It’s safe to say that most Aussies have run into costly issues with their car at least once in their life. Nearly 30% of cash loan enquiries through Savvy are for “vehicle expenses”. When it’s an emergency and you have a steep bill sitting in front of you, taking out a quick, short-term cash loan can allow you to pay it off at a more manageable speed when money is tight.
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
Car repair loans can also be used for other maintenance requirements as well, not just in emergency cases, such as 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 you source your new car.
How much will my car repair loan cost?
The two factors that determine the cost of your car repair loan are the size of the loan and how long you take to repay it. Here’s the breakdown of the allowable fees on small loans in Australia, as well as the available term lengths:
| Small loans (≤$2,000) | Medium loans (>$2,000, ≤$5,000) | |
|---|---|---|
| Establishment fee | Up to 20% of loan amount | Up to $400 |
| Monthly charge | Up to 4% of loan amount | Up to 48.00% p.a. interest |
| Minimum term | 16 days | 16 days |
| Maximum term | 12 months | 24 months |
How much do car repairs cost?
Of course, the amount you need will likely come down to the cost of your car repairs. We’ve broken down the average costs of some of the most common car repairs so you can see how much you might expect to pay for them in Australia:
| Car part | Cost |
|---|---|
| Regular service | $200 – $450 |
| Major service | $500 – $1,200 |
| Clutch replacement | $800 – $2,500 |
| Gearbox | $3,000 – $8,000 |
| New tyres | $700 – $1,500 |
| Brakes (pads & rotors) | $1,200 – $2,400 |
| Engine replacement | $3,000 – $12,000 |
Of course, quotes can differ significantly between repairers, which is why you should always get multiple quotes before repairing your car. The cost of your repairs will also vary based on the make, model and size of your car. Larger, more premium models will generally cost more than smaller budget models, for instance.
If you’re considering whether to take out a loan for your car repairs based on the cost, it’s especially important to think about your current employment situation. If your car is necessary for your job, covering the cost with a loan could help you stay employed, therefore earning the money you need to pay off your loan sooner.
How to apply for a car repair loan with Savvy
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Fill out our online form
Share details of your financial situation and how much you want to borrow.
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Get an instant outcome
Our lending partners will automatically check your info for a match.
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Have your application assessed
If you meet the criteria of one of our lenders, they’ll formally assess your profile.
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Receive your funds
If approved, all you have to do is sign off and have the funds paid to you.
Why apply for a small loan with Savvy?
Cash loan eligibility and information
The eligibility criteria you’ll need to meet to qualify for a car repair loan can differ between lenders. However, the general points you’ll have to meet are:
- 18 years of age or older
- Australian citizen, permanent resident or accepted visa holder
- Earn a stable income above your lender’s minimum threshold
- Hold an Australian bank account
- Have a valid phone number and email address
In terms of the information you’ll need to provide, this will largely come down to your personal ID (such as a driver’s licence) and 90 days of bank statements. If you receive funds from Centrelink, you’ll be required to also provide a Centrelink income statement.
In certain situations, your lender may ask for personal references, such as a family member or work colleague or manager. These references usually won’t be contacted unless your lender can’t get hold of you during your term.
Can I use Afterpay to pay for car repairs?
Yes, there are plenty of repairers who accept Afterpay and other buy now pay later (BNPL) services to cover the cost of car repairs. This is an alternative to taking out a small loan, as it breaks down the cost into four to eight even instalments. If you make these payments on time, you won’t have to pay interest in most cases, though you might need to pay a fee for the service.
You can see in the table below which providers are partnered with BNPL providers and any limits that apply:
| Repairer | Afterpay | Zip Pay | Other |
|---|---|---|---|
| mycar | Yes ($600 minimum) | Yes (up to $5,000, up to 6 months interest-free) | N/A |
| Auto Masters | Yes ($300 to $3,000 over 6 weeks) | Yes (up to $8,000, up to 12 months interest-free) | humm (up to $30,000 over up to 72 months, but must have a permanent job of 20+ hours/week) |
| Midas | Yes (up to $3,000) | Yes (up to $5,000) | N/A |
| Bob Jane | Yes | Yes ($500 minimum) | N/A |
| Bridgestone | Yes | Yes (Up to $1,500 with Zip Pay, up to $10,000 with Zip Money) | Latitude (minimum $250 for 6 months interest-free, minimum $500 for 12 months interest-free) |
| Tyrepower | Yes | Yes (up to $5,000, up to 10 months interest-free) | N/A |
| JAX Tyres | Yes (up to $2,000) | Yes (up to $5,000) | Latitude (minimum $300 for 6 months interest-free, minimum $500 for 12 months interest-free) |
| Ultra Tune | Yes | N/A | N/A |