. Top lending companies such as NowLoan are happy to help borrowers with less than perfect credit scores.

Thanks to the Internet, the UK finance and loan market has opened up, and you can now find many lenders online. If you don’t want to fill in forms, many companies offer a telephone service.

Settling a car repair bill by credit card may have been the way your mom and dad always did it. Thankfully, younger lenders are more financially savvy and know there are other ways to borrow money quickly to pay for an unexpected car repair bill or regular car maintenance cost.