The short answer to this question is yes. In general, personal loans have almost no restrictions on the purposes of using the money. Still, the process is individual. Before making a decision, you should conduct a research, compare offers from different banks, credit unions, and lenders. Only after doing this work, you should choose a personal or an auto loan to purchase a vehicle.
Furthermore, before choosing one of two options, you should calculate everything. Use Auto Loan Comparison Tool and Personal Loan Comparison Tool to understand what variant is more beneficial.
What are Personal Loans for Used Cars?
Speaking of the personal loans for used cars, sometimes getting a personal loan is more beneficial. For instance, Axis Bank offers interest rates on personal loans between 11.49% and 20%. Interest rates on loans for used cars usually start from 15%.
The interest rate and APR depend on the credit score, income, loan amount, etc. Therefore, if these factors are alright, you can qualify for the personal loan.
The same happens to the personal loans for older cars. In some banks, the loan terms and requirements of the personal loan for older cars are more beneficial than auto loans offer.
Are Personal Loans Good for Cars?
In general, personal loans for cars might be. They are a cheaper solution when you are looking for the personal loans for cars. Don’t forget to ask about not interest rate only but about APR too. Personal loans might include substantial fees and additional charges.
Furthermore, if you are planning to apply for a mortgage soon, it’s better to consider an auto loan. Personal loans might affect your credit rating in a more negative way.