We are Mercedes-Benz experts, not financial experts, but Credit Karma is, and they advise that there are numerous financing options for people who cannot afford their car repairs. We are going to discuss these financing options below. We also advise that you can apply for financing directly on our website. We work with Easypay and Bosch financing to help our customers pay for their auto repairs.
Credit Karma advises that traditional financing options are better than alternative financing options because they offer lower interest rates and longer payback periods. For example, getting a loan from your bank or credit union is considered a traditional financing option.
To secure the loan, you need excellent credit and collateral. You must also go through a loan approval process that may take as long as 30 days. This being said, if you are approved, you will have a low interest rate and, generally, as long as two years to pay back the loan.
Another form of traditional financing is a credit card or line of credit. This being said, your credit card or line of credit could have a high interest rate that will make it difficult to pay off the car repairs. This is why Credit Karma advises that you check the interest rate first.
If the interest rate is high, it’s better to apply for a low-interest credit card or for a credit card or line of credit that offers a temporary period of zero percent interest. If approved, you will not be collecting high amounts of interest and it will be easier to pay off the Mercedes’ repairs.
Alternative financing is an option for those who have no credit or bad credit. This option comes with higher interest rates than traditional financing options. In most cases, you must also pay back the loan plus interest quickly, sometimes in as much as two weeks.
A payday loan is an example of an alternative financing option for your Mercedes’ repairs. You borrow the money against your next paycheck. The caveat is you must pay the payday loan back plus interest automatically out of your next paycheck. This makes things extremely difficult.
If you own your Mercedes, you may also be able to take out a title loan. This means you borrow against the title of the European automobile. You turn the title over for the money you need to repair the vehicle, and you get the title back when you pay off the loan and interest.
These options can make your financial situation even worse. It’s important that you go into alternative financing with a clear understanding of the loan conditions and payback terms. Again, you can also apply for financing directly from our website.