Myths about car repair loans busted!!!

In the event of a major mechanical problem with a car, the owner maybe stuck with repair bills that cost anywhere from a few hundred to a few thousand dollars. The unfortunate part about this situation is that the car’s insurance policy doesn’t cover car repairs, thus causing the owner who can’t afford to pay for the repairs, to take out a personal loan from the bank.

Personal loans from a bank or having your car repairs financed can cost you anywhere from 4%-23% in interest fees. Your transmission rebuild that cost you $2000 will now cost you up to $2460. If you are making monthly installments usually the interest of the loan is first paid off then the principal. When you finance it ends up taking longer to pay off your loan due to the ever increasing monthly finance charges.

Another option in avoiding extra fees when your car breaks down is to get an emergency road service program. These services also have discounts available with repair shops and hotel accommodations. Best of all, towing is free in most cases.