Auto Parts Financing: The Do’s and Don’ts

So you’re looking for some new auto parts to complement your car’s look and attitude on the road. Excellent! You’re like most people driving down the freeway. In fact, most people take pride in the appearance and performance of their vehicles, and spend a lot of money on extensive modifications. However, this can be expensive.

Unfortunately, not everyone can satisfy their need for speed on their current salary. Fortunately, there are some services that allow you to pay for your purchases over time. This can be convenient for emergency repairs such as blown head gaskets, transmission failure, or other catastrophic failures that require a quick fix, getting you back on the road. These services can also be used to purchase parts that are not necessarily an emergency, but are still wanted by the owner.

I’ve found a few auto parts financing options, and I’ll provide information on them in hopes of informing you so you can make the right decision if you find yourself in a situation that requires you to finance auto parts.

PayPal Credit – PayPal Credit, formerly known as BillMeLater, has been around since 2000. Users sign up for free, submit information for a credit check, and can start making purchases if an account is approved. Payment terms are generally set in increments over six months or until the full cost is paid. If the total is not paid in full after the six-month period, an interest rate of 19.99% is applied in the form of a late fee. If you are considering using PayPal Credit, be aware of the payment terms and beware of the high interest rate. PayPal Credit is a good option for financing auto parts as it is used by many e-commerce sites that tend to have lower prices than many traditional stores.

CarCareONE – CarCareONE is an auto parts financing service that works much like a credit card. Managed by Synchrony Financial, which has been around since the 1930s, CarCarONE lets you make monthly payments for routine maintenance, service station trips and emergency repairs at moderately low interest. Plus, no interest is applied to your purchases if they are canceled within 6 months. To register, you must request and consent to a credit and background check prior to making purchases. CarCareOne is great for emergency purchases as it’s accepted at over 16,000 locations nationwide, but be aware of high interest rates if you don’t pay in the first 6 months.

Say – Affirm is a relatively new way to finance auto parts, but it offers the most leniency on credit. Like PayPal Credit, Affirm offers a line of credit for users to spend on purchases. However, this line of credit is not fixed, but is subscribed according to the amount and the merchant from which it was purchased. Affirm charges small finance charges with each payment, so you risk paying more over time if you decide to split your purchase over multiple payments, but the fees are generally small. Affirm is a great option for users who want to buy parts but prefer to pay for the item in installments without risking the high long-term interest rates seen with PayPal Credit and CarCareOne. Remember, Affirm doesn’t affect your credit line, so this method may be the best option if your credit is low.

We hope this article has cleared up some questions you may have about financing auto parts. While it may not always be the best long-term option, it’s a great option for emergencies!