A car can be essential for work or caring for others yet repair costs soon mount up when it stops running – but help might be on hand with grants or interest free loans
Many of us have been there. Relying on our car or van to work or for caring for children or elderly or disabled relatives when it suddenly grinds to a halt signalling a trip to the garage and along with it potentially hefty bills.
But what if the worst happens when you are on a low income and the vehicle stops running just when your bank account is drained to its last pennies or you are already in the red? Well, the good news is help might be available.
Financial advice website moneyplusadvice says: “When your car breaks down, the financial impact can be immediate and significant. For many people, a working vehicle isn’t a luxury – it’s essential for getting to work, picking up kids, or just getting to the shops.
“So when the mechanic says it’s going to cost hundreds (or even thousands) to fix, and your bank balance is already on the edge, what can you do?” The advice site points out you are not alone and even has some answers.
It says: “It’s not just you. According to the Office for National Statistics, over a quarter of UK households reported that they would struggle to afford an unexpected £850 bill. That means even a routine repair – like a clutch or brake replacement – could be enough to cause real hardship.
“And car costs don’t happen in isolation. They often come alongside other pressures – rising fuel prices, inflation, or the need to replace work equipment stored in the car. If you’re already budgeting tightly, a broken vehicle can upend everything.
“Unlike planned expenses, emergency repairs usually come out of the blue. If your MOT fails or your car breaks down, you often have no time to save or shop around. And because cars are often needed for earning a living, it can feel like there’s no choice but to pay – even if it means using credit or going without other essentials.”
It says there are options available. It explains: “If you’ve found yourself with no money and your car broken, you’re not alone. Many people face this situation each year. The key is not to panic and avoid quick decisions that could lead to further debt.
Here are your first steps:
- Get a second opinion – if the repair quote is high, consider asking another garage. Labour and parts costs can vary significantly
- Check your warranty or insurance – some parts or issues may be covered
- Speak to the garage – you might be able to agree a payment plan or defer the work until payday
- Explore interest-free options – some garages offer 0% finance for repairs. Be sure to read the terms carefully
Help if you can’t pay for car repair
Moneyplusadvice says if you are facing a high car repair cost due to an emergency, there may be grants or schemes that can help. These include:
- Local welfare schemes – run by your council, these may help with essential costs.
- Budgeting Loans – if you receive certain benefits, you might be eligible for an interest-free Budgeting Loan from the government.
- Charitable grants – some charities offer help based on occupation, location or need. Turn2us has a free grant search tool.
It adds: “Unfortunately, there aren’t many national grants specifically for car repairs, but if your vehicle is essential for work or caring responsibilities, it’s worth asking local services or your Jobcentre if help is available.”
When emergency costs lead to debt
For some, an unexpected cost like a car repair might be the tipping point into debt. If you’ve used a credit card, overdraft or payday loan to cover the cost, it’s important to think ahead about how you’ll repay it. The same goes if you’ve missed rent, bills or other priority payments to afford the repair.
When this happens, it’s worth getting tailored debt advice. Some debt solutions like a Debt Management Plan (DMP) can reduce what you pay toward unsecured debts each month, helping you keep up with essentials.
Simple ways to prepare for the next emergency
It might feel impossible to save when money’s tight, but even small changes can make a difference. Here are a few tips to protect yourself from the impact of unexpected costs:
- Create a basic emergency fund – even £50 saved over a few months can cushion the next small emergency.
- Use a budgeting tool – try a free budget planner to see where your money goes.
- Plan your car costs – MOT, tax, insurance, and servicing can be spread out across the year. Set a calendar reminder so you’re not caught off guard.
Know your priorities
When money is tight, it’s crucial to know which bills to pay first. Missing some payments has more serious consequences than others. For example:
- Rent and mortgage payments come first (you could lose your home if you fall behind)
- Council tax and energy bills are also priority debts
- Credit cards and personal loans are considered non-priority.
