Car repair loans: Affordable financing for expensive repairs

If you’re one of the many people in the U.S. who own a car or use one regularly, chances are you’ve probably experienced the stress of having your car break down or the check engine light turn on.

Cars are an essential part of everyday life for many people, but keeping them working and repairing them when they break down can be expensive, and you may not have the funds ready to pay for repairs or even a diagnostic, which can cost as much as $400.

There are other ways to help pay for car repairs to get your vehicle back on the road. We’ll break down the cost of common car repairs and how you can finance them.

Average cost of car repairs

When you see your car’s check engine light turn on, it’s normal to feel a sense of dread. The good news is that the light isn’t necessarily a death knell. Many of the reasons the check engine light comes on can be routine or inexpensive fixes, like a loose or faulty gas cap.

Car repair costs can vary significantly, even for the same issue, depending on where you get your quote for parts and labor. That’s why it’s important to shop around so you can find the shop with the lowest labor charges, keeping your repair bill down.

We’ll cover the typical cost of some repairs so you’ll have an idea of what to expect based on the problem your car is having.

Routine car maintenance costs

Major repairs can be expensive, but one key way to avoid those expensive repairs is to make sure you take care of your car’s routine maintenance needs. Regular preventative maintenance can keep your car running and limit the chances of larger problems down the road.

These are some important pieces of maintenance to do and estimates of how much they cost.

Auto-part replacement costs

Different parts of your car wear down and need replacement over time. Smaller components like windshield wipers or air filters are relatively cheap and easy to replace, while larger components, like brake pads, may cost more.

Common car body repair costs

You’ll likely only need to do auto body repairs if you get into an accident, either on the road or while parked. Even a small fender bender can be costly, but getting the repairs done is important to avoid larger issues down the line.

These are some common body repair jobs and how much they cost.

Why is fixing a car so expensive?

It’s no secret that repairing cars can be expensive. Even what seems like a minor issue can cost hundreds or thousands of dollars.

The cost of repairs depends on three factors:

• Labor: Every body shop and garage establishes its own hourly fee for labor. Some major repairs can take days or weeks, driving up the cost.
• Parts: Older cars may require body shops and garages to search for the appropriate parts. The rarity of certain vehicles (and the resulting difficulty in finding their parts) also impacts the cost. In addition, new parts are often pricier.
• Tools: Depending on what system or parts require repair, mechanics may need access to specialized parts or computer systems, which can also increase the cost.

Should you DIY your car repairs?

If your car has an issue and you’re a handy person, it can be tempting to try to DIY the repair. After all, labor can easily cost hundreds of dollars if you bring your car in, so why not try to do it yourself to save money?

There are some tasks that you can do on your own, such as changing a tire or touching up paint, but larger repairs should be handled by an expert. DIY repairs on important components, such as brakes, can be dangerous if done improperly.

Unless you’re a car mechanic yourself, it’s best to seek professional help when replacing parts or repairing dents.

Financing options for auto repair costs

If you’re facing an expensive car repair, you may not have the cash available to pay for it. These are some of the most common ways to finance your auto repair costs. Be sure to consider all of your options to make the best choice for your unique situation.

Personal loan

Personal loans are flexible loans you can use for many purposes, including financing car repairs. To qualify for a loan, you’ll need to fill out an application and provide proof of things such as your identification and income.

Your loan offer will vary based on factors like your credit score and debt-to-income ratio. People who have higher credit scores and lower DTI ratios generally receive better loan terms.

Keep in mind that most personal loans are not secured, which means you’re not putting your car at risk should you default. However, defaulting will significantly damage your credit and could open you up to legal action from the lender.

In-store financing

Some autobody shops or mechanics offer in-store financing. Sometimes, these are loans or payment plans offered by the shop, and in other cases, they’re personal loans or store credit cards provided by a lending partner of the shop.

Deals can vary widely depending on where you’re getting your car’s work done. It’s important to examine the details of the financing deal, such as fees, interest rates, APRs, and payment terms, to see if in-store financing is right for you.

0% APR credit card

Some credit card companies offer promotional financing when you sign up for a new card. So long as you make your minimum payment each month, the card has 0% APR for the length of the promotional period, which often lasts between 6 and 21 months.

Once the promotion ends, you’ll pay the normal interest rate for the card, which is usually quite high compared to other options like personal loans.

This can be a good option for people who have strong credit and who only need to borrow a small amount to finance their repairs. You just have to be sure to pay the balance off before the promotional period ends.

Emergency fund

An emergency fund is some money that you’ve set aside to pay for emergency expenses. A car repair is an emergency, especially if you need your vehicle to get to work. Using money from your emergency fund will let you avoid taking on more debt.

Keep in mind that if you do tap your emergency fund to pay for car repairs, you need to replenish the emergency fund over time. If you don’t, you might find yourself unable to handle future unexpected expenses.

FAQ

If you’re having car trouble, keep these common questions about the cost of car repairs in mind.

What is the most expensive repair to fix on a car?

Engine replacement is the most expensive car repair, potentially costing you up to $10,000. Replacing a car engine can even be pricier than many accident-related repairs.

Are car parts more expensive now?

Yes, the cost of car repairs tends to go up over time, both due to the cost of labor and the cost of parts. According to data from the Federal Reserve, the cost of car parts has risen by more than 27% between November 2020 and September 2025.

Can cold weather kill a car battery?

Yes, cold weather can cause some damage to your car’s battery. The cold can reduce a battery’s capacity by as much as 50% while also making your car need 30% more power to start. That can leave your battery without sufficient charge to start your car.

At what point is it too expensive to repair a car?

Many people say that once a car’s repair cost equals or exceeds the car’s current value, you should instead look for a new vehicle. Consider the car’s age and mileage, too, when deciding whether it’s worth fixing up if it breaks down in the near future.

The bottom line: Car repair loans help car owners manage repair expenses

It’s no secret that car repairs can be expensive. Ideally, you have an emergency fund to help cover these unexpected expenses, but for many people, that’s not the case. If you need help covering car repairs, you can consider multiple financing options.

If you’d like to see what you qualify for from Rocket Loans℠, you can start an application today.