Financed Car Needs New Engine
What to Do
If your financed car needs a new engine, it can be a stressful and expensive situation. Here are some steps to take:
- Contact your lender. Let your lender know what’s going on and ask about your options. You may be able to get a loan modification or deferment.
- Get quotes from repair shops. Once you know how much the repairs will cost, you can start to make a plan for how to pay for them.
- Consider your options. You may be able to pay for the repairs out of pocket, finance them, or sell the car. The best option for you will depend on your financial situation and the value of the car.
Paying for Repairs
If you decide to pay for the repairs, you have a few options:
- Pay for the repairs out of pocket. This is the most straightforward option, but it can be expensive. If you don’t have the money to pay for the repairs upfront, you may be able to get a loan from a bank or credit union.
- Finance the repairs. Some repair shops offer financing options. This can be a good option if you don’t have the money to pay for the repairs upfront. However, it’s important to compare interest rates and terms before you agree to a financing plan.
- Sell the car. If the cost of repairs is more than the value of the car, you may be able to sell the car to a salvage yard or to a private buyer. You can use the money from the sale to pay off the loan and buy a new car.
Making a Decision
The decision of what to do with a financed car that needs a new engine is a difficult one. There is no one-size-fits-all answer. The best option for you will depend on your financial situation, the value of the car, and your personal circumstances.
If you’re struggling to make a decision, it’s a good idea to talk to a financial advisor or a credit counselor. They can help you assess your options and make the best decision for your situation.
