Written by A car repair loan is a short-term quick cash loan up to $5,000 that can help cover unexpected vehicle expenses. With a straightforward application process and fast funding, it can be a practical solution when you have urgent costs but money is tight. It allows you to pay your repair bills upfront and then repay the loan over a period of up to two years, breaking the cost down into more manageable instalments.
The features and benefits of car repair loans
Rapid approval and fund transfer
You can receive an instant car loan outcome in 60 seconds and have your money transferred to you in as little as one hour.
Borrow up to $5,000
Any amount from $2,050 up to a maximum of $5,000 is available for your loan, making them suitable for a variety of repairs.
Loan terms up to two years
As part of your loan, you can choose to make your repayments over a period as short as 16 days all the way up to two years.
Flexible usage
Whether you’re looking for cash to pay for big or small repairs, we can help you get approved no matter what your car needs.
No security needed
Savvy matches you to your lender instantly, who provide instant outcomes, and same day approval is achievable for borrowers.
Fixed repayments
With capped, fixed fees built into your loan and no interest, your repayments will stay the same and allow you to budget around them.
Diverse acceptable income streams
Aside from your salary, we accept a range of other income sources, including disability, age and veterans’ pensions, parenting and carer payments.
Self-employed
You don’t have to be receiving payslips to qualify, either, as we help self-employed workers get approved for loans for their car repairs too.
Why apply for a small loan with Savvy?
No matter the time of day or week, you can complete your small loan application with us online.
You can receive an outcome in 60 seconds and, if successful, have your money sent in just one hour.
We're partnered with reputable Australian lenders to bring you greater peace of mind when applying for your small loan.
Cash loan eligibility and information
What repairs can you cover?
Our loans can assist in covering some of the following problems you may have with your car:
- Body repairs
- Engine
- Gearbox or Transmission
- Differential
- Turbo or supercharger
- Cylinder Head & Gasket
- Radiator
- Cooling system
- Air Conditioning
- Fuel systems
- Brakes & ABS brake system
- Electrical repairs
- Clutch
- Steering
- Suspension
- Power windows
- Computers
- Transmission Computer
- Driveshaft & universals
- Ignition system
The above list is quite a comprehensive one which would cover most parts however our cash loans can cover and kind of damage. You could also use some of you approved funds to do some modifications which may include a:
- Drivetrain
- Exhaust system
- Cold air intake
- Performance chip
- Sports suspension
- Sport brakes
- Turbocharger
- Body Kit
Or you could purchase some additional accessories such as:
- Roof racks
- Tonneau covers
- Grille guards
- Mirrors
- Snorkel
Our loans can also be used for other maintenance requirements as well, not just in emergency cases, but also if you need to renew your car registration, change your tyres or complete your regular service. Plus if it comes to a worst case scenario and the mechanic doesn't think it's worth fixing your vehicle, Savvy specialises in car loans and can even help source you new car.
How much will my car repair loan cost?
The cost of your car repair loan depends on two main factors: the loan amount and the repayment term.
In Australia, small cash loans up to $2,000 come with a 20% establishment fee and 4% monthly fee, with terms of up to a year. Loans between $2,001 and $5,000 have a maximum establishment fee of $400 and a maximum APR of 48%, and can be paid off over up to two years. The longer you take to pay off your loan, the more you will pay in fees or interest. However, this will allow you to lower the amount you pay in each instalment, whether you opt for weekly, fortnightly or monthly repayments.
For example, say your car breaks down and you are saddled with a $2,500 bill for the repairs. You take out a cash loan through Savvy to cover the cost, spreading the repayments out over 24 months. This is how the costs would work out:
Loan amount | Loan term | Establishment fee | Interest rate | Monthly repayment | Total cost |
$2,500 | 24 months | $400 | 48% p.a. | $191 | $4,565 |
Your questions about car repair loans answered
No – the lenders on our panel will transfer the funds directly into your bank account. You can from there pay the mechanic either through EFT or on your bank card. The loan comes into your account like any normal cash deposit.
Absolutely – and many of our customers do. You could apply for a $5,000 cash loan but only use $3,500 of it for the repair, for instance. The remaining funds can be used to pay your bills or anything else. Just remember that small loans come with high interest rates, so you ideally don't want to borrow more money than you need as it will cost you in the long run.
Yes – this is also quite a popular thing to do. Many customers are looking to consolidate and roll over existing debts into one new facility. You can definitely use the loan to pay the mechanic, and pay out any existing pending debts that you have. If you have other cash loans, you will need to contact the lender and ask them for a discharge letter. All of the payment options will be listed on your letter; most lenders offer BPAY or EFT options to close off an account.
Yes – Savvy is a loan marketplace, meaning that we have access to a number of different providers. Most of the lenders on our panel offering small personal loans accept customers that have bad credit.
If your car repairs exceed $5,000, you may want to consider applying for a personal loan. Personal loans generally allow you to borrow larger amounts, giving you the financial flexibility to cover higher repair costs while offering longer repayment terms, though they typically have more stringent eligibility criteria.
We can absolutely assist with this – if there is no bad credit on your file, some lenders may be prepared to go up to $50,000 on an unsecured loan, if your income and profile allow for it.
No – all of our applications are 100% online with instant outcomes. Loan documents are signed electronically & any supporting documents are uploaded online via the lenders' website.
Yes – casual employees do fit within many of our lenders guidelines.
Yes. Cash loans are flexible and can be used for a wide range of expenses, not just car repairs. This means you could also use the funds to renew your car registration, buy accessories or add safety features to your vehicles – or to cover other urgent costs you might have such as dental treatment or an emergency vet bill.
No. Car repair loans are typically unsecured, meaning you don’t have to use your car or any other asset as collateral. This gives you flexibility without the risk of losing your vehicle if you can’t meet repayments.
If you need to pay for car repairs or registration and don’t have enough savings to hand, you may be eligible for a loan through the No Interest Loans scheme (NILs). This scheme provides up to $2,000 to eligible applicants to cover the cost of essential goods and services, including car repairs and registration, and unlike other forms of borrowing it is entirely interest free.
Small loans to suit your circumstances
Cash loan cost table
| Small (SACC) loans | Medium (MACC) loans | |
|---|---|---|
| Minimum loan amount | $100 | $2,001 |
| Maximum loan amount | $2,000 | $5,000 |
| Minimum loan term | 16 days | 16 days |
| Maximum loan term | 12 months | 24 months |
| Repayment schedule | Weekly, fortnightly or monthly | Weekly, fortnightly or monthly |
| Establishment fee | Up to 20% of your loan amount | Up to $400 |
| Interest | N/A | Up to 48.00% p.a. |
| Monthly fee | Up to 4% of your loan amount | Included in the 48.00% p.a. maximum |
| Example loan | $1,500 loan over six months repaid fortnightly
Costs: $1,500 (loan amount) + $300 (establishment fee) + $360 (4% fees over six months) Total cost: $2,160, repayable in instalments of $167 per fortnight | $3,000 loan over 12 months repaid fortnightly
Costs: $3,000 (loan amount) + $400 (establishment fee) + $912 (total interest over 12 months) Total costs: $4,312, repayable in instalments of $166 per fortnight |
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. 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.
