Whether a diesel work truck, a fleet of diesel work trucks, or a diesel passenger automobile, repairs can be expensive for those on a tight budget. This is why Village Diesel Works offers financing solutions to our customers who need them. Credit Karma also discusses financing options for automotive repairs. Traditional financing options are safer than alternative options for those with poor credit. Unfortunately, your credit may determine which option will work for you.
Traditional and Safer Financing Options
Traditional financing options include bank or credit union loans and low-interest credit cards or lines of credit. Those with stellar credit and a good debt-to-income ratio often qualify for personal loans or low-interest credit options. If you are in good standing with your bank, and you have collateral that the bank can use to back up any personal loan, you may be able to obtain a traditional financing option that comes with a lower interest rate and more time to pay back the loan.
If you already have a low-interest credit card or line of credit that is not maxed out, this, too, can help you pay for your diesel repairs without too much stress. Regular credit cards come with very high interest rates, sometimes as much as 20 percent or more. This adds up quickly and leaves you unable to pay off your diesel auto repairs. Credit Karma recommends using the credit card option only if your existing card has low interest or you can apply for a low or no-interest card.
Untraditional and Riskier Financing Options
This does not mean that those with poor credit or no collateral don’t have financing options. They do. Unfortunately, these options often come with very high interest rates, as much as 300 percent in some cases. This makes it nearly impossible for people to pay off the financing. In addition to high interest rates, the terms to pay back this financing can be as little as one week to 30 days. Common alternative financing used for auto repairs includes payday and title loans.
As you probably already know, payday loans are based on your income. The lender looks at how much you make each pay period and gives you a loan based on that amount. You will be expected to pay back the loan plus interest on your next payday. Title loans are based on your vehicle’s title, so if you own your car, this option is available to you. You secure the funds by turning over your automobile’s title to the lender. You don’t get the title back until you pay the loan off.
Village Diesel Works in Woodbury, MN, works with Sunbit, Inc., to help our customers who are struggling financially to finance their automotive services and repairs. You can apply for financing prior to your visit to our diesel service shop in Woodbury.