Personal Loan to Buy a Car

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Checking offers will not impact your credit score*

Competitive payment options

Funding up to $100,000 and APRs as low as 3.99%*

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Same-day and next-day available for certain offers*

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Learn How to Secure a Personal Loan to Buy a Car

If you have decided that you want a personal loan to buy a car, use Acorn Finance to secure a loan that is right for you. From the comfort of your own home you can check personal loan offers. Acorn Finance has a network of top national lenders that can offer some of the most competitive personal loans.

Quick. Simple. Secure.

How To Apply For Personal Loan to Buy a Car

1 Pre-qualify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score

2 Select offer

Compare terms and payment options to select offer that’s best for you

3 Finish application

Complete application process on your selected lender’s website*

4 Receive funding

After loan approval, your funds should arrive within 1-2 business days*

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“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”

 

- Mike T. (TN)

“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”

 

- Carol R (FL)

“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”

 

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FREQUENTLY ASKED QUESTIONS

Learn More About Personal Loan to Buy a Car

Personal loans can be used to buy a car. If you are making an inexpensive or private party purchase, a personal loan may be a good option. In most cases, a traditional auto loan will make the most sense but there are plenty of scenarios where a personal loan may work. Auto loans often have strict guidelines and requirements that you may not meet. Keep reading to learn more about using a personal loan to buy a car.

Read more - FAQ

Can you get a personal loan to buy a car?

Yes, of course, you can use a personal loan to purchase a car, but do you want to? It really depends on your situation. There are many circumstances where using a personal loan to purchase a vehicle makes more sense than using a traditional car loan. For example, if you are looking to purchase a vehicle from a private owner. Sometimes it may be hard to get a bank or lender to loan out a car loan for a used car that is not purchased through a dealership. Maybe you are looking to buy a used vehicle from a family member and the bank does not wish to get involved, or you do not want to get the bank involved. By using a personal loan, you can get the upfront cash that you need to pay the private owner, and then simply pay back the lender for the personal loan. This takes the risk away from the previous owner who can then rest easy knowing that they do not need to collect payments, and it makes it easier for the purchaser to simply pay off the car by making monthly payments directly to the lender.

Another circumstance where a personal loan would be better than a traditional car loan is if you are purchasing a classic muscle car that is to be a project car. It may not be running, it may be over 40-years old, it may need some significant work before any value can be recouped. If this is the case, many banks and lenders will not want to loan out a car loan to pay for the vehicle purchase. If you default on the loan, then how does the bank recoup their money. Also, it is very difficult to quantify the value of a classic car, especially if it is still in need of work.

Last, maybe you do not want to get the bank involved in a car loan because you do not want to use the vehicle as collateral for whatever reason. Maybe this is your only mode of transportation and money is tight right now and any interruption to reliable transportation may put your job at risk. A risk that you cannot afford. For this, if you can qualify, a personal loan may be a better option so that you can get the money you need to purchase the vehicle, make the monthly payments, and if for any reason you become in danger of default, you will know that at least your vehicle can not be repossessed, leaving you without transportation, and potentially without a job.

What credit score do you need to get a personal loan to buy a car?

If you are looking for a traditional car loan, you may want to have a credit score of 660 or higher. If you are looking for a personal loan to purchase a new used vehicle, your credit score may not need to be as high. Although it is important to try to have the best credit score possible in order to qualify for lower interest rates and other favorable terms, you may still be able to get a personal loan to purchase a vehicle with a credit score as low as 580. Depending on the lender, minimum credit score requirements vary. While many lenders may still require a higher credit score, some lenders are willing to work with borrowers with credit scores around 610, 600, or even as low as 580. The catch is, the lower your credit score, the higher the interest rate you will be required to pay. But, if you are someone in dire need of a vehicle to get to work, pick up your kids, and grocery shop, then you may be ok with paying higher interest if you are able to take care of your immediate transportation needs.

Is a personal loan cheaper than car finance?

The short answer is no. Most often, since the car being financed is being used as collateral to secure the car loan, interest rates may be lower when compared to the interest rates of a personal loan for someone with the same credit score. If you are looking for the cheapest way to finance a vehicle, then it is recommended that you apply for a traditional car loan to finance your new vehicle purchase. But, as we discussed before, this may not be the most logical course of action for people in certain situations. Sometimes it may be worth paying a little higher APR in exchange to not use the vehicle as collateral, to finance a private owner vehicle purchase, or to buy your dream project car.

Why shouldn’t you get a car on finance?

Financing usually comes with added expense. If you only qualify for high interest rates, you may want to consider paying cash for a vehicle, if you have the cash available. Another reason you may not want to finance a car is if you are unsure about affording the monthly payments. In some cases, you may be better off to save up and purchase a vehicle for cash rather than use financing. However, financing may allow you to purchase a safer and more reliable vehicle that will last longer. This may help consumers justify the added expense of financing.

How much can you take out for a personal loan to buy a car?

With any personal loan there are limitations. Typically, personal loans are no larger than $100,000, meaning, you can borrow any dollar amount up to that point. The question is, do you really want to purchase a new vehicle that is $100,000. Additionally, you will only be able to qualify for up to a certain amount for a personal loan based on your credit profile. It may be in your best interest to pre-qualify for a personal loan before you begin vehicle shopping. ONce you pre-qualify, you will know exactly how much you can budget to make your vehicle purchase. Not only will you know your budget, but you will also know what kind of interest rate you may qualify for as well.

What are the advantages of getting a personal loan to buy a car?

The main advantage of using a personal loan to buy a car is that you will not involve a bank in any decisions about how the money is spent, you do not need to use the vehicle as collateral, and you can pre-qualify before car shopping to create a budget. Additionally, if you are looking to purchase a vehicle that a lender may be wary of financing, like a classic project car, you can still get the money you need to make the purchase with no issue.

What are the disadvantages of getting a personal loan to buy a car?

The number one main disadvantage of using a personal loan to buy a car is that most often you will pay a higher interest rate than if you use a car loan. Car loans typically come with lower interest rates because the car is used as collateral on the loan. If for any reason you become in default, the bank or lender then has the right to repossess the vehicle in order to recoup as much of the original loan amount as it can.

Where can I get a personal loan to buy a car?

Before securing a personal loan to buy a car or any other reason, you should compare offers. Most banks, credit unions, and online lenders offer personal loans for vehicle purchases. However, it may be harder to compare offers between banks and credit unions. Online lenders are very competitive within the personal loan space. At Acorn Finance you can access offers from top national lenders without impacting your credit score. Within 60 seconds or less you can get prequalified and compare offers.

Closing Thoughts

If you have decided that you want a personal loan to buy a car, use Acorn Finance to secure a loan that is right for you. From the comfort of your own home you can check personal loan offers. Acorn Finance has a network of top national lenders that can offer some of the most competitive personal loans.

Get prequalified for a personal loan to buy a car. . . check offers today!

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