Using a Personal Loan for Car Repairs
A failed transmission, engine trouble, or brake repair can turn into an emergency fast, especially if you rely on your car to get to work. A personal loan gets the repair covered quickly so you're not without transportation any longer than necessary. It's one of several reasons Canadians borrow that we cover in detail.
What It Typically Covers
- Transmission and engine repairs
- Brake and suspension work
- Diagnostic and labour fees
- Towing costs
Eligibility Requirements
- 18 years or older (19 in BC, NB, NL, NS, NT, NU, and YT)
- Canadian citizen or permanent resident
- Valid Social Insurance Number (SIN)
- Active bank account in your name
- A regular source of income
How Much Do You Typically Need?
For car repairs, borrowers often look at around $1,200 — though the right amount depends on your specific situation.
Pros
- Fast approval — often within minutes
- Soft credit check only, so checking rates doesn't hurt your score
- Repayment term sized to the amount, keeping payments manageable
- Available to a wide range of credit profiles
Things to Consider
- Get a second quote for major repairs — costs can vary significantly between shops.
- Weigh the repair cost against the vehicle's value — sometimes replacement makes more financial sense.
- Ask your mechanic for a repair priority list if you're on a tight budget; not everything needs fixing at once.
How to Apply for a Car Repairs Loan
Step 1
Apply in 2 minutes
Tell us you're covering car repairs and a bit about your situation. No paperwork.
Step 2
Compare offers
See real offers from vetted lenders, matched to your credit profile.
Step 3
Get funded
Accept an offer and funds typically land within 24 hours.