Paying for expensive car repair

[Red Pajama]

So, I've got a van that needs a transmission rebuild. I've decided to do it, rather than try to sell it and get something different, or ignore the problem and drive it into the ground.

The total bill will be more than we have on hand. The two chioces as I see them are to put the cost on my credit card (12.9% variable apr, compounding intrest) or taking a small, unsecured loan out from our bank, at 12% fixed, payable over the next two years. Loan initiation is $120.

The thought of having that on my credit card about makes me sick. We've qualified for the loan with the bank. Is there any reason that the bank is not a good move?

[xJewelx]

Have you talked to the mechanic doing the work to see if they'll allow you to make payments on the bill? It's worth a shot, especially if you have a good amount to pay up front.

[gothnurse3]

I agree with the above poster. If the payment system won't work what about paying him cash ( green cash goes a LONG WAY) and if he will decrease the price? If not I would give him the amount I could afford then either charge or get the loan for the remainder. Then I would eat beans and rice and pay that off ASAP. Good luck!!!

[2cutiekitties]

Yikes, how much is a transmission? I would do the loan from the bank, personally.....

[UberMama]

Dumb question - have you looked around at other (recommended/well known/GOOD) mechanics? Have you tried to bargain with them, get them to accept a payment plan, negotiate in anyway?

While some shops don't do it, many will negotiate and/or accept payment plans. Awhile back, my Dad got the shop he takes his car to to trade an item of his for a minor car repair he needed even! Obviously, bartering is more personal usually and less likely to happen with a mechanic/shop you do not know, though.

ETA: If it comes down to it, I'd do the loan.

[Red Pajama]

Thanks for replies. I'd already priced the work, and knew it was typical for the job, and was working with the shop my dad recommended. I'd asked him about discounts, payment plans, etc. He (the shop owner) said that he actually loses buisness with payment plans, and does not do them anymore. He said when he allowed people to pay over time, they would get the car, and some would stop paying after they were in possession of the car. Then, when they needed more work, they took it elsewhere, as they still owed him money. As much as I hate it for me, it does make good buisness sense to insist it be paid for before pickup.

Anyway, we'll go with the loan and try to pay it off quickly.