Best Car Repair Loans Comparison

Q: Where can I get a loan for car repair?

You can apply for a car repair loan with banks, non-bank lenders, specialist car repair lenders and through a personal loan broker. You can apply over the phone, online, or in person.Online non-bank lenders often offer faster approval on personal loans than traditional lenders. If you have issues in your credit history, it could be worth looking at specialist providers who offer bad credit personal loans.

Q: What is a car repair loan?

Vehicle repair loans are personal loans between $2,000 and $100,000, which are usually offered for a period of between one and seven years. These loans can be secured by an asset, but often it’s an unsecured personal loan. Depending on the value of any available assets (such as your car), you may be able to qualify for either option. A secured personal loan will generally come with a lower interest rate.

Looking for a car repair loan to get you back on the road?

There’s no good time for a car to break down. But probably the worst time is when you don’t have the money available to cover the repair costs.

A car repair loan could come in handy in that situation.

Read on and I’ll explain how car repair loans work and how to make sure you get the best deal you can. But do yourself a favour first. Check if there are any alternatives available that would mean you don’t need to take out a loan.

I’ll also explore some of the other options below too.

Car repair loans are personal loans between $1,000 and $100,000, which are usually offered for a period of between one and seven years.

These loans can be secured by an asset, but often it’s an unsecured personal loan.

Depending on the value of any assets you own (such as your car), you may be able to qualify for either option.

A secured personal loan will generally come with a lower interest rate.

Estimating the cost of your car repairs is crucial before applying. Be sure to speak to a trusted, independent mechanic who can provide a detailed quote.

Where can I get a loan for car repair?

You can apply for a car repair loan with:

Banks

Non-bank lenders

Specialist car repair lenders

A personal loan broker

You can apply over the phone, online, or in person.

Online non-bank lenders often offer faster approval on personal loans than traditional lenders.

If you have issues in your credit history, it could be worth looking at specialist providers who offer bad credit personal loans.

While you might be in a hurry to get your car back on the road, it’s worth taking some time to ensure you choose the right car repair loan.

In particular, look for loans that offer:

A low interest rate

Low fees

Flexible repayments (weekly, fortnightly or monthly)

Extra repayments without fees - to help you save on interest

Early loan settlement without fees - if you want to completely repay the loan early

	Harmoney - Unsecured Personal Loan
Personal loan interest rate	5.76% p.a. - 24.03% p.a.
Comparison rate*	6.55% p.a. - 24.98% p.a.
	Plenti - Unsecured Personal Loan
Personal loan interest rate	6.57% p.a. - 24.09% p.a.
Comparison rate*	6.57% p.a. - 26.28% p.a.
	NOW Finance - Unsecured Personal Loan
Personal loan interest rate	6.75% p.a. - 26.95% p.a.
Comparison rate*	6.75% p.a. - 26.95% p.a.
	Pepper Money - Unsecured Personal Loan
Personal loan interest rate	6.75% p.a. - 26.95% p.a.
Comparison rate*	6.75% p.a. - 26.95% p.a.
	ING - Unsecured Personal Loan
Personal loan interest rate	6.89% p.a. - 18.99% p.a.
Comparison rate*	7.10% p.a. - 19.23% p.a.
	Our Money Market (OMM) - Unsecured Personal Loan
Personal loan interest rate	6.57% p.a. - 18.99% p.a.
Comparison rate*	7.19% p.a. - 21.78% p.a.
	Liberty Financial - Unsecured Personal Loan
Personal loan interest rate	7.24% p.a. - 19.99% p.a.
Comparison rate*	7.24% p.a. - 21.49% p.a.
	Moneyplace - Unsecured Personal Loan
Personal loan interest rate	7.24% p.a. - 19.99% p.a.
Comparison rate*	7.24% p.a. - 21.49% p.a.
	MoneyMe - Unsecured Personal Loan
Personal loan interest rate	6.74% p.a. - 24.49% p.a.
Comparison rate*	8.13% p.a. - 25.87% p.a.
	ANZ - Unsecured Personal Loan
Personal loan interest rate	7.49% p.a. - 19.99% p.a.
Comparison rate*	8.18% p.a. - 20.58% p.a.
	G&C Mutual Bank - Unsecured Personal Loan
Personal loan interest rate	7.99% p.a. - 16.99% p.a.
Comparison rate*	8.20% p.a. - 17.22% p.a.
	Society One - Unsecured Personal Loan
Personal loan interest rate	8.20% p.a. - 24.89% p.a.
Comparison rate*	8.27% p.a. - 25.64% p.a.
	Great Southern Bank - Unsecured Personal Loan
Personal loan interest rate	7.99% p.a. - 19.99% p.a.
Comparison rate*	8.31 % p.a. - 20.35% p.a.
	Bank of Melbourne - Unsecured Personal Loan
Personal loan interest rate	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
	BankSA - Unsecured Personal Loan
Personal loan interest rate	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
	St.George Bank - Unsecured Personal Loan
Personal loan interest rate	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
	Westpac - Unsecured Personal Loan
Personal loan interest rate	7.99% p.a. - 20.49% p.a.
Comparison rate*	9.18% p.a. - 21.61% p.a.
	Wisr - Unsecured Personal Loan
Personal loan interest rate	8.49% p.a. - 23.29% p.a.
Comparison rate*	9.33% p.a. - 24.05% p.a.
	NAB - Unsecured Personal Loan
Personal loan interest rate	8.49% p.a. - 20.49% p.a.
Comparison rate*	9.54% p.a. - 21.49% p.a.
	Commbank - Unsecured Personal Loan
Personal loan interest rate	8.50% p.a. - 20.50% p.a. (fixed); 8.50% p.a. - 20.50% p.a. (variable)
Comparison rate*	9.89% p.a. - 21.79% p.a. (fixed); 9.89% p.a. - 21.79% p.a. (variable)
	Latitude Financial - Unsecured Personal Loan
Personal loan interest rate	9.49% p.a. - 29.99% p.a.
Comparison rate*	10.93% p.a. - 31.83% p.a
	Fair Go Finance - Unsecured Personal Loan
Personal loan interest rate	21.90% p.a. - 25.90%
Comparison rate*	28.71% p.a. - 33.80% p.a.
	Jacaranda Finance - Unsecured Personal Loan
Personal loan interest rate	17.95% p.a. - 27.95% p.a.
Comparison rate*	32.40% p.a. - 42.80% p.a.

	Personal loan interest rate	Comparison rate*
Harmoney - Unsecured Personal Loan	5.76% p.a. - 24.03% p.a.	6.55% p.a. - 24.98% p.a.
Plenti - Unsecured Personal Loan	6.57% p.a. - 24.09% p.a.	6.57% p.a. - 26.28% p.a.
NOW Finance - Unsecured Personal Loan	6.75% p.a. - 26.95% p.a.	6.75% p.a. - 26.95% p.a.
Pepper Money - Unsecured Personal Loan	6.75% p.a. - 26.95% p.a.	6.75% p.a. - 26.95% p.a.
ING - Unsecured Personal Loan	6.89% p.a. - 18.99% p.a.	7.10% p.a. - 19.23% p.a.
Our Money Market (OMM) - Unsecured Personal Loan	6.57% p.a. - 18.99% p.a.	7.19% p.a. - 21.78% p.a.
Liberty Financial - Unsecured Personal Loan	7.24% p.a. - 19.99% p.a.	7.24% p.a. - 21.49% p.a.
Moneyplace - Unsecured Personal Loan	7.24% p.a. - 19.99% p.a.	7.24% p.a. - 21.49% p.a.
MoneyMe - Unsecured Personal Loan	6.74% p.a. - 24.49% p.a.	8.13% p.a. - 25.87% p.a.
ANZ - Unsecured Personal Loan	7.49% p.a. - 19.99% p.a.	8.18% p.a. - 20.58% p.a.
G&C Mutual Bank - Unsecured Personal Loan	7.99% p.a. - 16.99% p.a.	8.20% p.a. - 17.22% p.a.
Society One - Unsecured Personal Loan	8.20% p.a. - 24.89% p.a.	8.27% p.a. - 25.64% p.a.
Great Southern Bank - Unsecured Personal Loan	7.99% p.a. - 19.99% p.a.	8.31 % p.a. - 20.35% p.a.
Bank of Melbourne - Unsecured Personal Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.
BankSA - Unsecured Personal Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.
St.George Bank - Unsecured Personal Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.
Westpac - Unsecured Personal Loan	7.99% p.a. - 20.49% p.a.	9.18% p.a. - 21.61% p.a.
Wisr - Unsecured Personal Loan	8.49% p.a. - 23.29% p.a.	9.33% p.a. - 24.05% p.a.
NAB - Unsecured Personal Loan	8.49% p.a. - 20.49% p.a.	9.54% p.a. - 21.49% p.a.
Commbank - Unsecured Personal Loan	8.50% p.a. - 20.50% p.a. (fixed); 8.50% p.a. - 20.50% p.a. (variable)	9.89% p.a. - 21.79% p.a. (fixed); 9.89% p.a. - 21.79% p.a. (variable)
Latitude Financial - Unsecured Personal Loan	9.49% p.a. - 29.99% p.a.	10.93% p.a. - 31.83% p.a
Fair Go Finance - Unsecured Personal Loan	21.90% p.a. - 25.90%	28.71% p.a. - 33.80% p.a.
Jacaranda Finance - Unsecured Personal Loan	17.95% p.a. - 27.95% p.a.	32.40% p.a. - 42.80% p.a.

Personal loan interest rate comparison based on products analysed by Money advertising a high and low interest rate range. Rates are current as of 2 January 2023. Check with the provider for full current loan details, including rates, fees, eligibility and terms and conditions. While this is an extensive list of personal loans available in Australia, not all loans in the market are shown. This list is for reference only and does not reflect the selection of loans you may see if you get a personalised quote through Money. *The comparison rate is based on an unsecured fixed rate personal loan of $30,000 over 5 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.

Am I eligible for a car repair loan?

Generally you can apply for a vehicle repair loan in Australia if you are:

Over the age of 18; and

An Australian citizen or permanent resident; and

Employed or have a regular source of income

Even if you meet the basic eligibility for a vehicle repair loan, the lender will assess your application based on your financial situation.

They do this to ensure the loan is suitable and you can comfortably afford the repayments.

They'll also need to work out the interest rate you will be charged (which could well be different to the lowest advertised rate you'll see).

Lenders will look at:

Your credit score (you can check your own credit score for free so you know where you stand)

Your income

Your employment status (full-time, self-employed etc.)

Assets you own

Your regular expenses

Your other debts (e.g credit cards)

How many dependents you have

Of course you can use a personal loan calculator to estimate your repayments and whether you can afford them before applying.

The application process for a car repair loan usually involves these steps:

1

Compare your loan options

2

Check you’re eligible to apply with your chosen lender

3

Submit a car repair loan application

4

Submit any requested documents to prove you meet the approval criteria

5

If you’re approved, sign a loan contract and agree to the terms of the loan

6

The loan funds will be transferred to your nominated bank account

If you are self-employed, you’ll need to provide different documentation to lenders when applying for a vehicle repair loan.

In general, you will need to provide tax returns in place of employee payslips.

Can I get a car repair loan if I have bad credit?

It may still be possible to get a car repair loan if you have bad credit.

There are specialist lenders in Australia who offer loans tailored to people with a low credit score.

The thing to bear in mind is that the interest rates on bad credit loans can be quite high, which could put you under more financial pressure.

Alternatives to getting a car repair loan

Before you apply for a car repair loan, are there any alternatives you have available?

Here are some options you could explore.

First, double check if the car repairs could be covered by the manufacturer or dealer warranty.

And check if the repairs could fall under your car insurance. Some damage caused by an accident or weather events like flooding or hail damage may be covered by comprehensive car insurance.

If neither of those options is available, check if you could be eligible for a no-interest loan. These can be used to cover essential costs (including car repairs) up to $2,000.

If you’re struggling financially, think carefully about whether taking out a loan right now is a good idea. If you need support, you can get it from the National Debt Helpline.