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Best Auto Repair Loans February 2024

A breakdown of your car can put you in a tough spot, as repair costs always seem to come at the worst time. If you need a way to manage unexpected repair costs, compare the best car repair loans available, getting you the best rates and terms tailored to your specific needs.

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Key Facts

  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%
  • Max Loan Amount: $100K

Pros

pros iconGreat for Comparing Lenders

pros icon Fast and Easy

pros iconSecure 256-bit encryption

Cons

cons iconFees Vary

cons iconOther Variable Info

cons iconTerms are Limited

Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 4.60% – 35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties..

Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lenders will conduct a hard credit pull when you submit your application. Hard credit pulls will have an impact on your credit score. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680.

Bonus disclosure:
“All bonus payments are by gift card.”

*Not all available financial products and offers from all financial institutions have been reviewed by this website

  • check mark Fixed APR: 5.20-35.99%
  • check mark Loan Term: 12-84 months
  • check mark Min Credit Score: 600
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Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

“SoFi” is a registered trademark of Social Finance, Inc. SoFi is not affiliated with colleges and universities listed on SoFi.com. Colleges and universities listed on SoFi.com do not endorse, promote or recommend SoFi loan products.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2022 Social Finance, Inc. All rights reserved.”

Fixed rates from 3.99% APR to 9.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 01/16/24 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • check mark APR: 8.99-25.81%
  • check mark Loan Term: 24-84 months
  • check mark Min Credit Score: 680
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Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will suit their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also assess brands we are not engaged with).

These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewers’ findings and subjective experience, and product popularity, impact the placement and position of the brands within the comparison table. In the event that we assign ratings or scoring, they are based on the standing in the comparison table or according to the other formula in the event detailed explicitly by us. See our How we Rate page and Terms of Use for information.

The reviews, ratings, and scoring are provided “as is” without guarantees or warranties regarding the information contained on our website, which shall not be considered as endorsement. We do our best to keep the information up-to-date. However, an offer’s terms might change at any time. We do not compare or include all service providers, brands, and offers available in the market. Loan Payment Example: A $35,000 personal loan financed at 4.99% APR would amount to 60 monthly payments of approximately $676.49 each.

  • check mark Useful mobile app to manage your loan
  • check mark Accepts co-signer and joint applications
  • check mark Wide range of term lengths and amounts
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Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 1.85% to 9.99% origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

Fast Funding Disclosure: *Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

  • check mark Discounts for Upgrade account owners
  • check mark No prepayment penalties
  • check mark Fast funding in 1-4 days
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Key Facts

  • Wide range of loan term lengths.
  • No prepayment penalties.
  • Enjoy additional services Axos offer.

Pros

pros iconNo prepayment penalties

pros icon1-year loan terms available

pros iconFast, 2-day funding

pros iconWide range of loan terms

Cons

cons iconHigh credit score requirements

cons iconOrigination fee

cons iconShorter loan terms

Axos Bank® offers bank products and services. All deposit accounts through Axos Bank brands are FDIC insured through Axos Bank. All deposit accounts of the same ownership and vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and vesting at Axos Bank. For more information, read our FDIC Notice. Axos Bank NMLS# 524995. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month for a total amount of $18,432.

 

  • check mark Wide range of loan term lengths
  • check mark No prepayment penalties
  • check mark Repay in 3-6 years
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Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

pros iconLightStream doesn’t charge any fees

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

LightStream is a part of Truist Bank. While most correspondence will come from LightStream, you might notice the name Truist on certain communications from us. We continue to serve customers across all 50 states, and you do not need to be an existing customer to qualify for a LightStream loan.

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and credit profile. The lowest rates require excellent credit. At least 22% of approved applicants applying for the lowest rate qualified for the lowest rate available based on data from 07/01/2022 to 09/30/2022.

Rate is quoted with an AutoPay discount. AutoPay discount is only available before loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

  • check mark APR: 7.99 - 24.49% *w/ Autopay
  • check mark Loan Term: 24 - 84* months
  • check mark Min Credit Score: 660
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Key Facts

  • Flexible repayment options
  • Great for customers with bad credit score
  • Safe and secure

Pros

pros iconEasy, fast application process

pros iconFunds are disbursed quickly

pros iconBuilds personal credit

Cons

cons iconHigh fees and interest charges

cons iconNo co-signed, joint, or secured loan option

cons iconNo rate discount for automatic payments

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • check mark Flexible repayment options
  • check mark Quick loan approval & funding
  • check mark One-step loan application process

Top Auto Repair Loan Providers

Credible

Get auto loans from top lenders

580

Min Credit Score

4.60-35.99%

APR. Fixed Rate

$600-$100K

Loan Amount

1-7 Years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

N/A

Other Fees

None

Origination Fee

None

Prepayment Fee

3 days

Funding Time

Auto Loan Refinance

Min 4.60%

APR. Fixed Rate

Pros & Cons

drop-down-btn
  • con-icon Simple, streamlined prequalification and application process
  • con-icon Live customer support (uncommon among loan marketplaces)
  • con-icon Several other loan types are available
  • con-icon No official auto purchase or refinancing loans — only personal loans
  • con-icon Not a direct lender

Auto Loan Types

drop-down-btn
  • Secured Auto Loans
  • Unsecured Auto Loans

Vehicle Types

drop-down-btn
  • Car
  • Motorcycle

660

Min Credit Score

3.99-20.49%

APR. Fixed Rate

2.99-20.49%

APR. Variable Rate

$5K-$100K

Loan Amount

24-84 months

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

48 hours

Funding Time

Pros & Cons

drop-down-btn
  • con-icon No mileage or vehicle type restrictions
  • con-icon Lightstream lends to people in all 50 states
  • con-icon Low rates for borrowers with great credit
  • con-icon Loan rates are 0.50% higher without AutoPay
  • con-icon Hard credit check to get approved
  • con-icon Minimum credit score required for approval, regardless of other qualifications

Auto Loan Types

drop-down-btn
  • Secured Auto Loans
  • Unsecured Auto Loans
  • Simple Interest Loans

Vehicle Types

drop-down-btn
  • Car
  • Motorcycle
  • Truck
  • EV
  • Snowmbile
  • Auto Repair
  • Watercraft

620

Min Credit Score

5.19-6.99%

APR. Fixed Rate

Min 5.39%

APR. Variable Rate

$500-$150K

Loan Amount

36-84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

N/A

Other Fees

None

Origination Fee

None

Prepayment Fee

24 hours

Funding Time

Auto Loan Refinance

Min 5.2%

APR. Fixed Rate

$500

Refinance Amount

Pros & Cons

drop-down-btn
  • con-icon APRs as low as 0.99% for new cars when you use PenFed’s TrueCar service
  • con-icon Lowest rates for 36-month loans among competitors
  • con-icon Loan amounts as low as $500
  • con-icon Offers free credit score check
  • con-icon Must be a U.S. citizen or permanent U.S. resident to become a member
  • con-icon Low interest rates reserved for members with excellent credit
  • con-icon Late payments may incur a 20% charge

Auto Loan Types

drop-down-btn
  • Unsecured Auto Loans
  • New Car Loan
  • Used Car Loan
  • Auto Refinance Loans

Vehicle Types

drop-down-btn
  • Car

Auto Repair Loan: Definition

Auto repair loans are similar to personal loans, which can come from various financial institutions. Traditional banks, credit unions, and even online lending platforms have them available. These types of loans are pretty specific, they are tailored to each lender to cover the costs of car repairs.

Car Repair: Key Terms to Know

In order to understand how auto repair loans work, let's get familiar with some of the most common terms you might come across:

  • Annual Percentage Rate: APR is the amount you’ll pay to borrow the money, including interest and fees, given as a yearly percentage. The higher the APR, the more you’ll owe in return for the loan.
  • Credit Score: This is a numerical representation of creditworthiness based on your credit history. Lenders often look at these to determine the interest rate they offer or simply to determine eligibility. A higher credit score is better and typically corresponds with lower interest rates.
  • Principal Amount: This is the original amount of money borrowed in a loan, the amount that the interest will be calculated on. The principal amount does not include any interest or fees.
  • Prepayment Penalty: Some lenders will charge a fee if you wish to pay off your loan earlier than the agreed term. It compensates the lenders for the interest they would have received had you carried out the planned payments.

Auto Repair Loan: How it Works

An auto repair loan works much like a personal loan. Here’s a general breakdown:

  1. Application: Begin applying with the financial institution of choice, either a bank, credit union, or online lender. You’ll likely have to provide details about the repair, income, and credit history.
  2. Approval: The lender will assess your application, check your creditworthiness, and determine the loan amount you qualify for. Your credit score is probably the most important thing in figuring out the loan terms.
  3. Loan Terms: Once approved, you’ll then be presented with loan terms. These include the interest rate, monthly payments, and the loan duration. Review these details carefully and read the small print!
  4. Funding: After agreeing to the terms, the loan amount is either deposited directly into your bank account or paid directly to the auto repair shop.
  5. Repayment: As with any other loan, you’ll be required to make monthly repayments over the agreed loan terms until the loan is fully repaid. Some lenders might be flexible with early repayment options without penalties.

Typically, the amount for loans to fix your car ranges between $500-$25,000, depending on the car and the extent of the damage. These loans are designed to be processed quickly, understanding that the borrower needs the funds to start the repair on their car. Many institutions will lend in just a day or two, but ensure you borrow only what you need and do your due diligence beforehand.

Auto Repair Loan Rates and Fees

The best auto repair loan companies offer rates between 4.60% all the way to almost 36% interest. This wide range is due to several factors:

  • Credit Score: A higher credit score can secure you a lower interest rate, with excellent credit scores receiving offers at the lower end of the range. Those with poor credit might have a tough time securing a low rate.
  • Terms: The length of your loan can also influence the rate. Shorter-term loans might have higher monthly payments but come with lower interest rates, and vice-versa.

One thing to note is that APR is commonly used, but some lenders may quote in APY (Annual Percentage Yield), which includes the effect of compounding.

Types of Auto Repair Loans

There are a few types of auto repair loans:

  1. Installment Loans: These have fixed monthly payments over a set period, typically with a fixed interest rate.
  2. Unsecured Loans: This type is the most common which means that the loans don’t require collateral but likely have higher interest rates.
  3. Secured Loans: Car repair loans can be secured as well. These require some form of collateral, usually the car itself. If you default, the lender can take the collateral as a form of repayment.
  4. Title Loans: This is a type of secured loan where the vehicle’s title is used as collateral. Watch out for higher rates and riskier terms.

Auto Repair Loans Pros and Cons

Pros Cons
Quick access to funds for urgent repairs Potential for high-interest rates
No need to use savings Risk of car repossession with secured loans
Flexible repayment terms Added debt to one's financial profile

How to Apply

  1. Choose a Lender: Research and select from various financial institutions available.
  2. Gather Documents: Lenders typically want to see proof of income, credit history, and repair estimates.
  3. Complete Application: Either online or in-person applications can be made, including the required loan amount and other personal details.
  4. Wait for Approval: Time can vary, but online lenders typically have the fastest responses.
  5. Review and Accept Terms: Always read the fine print before accepting any loan!

Conclusion

Auto repair loans can offer a helpful solution for those in need, and by understanding the various options available, you can secure the best auto repair loan available. Always remember to borrow responsibly and do your due diligence when reviewing loan terms and lenders.