Fintelligence Awards FY26 winnerCar repair loans
When the quote from the mechanic is bigger than your savings, a Perth broker compares the lenders for you, so you can get back on the road.
30+ lenderscompared for you
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The quote from my mechanic
$3,000
What is the repair?
A Perth broker compares the panel, then you apply once.
A car repair loan is usually an unsecured personal loan used to pay a mechanic, panel beater or tyre shop. You borrow the amount on the quote, the lender pays it into your account, and you repay it in fixed instalments over an agreed term.
Loans123 is a broker, not a lender. We look at your quote, your income and your credit file, then compare lenders on our panel to find ones that suit a repair bill of that size. The lender makes the final decision, and you see the full cost before you sign.
What a broker does for you
Tell us what you need- We compare the panel
The lender decides
You see the full cost of each option before you sign.
Some of the 30+ lenders
on our panel
What a personal loan for car repair can cover
Most repair bills fall into one of four groups. Knowing which one you are in helps you decide how much to borrow and how long to take to pay it back.
1 of 4
Engine, gearbox and cooling repairs
A failed head gasket, timing belt, clutch or automatic transmission is often the bill that pushes people to borrow, because it is large and the car will not run without it. Ask the workshop to itemise parts and labour, so you can compare a second quote line by line.
Before you borrow for a big mechanical job, weigh the repair against what the car is worth. If the repair costs close to the car's value, our guide to buying a used car well may help you decide whether to fix it or replace it.
2 of 4
Brakes, tyres and suspension you cannot put off
Worn brakes, bald tyres and failing shock absorbers are safety problems rather than comfort ones, and a car with them may not pass an inspection. These jobs are usually smaller, so a shorter loan term keeps the total interest down.
If several of these are due at once, get one quote for the lot. A single loan for the full amount is simpler to manage than putting part on a card and part on a payment plan.
3 of 4
Smash repairs and your insurance excess
After a crash, your insurer may cover the repair but leave you with the excess, or you may only have third party cover and face the whole panel beating bill yourself. A loan can cover either, once you know the exact figure.
Check your policy before you borrow. Some insurers let you pay the excess in instalments, and if the other driver was at fault you may not have to pay it at all.
4 of 4
Getting the car through rego or an inspection
Sometimes the bill is not one big failure but a list of small faults found at an inspection, all due before the car can be registered or sold. Each item is cheap on its own, and together they can still be more than you have spare.
Ask the inspector which items are required and which are advice. Borrow for the required work, and plan the rest for when your budget allows.
Which kind of loan suits a repair bill
Most car repairs are paid with an unsecured personal loan, but the right shape depends on the size of the bill and your credit history.
Unsecured personal loan
Nothing is used as security, so the lender looks closely at your income and credit history. Fixed repayments over a set term.
Secured personal loan
A car or other asset is used as security. That can mean a lower rate, but the asset is at risk if you cannot repay.
Bad credit personal loan
Lenders that look past an old default or late payments, usually at a higher rate. We check which ones suit before you apply.
Car repair loan calculator
Put in the quote, a term and an interest rate to see a rough repayment. The rate a lender offers you depends on your situation, so treat this as a guide only.
Repayments
Estimated repayment
$65
a fortnight for 2 years
Amount borrowed
$3,000
Interest
$389
Total repaid $3,389
The rate is an example you set, not a Loans123 or lender rate, and fees are left out, so the real cost will be higher.
Open the full loan calculatorHow to get a car repair loan through Loans123
Have the written quote from your mechanic in front of you. It tells us the amount, and lenders like to see what the money is for.
1Tell us what you need
A short online form or a call: the amount, what it is for, your income and your expenses.
2We compare the panel
A Loans123 broker compares 30+ lenders and explains the options that suit, with the full cost of each.
3The lender decides
You apply to the lender you choose. It checks your documents and credit history and makes the decision.
4Funds are paid out
Once you sign the contract, the lender pays the loan into your account. Timing depends on the lender.
- Funds go to your own account, so you pay the workshop directly and can collect the car as soon as the job is done.
Car repair loans with bad credit
A past default or a few missed payments does not automatically rule you out. Some lenders on our panel look at your current income and how you have managed money recently, not only your credit score, though the rate is usually higher.
Applying to several lenders yourself can leave a string of enquiries on your file. Because we compare lenders before you apply, you make one application to a lender that is more likely to suit you. Our page on bad credit loans explains how lenders look at an impaired file.
What lenders look at4 checks
Your income
What you earn and how regular it is, from payslips, Centrelink statements or bank records.
Your expenses
Rent, bills, dependants and the debts you already have, including cards and buy now pay later.
Recent conduct
How you have managed repayments over the last few months, not only an old default.
The amount
What the loan is for and whether the repayments fit your budget comfortably.
Before you borrow: a NILS loan for car repairs and other options
A loan is not always the lowest cost way to pay for a repair. These are worth checking first, and some cost nothing at all.
Check this firstNo Interest Loan (NILS)
Suits: Repairs up to $2,000 if you earn under $70,000 as a single person, or $100,000 with a partner or dependants, or hold a Health Care or Pension Card.
There is no interest and no fees, and the provider pays the mechanic's invoice directly, so it is not a cash loan. Applications go through a local community provider and take some time.
Source: Moneysmart, No Interest Loans
Centrelink advance payment
Suits: People already on an eligible Centrelink payment who need part of it early.
It is paid back out of your future payments, which leaves you with less each fortnight until it is repaid.
A payment plan with the workshop
Suits: Smaller jobs at a workshop you already use and trust.
Not every workshop offers one, and some run them through a finance provider with its own fees. Ask for the total you will pay.
Buy now pay later
Suits: A few hundred dollars that you can clear within a few weeks.
Missed instalments attract late fees, and several plans at once are easy to lose track of.
Your insurer
Suits: Crash damage, glass, and theft or storm damage on a comprehensive policy.
Check the excess and whether a claim affects your premium before you decide to claim or pay yourself.
Free financial counselling
Suits: Anyone who is already behind on bills or not sure a loan is affordable.
The National Debt Helpline on 1800 007 007 is free and independent, and can help you work out what you can afford before you borrow.
Source: National Debt Helpline
Talk it through with a Perth broker
A real person looks at your quote, your income and your credit file, compares the panel and explains each option in plain words. The team works from our Victoria Park office and answers the phone seven days.
4.9
75 Google reviews
2 Cargill St, Victoria Park WA 6100
Open 9am to 5pm, seven days
Rated 4.9 from 75 Google Reviews
Nathan provided exemplary service from the start to settlement. He kept us informed thru the process and made everything a breeze. Highly recommend Loans123 to anyone needing finance.
Had a professional, quick, easy and positive experience working with Nathan. Can't recommend his services high enough. Request him by name.
Nathan was great from our first meeting face to face to all my annoying phone calls. Sorted out in just over a week. Highly recommended.
Car repair loans: your questions answered
Still unsure?
Ask a broker to talk you through it, before you apply anywhere.
Can I get a car repair loan on Centrelink?
Some lenders on our panel accept Centrelink income as part of an application, as long as the repayments are affordable on your total income. If Centrelink is your only income, a No Interest Loan or a Centrelink advance payment may cost you less.
How fast can an emergency car repair loan be paid out?
It depends on the lender and on how quickly you can send your ID, payslips and bank statements. Having the mechanic's quote and your documents ready is the biggest thing you can do to speed it up, and our page on emergency loans covers what to have ready when the need is urgent.
Are there car repair loans with no credit check?
Every lender on the Loans123 panel checks your credit before it lends. The No Interest Loans Scheme does not run a credit check, though it does look at whether you can afford the repayments.
How much should I borrow for a car repair?
Borrow the amount on the written quote, plus a small buffer only if the mechanic has warned you the job may grow. Borrowing more than you need adds interest for no benefit.
Is it better to repair my car or replace it?
Compare the repair bill with the car's value and how much more life it has in it. If the repair costs close to what the car is worth, a car loan for a replacement may be the better use of the money.
Can I choose a short term to pay it off quickly?
Yes. A shorter term means higher repayments but less interest overall. Our guide to short and long loan terms shows how the two compare.
Can I use one loan for repairs and new tyres at the same time?
Yes. Get a single quote that covers all the work, and borrow that total. One loan with one repayment is easier to keep track of than several smaller debts.
What if my car breaks down again while I am still repaying?
Talk to us before taking on a second debt. Depending on your situation, a lender may consider a new loan that covers the new repair, or it may be cheaper to use one of the free options above.
Does comparing lenders through Loans123 affect my credit score?
Talking to a broker and comparing options does not put an enquiry on your file. An enquiry is recorded when you apply to a lender, which is why we compare first and you apply once.
Is Loans123 a lender?
No. Loans123 is a finance broker. We compare lenders on our panel and arrange the loan, and the lender makes the credit decision and sets the rate.
Other car finance options
Compare the rest of our vehicle finance range.
Ready to get your car fixed?
Send us your quote and we will compare lenders on our panel for a repair loan that fits your budget.
This page is general information only and does not take your objectives, financial situation or needs into account. Lending criteria, fees and charges apply, and approval is at the lender's discretion. Loans 123 (Aust) Pty Ltd (ABN 62 693 374 284) is an Authorised Credit Representative (#575877) of Fintelligence Pty Ltd, Australian Credit Licence 511803.