If your car is in need of a repair then you could be worried about where you are going to get the money to pay for it. Borrowing might be your only option and if you have a poor credit record or need the money quickly, it could be that a payday loan is the best option. However, it is worth thinking through your decision.
Is the repair necessary?
It is worth thinking about whether it is really necessary to have the repair or whether it is necessary right now. It very much depends on what needs doing as to whether it is safe to drive the car without having it done and whether not getting the repair is causing damage elsewhere on the vehicle. If it is just cosmetic then it could be worth waiting to save up for the repair rather than having it done and paying for a loan to get it done. The loan costs are likely to be very high and not worth it for an unnecessary repair. If it is urgent it is worth thinking about whether you can manage without a car for a while as you save up for the repair. However, if you need to have it done for safety reasons or because it is causing more damage and you do not have the money, then a loan will be the only option you have if you want to continue driving the vehicle.
Compare prices and look at alternatives
Before having any repair it is worth thinking about the cost and whether it is worth investing the money in the car. You could feel that because the car is old or has had a lot of repairs it could be better to get another car and scrap this one. This is obviously a more expensive option in most cases but might be better than to keep paying for repairs on a vehicle that is past its best.
If you do decide to get it repaired then you need to take a look at all of your options with regards to garages. There may be different places that you can go and they will charge different amounts of money and so you need to see if you can find the cheapest so that you do not have to borrow more money than necessary.
Compare loan types
You should also compare your loan options. There will be different ways that you can pay, but what loans are available to you will depend on your credit record. If you have a poor credit record then it may be that a payday loan is the only option. Also, if you need the money quickly and do not have time to arrange a different type of loan it could be the most suitable.
However, if you do have a good credit record or can wait a small amount of time for the loan, then you might be better using an alternative. You might want to consider an overdraft, credit card or small personal loan instead. These are usually cheaper as long as you repay them fairly quickly. You might want to do some calculations in order to compare them and see how the costs compare. It could be worth waiting for one of these to be approved compared with getting a payday loan right away.
If you do go for a payday loan make sure that you are prepared for the repayment. It is normally just one lump sum repayment which is paid on your pay day. This can make it more affordable but you still need to be confident that you can afford all of your bills as well as the loan repayment.
Compare loan costs
Make sure that you compare the costs of the different loans to see which will be the cheapest for you before you sign up. This is sensible whatever type of loan you are planning on using. With payday loans there are lots of companies that offer them and you should be able to compare them fairly easily as they tend to have a calculator on their website. If you are unsure then get in touch with the lenders and ask them.
So, whether you should use a payday loan for a car repair is not an easy question to answer. With all types of borrowing you need to be careful and only take on what you can afford and what looks to be a competitive price. It can be best to wait for a conventional loan which could be cheaper or for longer so that you have the time to save up for the repair. Obviously, this will depend on how urgently you need the repair to be done and whether you can manage to continue to use the car without it being done or whether you can manage without the car entirely. A payday loan should only be taken if you are confident that you will be able to manage the repayment which is usually a lump sum and therefore can be tricky to afford.