You have a big problem, your car needs some major repairs and you do not have enough money to cover the costs. There are several factors that you want to look into before you decide to take out a personal loan to cover the repair costs.

Obviously this car has expired its manufactures’ warrantee and the vehicle will be a little bit older in age. Has the car provided you with sound, reliable service? Are other repairs in the future? If you know your vehicle well and have just had a bit of bad luck, then yes, take a personal loan to fix the problem.

If the car or truck in question can be on its last legs, you are better off cutting your losses and using the money borrowed to buy a newer vehicle. You do not want to get into a situation where you become “Car Poor”; the amount that you have spent on the vehicle exceeds its actual value.

The major factors depend on what the problem with the vehicle is. Major engine problems will tend to lead to a lot of other problems that can cost more money down the road. You may have cooling issues or oil problems that will cripple the car’s usefulness. Suspension problems are an easy fix and I recommend that you take a loan on these issues; it’s just wear and tear.

If you are fixing up an older antique car, then a personal loan to help you with the cost is recommended. You will get your money back if you know what you are doing.

If you have a car that is worth less than $5000.00 by the “Kelly Blue Book” value, then you do not want to spend more than $1000.00 on repairs. If you have the credit for a personal loan, you have used car credit. You are better off taking a loan for another car than fixing a vehicle that will continue to be a costly issue.

Make sure that you feel that the vehicle is worth the investment. If you are in this situation, be sure that you know your vehicles history and have faith that the money spent will be worth it. You do not want to spend a lot of money on a car that will have more problems ahead of it. If the vehicle has been loyal and needs a minor repair to keep it running smoothly, take out the loan.