Published 16 March 2026. Figures and market conditions described here were current at that time and may have changed since.
Car ownership could make life very convenient, but it also comes with occasional surprises.
According to the Australian Automobile Association, the average driver spends more than $1,500 a year keeping their vehicle running. When something major breaks down, that number could climb quickly.
A sudden repair bill could feel overwhelming, especially if it arrives at the wrong time financially. The good news is there are several ways to cover the cost and get back on the road without derailing your finances.
Here are some options worth considering if you’re faced with an unexpected repair.
Use an emergency fund if you have one
If you’ve built up an emergency fund, this is exactly the type of situation it’s designed for. Car repairs are rarely predictable, and using savings could help you avoid paying interest on borrowed money.
Even a modest buffer could make a difference. Covering part of the repair cost with savings and financing the rest may reduce how much you need to borrow.
If you do dip into your emergency fund, it’s a good idea to plan how you’ll rebuild it over the coming months.
Consider a personal loan
For larger repairs, a personal loan could provide a structured way to spread the cost over time.
Personal loans generally offer fixed repayments, which could make budgeting easier. Interest rates and fees vary between lenders, so it’s worth comparing options before committing.
The key is to ensure the repayments fit comfortably within your budget so the loan doesn’t create additional financial pressure.
Use a credit card for smaller repairs
If the repair bill is relatively small, a credit card may be a convenient option.
Some cards offer complimentary on purchases, which could give you time to pay off the balance without additional cost. However, if the balance isn’t cleared within that period, interest charges could add up quickly.
Credit cards tend to work as the right option for smaller repair bills that you’re confident you could repay in the near term.
Explore payment plans with the repairer
Not everyone realises that some mechanics and repair shops offer payment plans.
Rather than paying the full amount upfront, you may be able to spread the cost over several weeks or months. This could be particularly helpful if the repair is urgent and you need your car back quickly.
Before agreeing to any plan, make sure you understand the terms and whether any fees or interest apply.
Compare specialised car repair finance
Some lenders offer finance products designed specifically for vehicle expenses, including repairs.
These loans may be structured to cover mechanical work, parts or servicing costs, allowing you to get the work completed immediately while repaying the loan over time.
As with any loan, it’s important to compare interest rates, fees and repayment terms to ensure the product suits your financial situation.
If you’re considering financing a repair, speaking with a finance broker could help you compare options.
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