Best Personal Loans to Buy a Car | November 2020
It is usually best to use an auto loan to buy a car, but in certain cases, personal loans can provide important advantages. Here are our top picks for the best personal loans to buy a car.
About 85% of new cars and 54% of used cars purchases are financed. Most people get better rates and terms with a traditional auto loan. However, if you're interested in buying a car, but don't have a down payment or don't want your car used as collateral, a personal loan can be a valid alternative. Personal loans don't require a down payment and provide a lump sum you can use however you see fit. For example, you could buy a car and use the extra funds to cover other expenses. Buying with a personal loan can also you give you more flexibility when choosing a car and negotiating a price.
However, it is important to note that personal loans also have important drawbacks. For instance, it's harder to qualify for large ammounts and you will probably pay higher interest rates than with a regular auto loan. Before making a decision, find out what rates and terms you qualify for with the top-rated lenders to buy a car.