Many traditional auto lenders only work with dealerships. If you're buying from a neighbor or off Facebook Marketplace, a personal loan gives you the cash in hand to close the deal fast.
For most, a standard auto loan is cheaper. However, a personal loan is the better "story" in these specific scenarios: can i use a personal loan to buy a car
Yes, you can absolutely use a personal loan to buy a car, but it’s a different "path" than a standard auto loan. While an auto loan uses the car as collateral, a personal loan is usually unsecured—meaning the lender doesn't have a direct claim to the vehicle if you miss payments. 🚗 When a Personal Loan Wins Many traditional auto lenders only work with dealerships
Because the car isn't collateral, you get the title in your name immediately. You can sell the car whenever you want without asking a bank for permission. However, a personal loan is the better "story"
Most personal loans cover 100% of the cost, whereas some auto loans require 10%–20% down. ⚠️ The Trade-Offs Can You Use a Personal Loan to Buy a Car - TD Bank