Unfortunately, we don’t get to choose when our car is going to break, and in many cases, it seems to happen at the worst time.  

With daily life becoming more and more expensive, large unforeseen bills can have a major impact on our finances. But that’s where car repair loans come in. 

Loans for car repairs can take the pressure off an expensive bill and help you manage your finances without stress. Keep reading to learn more about auto repair loans, how they work, and what you need to know before signing up for one. 

What is a car repair loan? 

A car repair loan is a specific form of lending that helps pay for car maintenance or repair bills. These loans split the costs into multiple payments over a series of months, allowing you to minimise the impacts of a big surprise cost. 

Usually, the amount is paid directly to the garage doing the work, and the car owner repays the loan company in monthly payments until it is complete. 

Learn more about how it works here. 

Do I pay interest on car repair loans? 

Banks and credit unions typically charge interest on money lent, but car repair loan companies like Bumper do not.  

Bumper makes money by charging the garage a small service charge instead. But don’t worry. This cost will never be passed on to you through inflated rates. We’re here to make the experience easier, not more stressful.

What fees are there for securing a car repair loan? 

As the borrower, none! There shouldn’t be any fees to the customer to secure a car repair loan. 

Here at Bumper, we charge the garage a small service charge, and that’s it. Assuming you make all the repayments on time as agreed prior to arranging credit, there are no fees to be paid with our car repair finance. 

How to get a car repair loan  

At Bumper, it couldn't be easier. Our website will guide you through the steps one by one. To get started, visit our find a partner page.  

The process for car repair finance is simple: 

1. Enter your reg & postcode to search for a trusted local service partner.  
2. Apply for your Credit Limit up to £5,000. We don't need to know how much your bill will be. 
3. Get pre-approved instantly and get your unique Bumper Code.  
4. Book an appointment with your selected service partner. When it's time to pay, give them your code. 

What information do I need to apply for a car repair loan? 

If you need a loan to get your car fixed, you’ll need a few personal details. 

On our website, you will be asked to provide information about your car and location. From there, we’ll present a suitable selection of local garages.  

We also do a ‘soft credit check’ in order to guarantee eligibility for a car repair loan, and this will require information such as your full name, address, date of birth, and any current credit lines you have.   

Do I have to provide security for a car repair loan?  

No, unlike many bank loans, you don’t need to provide collateral for a car repair loan.   

This means you don’t need to own your own home or car outright to get approved for a car repair loan, making the process much easier.  

Can I use a credit card for car repairs? 

An option lots of people use for large purchases is a credit card. This allows you to cover the cost of large bills without needing to pay upfront, but they do have their downsides.

Whilst many credit card companies offer zero interest rates on a fixed term, say 18 months, these are usually offers rather than permanent schemes, meaning it's very important to check and double-check what interest you'll have to pay.   

After the first month, many credit card lenders charge in the region of 20% APR, with this compounding if payments are missed. If your credit score isn't perfect, this rate can skyrocket to 40 or 60%.  

Bumper allows guaranteed 0%-interest repayments over a timescale that is established before the money is lent, meaning you won't get any surprises when your statement arrives next month.  

Can I get a car repair loan quickly? 

Another benefit of Bumper's service is the speed of approval. In many cases, car repair loans can be taken out in as little as one day, enabling your garage of choice to get to work straight away.  

If you have a poor credit score or need a large bill covering, it may take an extra day or two. This is likely to be faster still than taking out a new credit card or applying for a bank loan.  

Buy Now Pay Later Alternatives 

As well as Bumper or using a credit card, there are a few other ways to spread the cost of car repairs, each with its own downsides and benefits.  

1. PayPal or Klarna Credit 

Paypal has offered a buy now pay later option for a while, for some customers can give 4 months zero interest loans.   

Whilst its platform is widely used online and in e-commerce purchases, in our experience, there aren’t many garages that will accept a PayPal scheme. 

Another downside is that PayPal’s standard credit limit is £1200, which is often not enough for more serious repairs.  

Klarna is a payment tool that is popular in retail stores and is available in a few garages, but this is limited by the very same points mentioned above, including a restrictive payment plan and limited availability.  

2. Local Garage Buy Now Pay Later 

A few garage chains in the UK offer a buy now, pay later service within their group, which allows customers to spread the cost.  

Whilst these can be a great help, we’ve found not all branches offer the service, and as such, you need to be sure your local garage offers the service and can accommodate your vehicle in your preferred time period.   

They also tend to be less flexible, requiring a fixed rate for deposits, repayment times, and amounts. This can be difficult to manage if your car repair bill is significant.  

Will a car repair loan impact my credit score?  

When applying for a car repair loan, we will do a soft credit check, which will not affect your credit score. Once your loan is approved, paying back the loan in time with the schedule agreed will actually improve your credit score.   

Read more about how car finance affects your credit score here. 

Can you get a repair loan with bad credit? 

All loan providers will check your credit score to determine if you qualify for particular products. Bumper's car repair loans can be a good option for those with low credit scores. However, approval will depend on the individual's circumstances. 

Loan for car repairs - The bottom line  

Car and auto repair loans can take the strain off a stressful situation. So, if you need urgent car repairs, make sure you consider loans before deciding on your final payment option. 

How Bumper can help 

If you’re worried about car repairs and think you might need a car repair loan, let Bumper take care of it. Split the cost of car repairs into easy monthly repayments, completely interest-free. Choose from 1000s of trusted garages and dealerships. 

Author - Joseph Law

Joseph has been writing about cars for over seven years and writing for Bumper for over two, blending his passion for automobiles with a talent for storytelling.

Joseph has written about engineering and cars for Autozilla, Komaspec, and several engineering manufacturers. When he's not writing or tinkering with one of his five cars, Joseph dreams of owning an Alfa Romeo 33 Stradale.