Going Green: Tax Credits, Rebates, and Government Programs
The federal and provincial governments encourage citizens to be mindful about how much energy they use and offer tax credits on sustainable energy use...
Loans Canada: The Country's Best Loan Comparison Platform
Owning a vehicle can be pricey. Although gas, registration, and insurance make up a significant portion of your car costs, repairs are often the most expensive problems. In fact, depending on what kind of car you have, a simple part replacement or fender bender can cost hundreds, even thousands of dollars to deal with.
Luckily, there are plenty of financial solutions that can help you cover the cost of those pesky but important car repairs.
Here are some of the main ways drivers finance their car repairs:
This product allows you to leverage your car’s title as collateral for a secured loan. You’ll have to own said title to qualify, this means there can’t be any liens or existing loans on the vehicle. Additionally, the car must have some resale value. If your car is eligible, most lenders will deposit your loan into your bank account, which you can use to finance your car repairs, then repay in installments over a predetermined period.
Benefits
Drawbacks
Check out if you can get an auto title loan without a clear title.
Similar to an auto title loan, this financing option involves using your car’s resale value to apply for a secured loan. The main difference here is that you don’t need to own your car outright to qualify. Instead, you’ll leverage your vehicle’s equity as collateral. You only need to be registered to drive the car and have comprehensive, as well as collision insurance to become eligible (with most lenders).
Benefits
Drawbacks
A personal loan also involves a lump sum of money being deposited directly into your bank account. However, it’s a much safer option because you probably won’t have to offer any collateral to qualify (although secured personal loans may be available). Once again, you would ideally use your loan to cover your car repairs, then repay the lender through divided installments over several months or years.
Benefits
Drawbacks
If you have really bad credit or a relatively low income, payday loans can be a viable last resort for covering minor car repairs, since they have less strict approval standards than most other forms of financing. They are also readily available across Ontario, both online and at physical sales locations. Most payday loans come in small amounts of $100 – $1,500 and have repayment terms of 14 days following deposit. Just keep in mind that payday loans have extremely high APRs and should only be used as an option of last resort. Taking out a payday loan is almost always a bad financial decision.
Benefits
Drawbacks
In the end, most Ontario drivers will simply use their credit cards to finance car repairs or maintenance issues. After all, it’s one of the easiest and most convenient options, as long as the cost of your repair issues doesn’t outweigh your credit limit. Not to mention, credit cards are fairly standard financial products, so it usually isn’t too hard to qualify for a credit card with appealing conditions.
Benefits
Drawbacks
Unfortunately, even a cheaper car can require pretty expensive fixes from time to time. Don’t worry, because a decent sized loan can help you pay for almost any repair or maintenance problem, including but not limited to:
While an oil change or brake pad replacement may not be too pricey, major car repairs can cost a bundle to finance. For example, a new timing belt can cost well over $1,000 in parts and labour, not to mention the fact that your vehicle may need to stay at the auto shop for several days (and that’s if you find a trustworthy mechanic). So, a loan can be a huge asset, as long as you can handle your upcoming debt responsibly.
Loan Amount | Intrest Rate | Loan Term | ||
![]() | $500-$50,000 | 2.99% to 46.96% | 3 - 60 | Learn More |
![]() | $500-$35,000 | Up to 39.99% | 12 - 60 | Learn More |
![]() | $500 to $15,000 | +18.9% | 6 - 60 | Learn More |
![]() | $500 - $10,000 | + 29.95% | Up tp 48 | Learn More |
![]() | - | - | 12 - 48 | Learn More |
![]() | $500 - $10,000 | 12.99% – 39.99% | 9 - 36 | Learn More |
Qualifying for a car repair loan depends on what type of financing you choose and which lending source you apply with. For instance, banks and other prime lenders have stricter requirements than most alternative lenders. Here are some of the requirements you’ll need to qualify for each type of car repair financing in Ontario.
Different lenders and financing types come with different approval requirements. That said, you’ll usually have to be a Canadian resident, over the age of majority in Ontario (19+), with stable finances, a bank account with direct deposit and a solid debt history to qualify for the best product conditions, credit amounts and rates.
Additionally, your lending source may need to inspect the following documents:
It can be difficult to judge exactly how much a car repair will cost you, until your mechanic tells you otherwise. Thankfully, it’s normally possible to get a basic estimation of how much a car repair loan would cost by speaking to your lender or visiting their website. You can also calculate this figure by considering these factors:
While it can be expensive and time-consuming, there are many scenarios where it’s totally justifiable to finance a newer car, rather than repairing your existing one. For instance, replacing your transmission could easily cost $4,000 – $5,000, which can go a long way toward buying a better used car or making a down payment on a new car.
If so, a loan can be a major asset, as long as you know where to look and determine that the repair is truly worth the money. Thankfully, Loans Canada can connect you with trustworthy lenders and dealerships all across Ontario.
Rating of 5/5 based on 1 vote.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.
The federal and provincial governments encourage citizens to be mindful about how much energy they use and offer tax credits on sustainable energy use...
40 standout leaders in the Fintech space were awarded a Leaders in Lending Award by the Canadian Lenders Association.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan.