Is your car beginning to get up there in age? If that's the case, it could start giving you trouble any time now. Once major components break, they hit you where it hurts—your pocketbook. That's because some auto repairs aren't cheap. Instead, they leave you feeling financially drained after getting any of the components fixed.

For example, if your vehicle needs an engine replacement, you'll probably pay about $3,000 to $4,000 for the service at a local shop. For owners who take their cars to dealerships, that same project could easily balloon to around $7,500 or so. Meanwhile, if the transmission gives you fits and needs to be replaced, say goodbye to around $5,000.

As you can see, the prices for professional services can get out of hand in a hurry. That's why you need to make sure you know how you're going to pay for repairs when they arise. After all, the last thing you need is to be stressed out figuring out where to come up with the cash to fix your rides. A used car warranty is one way to ensure you have the funds when an unexpected issue pops up.

Used Car Warranties

Used car warranties are commonly referred to as vehicle service contracts. People purchase the plans to save money on auto repairs. On average, policyholders pay around $1,500 for extended car warranties. But on occasion, some guarantees can cost as much as $3,000. Although that may seem a bit pricey, the expense could be minimal in comparison to what you would have to pay out of pocket without a warranty if your vehicle continually breaks down.

Don't just sign up with the first vehicle service contract or VSC company you find. That could wind up being a major mistake as the business might be a scam. Scammers are aplenty in the extended car warranty industry, so take the time to research the companies you want to do business with. Look online at reviews and testimonials to see what people say about the company.

If you'd like to dive even deeper into the matter, ask friends and relatives about their vehicle service contract experiences. You should be able to trust the opinions of those close to you, as they won't want to steer you in the wrong direction. Thus, do your homework and find a legit warranty company so that you don't get taken advantage of.

Get a Personal Loan

When hundreds to thousands of dollars in auto repairs enter the picture, that can feel a bit overwhelming, especially if you don't have the cash in the bank. But don't get down in the dumps when financial challenges present themselves. There are plenty of ways to get your hands on money to get your car back on the road. For instance, you can obtain a personal loan from a bank to pay for repairs.

Then again, car title and payday loans are solutions too. Look into title loans in Michigan for best offers! Or would you prefer to borrow some funds from your parents, grandparents, or other family members? The point is that funding is available for auto repairs. You just have to know where to look.

Dip Into the Emergency Fund

People create emergency funds for different reasons. Perhaps you want money built up in case a natural disaster, like a hurricane or earthquake, occurs. How about for when appliances die? You can create an emergency fund to replace your washer, dryer, or refrigerator when they go out. Regardless of why you already have an emergency fund established, you could always dip into it when car problems develop.

That will give you the money to pay for the repairs. However, you should make a point to put the cash back as soon as possible. Then, if whatever the money was saved for goes wrong, you'll have the funds to take care of it.

Use a Credit Card

If you're still searching for a way to pay car repair bills, how about taking out a line of credit? Get a credit card specifically for that purpose. Then, only use the card to charge maintenance or repair procedures. In addition, make sure to pay your payment on time to improve your credit score. That will also keep the line of credit open so that you can use it repeatedly. Whenever possible, you should even attempt to pay a little extra on the bill, as that might increase your credit limit.

Let Insurance Cover Auto Repairs

Unfortunately, accidents just happen. If you are involved in an accident with a negligent driver, their insurance should cover the costs of your damages. But if you're to blame, your insurance will handle repair prices. So, let the insurance company of the responsible party cover repairs when applicable, but be careful filing claims too often because that could cause your premiums to skyrocket.

The Final Thoughts

These are some ways to pay for your used auto repairs, but there are many other manners in which you could raise funds. So think outside of the box and you should be fine. You'll be able to come up with the cash for repairs and won't have to worry about your car being broken down for long.

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