Is A Personal Loan Cheaper Than Car Finance

Car loans aren t the only way to finance a car.

Is a personal loan cheaper than car finance. A less than average credit history. Because personal loans are unsecured they usually have higher rates than auto loans which are secured by your vehicle. Car loans tend to have lower interest rates than personal loans because of the fact they re secured.

More often than not we take out car finance directly through the dealership. And just like the personal loan the shorter the term the higher the monthly repayment and vice versa. When you re looking for a convenient and easy way to buy a car a personal loan may offer a few extra conveniences you won t get with a car loan.

Personal loans are best for large one time expenses like debt consolidation. The average personal loan rate on the other hand was reported by experian as 9 37. In some cases though it could work out cheaper in the long run to get a personal loan to buy a car.

Still it s worth shopping around before you ever set foot on a lot all auto loan credit inquiries made within 30 days so you won t be penalized for getting a variety of quotes on a variety of different loans. What s in this guide. However the interest rates may be higher so compare your rates carefully before you apply.