How to Pay for Car Repairs When You're Short on Cash
Start with the repair shop and a written estimate, not a loan. If you do borrow, the type matters: a title loan uses the car you are fixing as security, so falling behind can mean losing the car. An installment loan or a credit union loan usually gives you longer to repay, but check whether it is secured by the car too. Rules for each differ by state.
Get the repair price down first
The Federal Trade Commission (FTC) advises getting a written estimate before work starts. It should identify the condition to be repaired, the parts needed and the anticipated labor charge. The FTC says the estimate should also state that the shop will contact you for approval before doing any work beyond a set amount of time or money. It also advises you to ask for the replaced parts (state law may require this) and to keep records of dates, costs and the people you talk to.
If the price is more than you can pay, you can:
- ask the shop what work is urgent and what can wait,
- get a second written estimate, and
- ask whether the shop offers a payment plan.
The FTC page we read is dated August 2012, so confirm current rules with your state attorney general's office, which the FTC names as a place to go for disputes.
The catch with a title loan
A title loan is a short-term loan that uses your car title as security. The Consumer Financial Protection Bureau (CFPB) reported in May 2016 that these loans typically run about 30 days with a single payment, and that one-in-five single-payment auto title loan borrowers had their vehicle seized. When you borrow against the car you are repairing, a missed payment puts that same car at risk.
What repossession means
The CFPB explains that if your car is repossessed and sold for less than you owe, you remain responsible for the gap, called a deficiency balance. Its example: if you owe $10,000 and the lender sells the car for $7,500, you owe the deficiency of $2,500, plus any other fees. The lender must send advance notice before a sale, and some states let you get the car back by paying overdue amounts or the full balance. Whether you can be billed for a deficiency depends on the state.
What our state rules say
- Virginia. A title loan must last 6 to 24 months and can be at most $2,500. After a default, the lender may repossess and sell the vehicle but, except when the borrower damages or hides it, cannot sue for a deficiency. You get 10 days written notice before repossession and 15 days before sale (Va. Code Ann. §§ 6.2-2215.1, 6.2-2217).
- Delaware. Before taking the vehicle, the lender must offer a workout agreement requiring at least a 10% net reduction of indebtedness every month. Sale proceeds satisfy all the debt, and you are not liable for a deficiency (5 Del. C. §§ 2255(a), 2260).
- Nevada. Before suing on a defaulted title loan, the lender must offer a repayment plan open at least 30 days after the default (Nev. Rev. Stat. 604A.5083(1)). A title loan can run to 210 days only if repaid in fully amortizing installments (604A.5074(3)).
- Texas. A business that arranges auto title loans must warn you that, on default, you may be required to surrender the vehicle (Tex. Fin. Code § 393.223(b)).
- Illinois. The state's consumer credit FAQ says a lender with a security interest in the vehicle may be able to repossess it on default.
- Ohio. A short-term lender cannot take a vehicle title as collateral (Ohio Rev. Code § 1321.41(H)). Kentucky and Montana no longer license title lenders.
Read our title loans guide for how the costs are built up.
Installment loans, payday loans and PALs
An installment loan is repaid in scheduled payments over weeks or months, and it may or may not be secured by your car, so read the contract. Our guide to installment loans vs. payday loans compares them. The CFPB says payday loans are typically repaid in one payment on your next payday, and that many states cap payday fees at $10 to $30 per $100 borrowed. A typical two-week loan with a $15 fee per $100 works out to an annual percentage rate (APR) of almost 400 percent. See how APR works and check where payday loans are legal.
A payday alternative loan (PAL) from a federal credit union has a capped rate, far below the payday APRs the CFPB describes. Under 12 CFR 701.21(c)(7), PALs I are $200 to $1,000 over 1 to 6 months, with one month of membership first. PALs II go up to $2,000 over 1 to 12 months. The application fee is at most $20. The National Credit Union Administration (NCUA) says the rate can be up to 28% while its current 18% ceiling applies.
What you'll need
Lenders usually ask for:
- A government photo ID.
- Proof of income, such as pay stubs or bank deposits.
- For a title loan, the car and the title in your name. Ask the lender what else it wants.
- The written repair estimate, which shows how much you need.
- An open checking account, if repayment is taken by debit.
Ask which documents it accepts before you go, and use lenders near me to find a licensed store.
State rules that can matter
| State | What the rule says | Law |
|---|---|---|
| Virginia | Title loan: 6 to 24 months, up to $2,500. No deficiency suit after default (unless the borrower damages or hides the car). 10 days notice before repossession, 15 before sale. | Va. Code Ann. §§ 6.2-2215.1, 6.2-2217 |
| Delaware | Workout agreement required before the lender takes the vehicle. Sale proceeds satisfy all debt; no deficiency. | 5 Del. C. §§ 2255(a), 2260 |
| Nevada | Title lender must offer a repayment plan open 30 days after default before suing. A title loan cannot exceed the car's fair market value. | Nev. Rev. Stat. 604A.5083(1), 604A.5076(1) |
| Utah | A title lender may not make a loan without regard to ability to repay and cannot lend more than the car's fair market value. | Utah Code § 7-24-202(3)(c), (d) |
| Missouri | From the third renewal of a title loan, the borrower must reduce the principal by 10 percent each time. | Mo. Rev. Stat. § 367.512.1(4) |
| Oregon | A title lender may not charge interest above 36 percent a year (excluding one origination fee), and the term is at least 31 days. | ORS 725A.062(1)-(3) |
| Ohio | A short-term lender cannot take a vehicle title as security. | Ohio Rev. Code § 1321.41(H) |
From our state rules data, last checked October 9, 2026. Rules change. Check your state's page in the lender directory. For some rows we have not yet confirmed the wording in the statute itself, so check the linked law or ask the state regulator before relying on one.
Options to consider first
These are general options, not recommendations of a particular provider:
- The shop. Ask for a phased repair, a payment plan or a second estimate.
- A credit union. Ask about a PAL or a small-dollar loan.
- Your state attorney general. The FTC names it as a place to take a repair dispute.
- 211. Call 211 or visit 211.org for help with rent, utilities and food, which can free up cash for the repair.
Frequently asked questions
Can I lose my car if I use a title loan to fix it?
Yes. A title loan uses the car as security, and the CFPB found in 2016 that one-in-five single-payment title loan borrowers had their vehicle seized. Some states add protections, such as Delaware's workout agreement.
What is a deficiency balance?
It is what you still owe if the car sells for less than the loan balance plus fees. In the CFPB's example, you owe $10,000, the car sells for $7,500, and the deficiency is $2,500 plus fees. Some states, such as Virginia and Delaware for title loans, limit it.
Is an installment loan safer than a title loan?
It depends on the contract. An installment loan is repaid in scheduled payments and is often unsecured, but check whether your car is pledged. Compare the APR and total cost.
What should a repair estimate include?
The FTC says a written estimate should identify the condition to be repaired, the parts needed and the anticipated labor charge, and state that the shop will contact you before extra work.
Do credit unions offer loans for repairs?
Federal credit unions may offer payday alternative loans of $200 to $2,000 under NCUA rules. Each credit union sets its own membership and approval rules, so ask.
Sources
- Auto Repair Basics, Federal Trade Commission, last updated August 2012, checked October 11, 2026.
- What happens if my car is repossessed?, Consumer Financial Protection Bureau, updated April 5, 2024.
- Research finds one-in-five auto title loan borrowers have their vehicle seized, Consumer Financial Protection Bureau, May 18, 2016.
- What is a payday loan?, Consumer Financial Protection Bureau, reviewed May 28, 2024.
- 12 CFR 701.21, Loans to members (payday alternative loans), eCFR, checked October 11, 2026.
- Permissible Loan Interest Rate Ceiling Extended, National Credit Union Administration, February 2026.
- Title rules for Virginia, Delaware, Nevada, Texas, Illinois, Ohio, Kentucky, Montana, Utah, Missouri and Oregon: our lender directory state rules data, last checked October 9, 2026, with the statute cited in the text and table (Illinois: IDFPR DFI consumer credit FAQ; Texas: Tex. Fin. Code ch. 393).
- 211.org, United Way Worldwide, checked October 11, 2026.
We are not a lender. This is general information, not legal advice. Rules change; check your state's current rules and the lender's own disclosures before you borrow.
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