A car is one of the most important pieces of equipment that many people own. It opens up broader opportunities to take work further away from home and even enjoy yourself by traveling wherever you want to go. The concept of being able to afford a car, though—that’s where most people need a little help. Most individuals don’t have enough money (or don’t want) to purchase a car outright in cash. In these situations, an auto loan can be the ideal solution.
Can I Just Get A Personal Loan For A Car?
To understand how a personal auto loan can help you, it’s important that you first realize that there’s a difference between a personal loan and a personal auto loan. A personal loan is a loan that you take out to buy just about anything, from a car to a new shed. However, a personal auto loan can only be used for a vehicle. While it’s certainly possible to take out a personal loan to buy a car, most scenarios benefit most from an auto loan. The professionals at Woodsboro Bank would be happy to compare these options for your specific situation.
Advantages Of A Personal Auto Loan
Because a personal auto loan is specifically crafted to afford you the option of buying a vehicle, it comes with some perks and advantages that personal loans do not usually offer.
- Interest rates: In general, loans with no physical collateral will charge higher rates overall. Because a personal auto loan is secured by the vehicle itself, lenders can usually offer lower interest rates than you’ll find on generic loans.
- Greater accessibility: In the same vein, those who are still building their credit score will not necessarily be turned away from an auto loan. Because the vehicle is serving as collateral, the loan is less risky for the lender, who may be willing to lend to those who otherwise wouldn’t qualify for a personal loan.
- Replaces cash: Sometimes, the cash you have on hand is your emergency fund. Other times, you may want to invest it to see it grow over time. In these situations, you may not be willing to fund a car purchase in cash. A personal auto loan can help you keep your cash in hand and spread the cost of a vehicle out over multiple years.
Is A Personal Auto Loan Right For You? The Experts Can Help You Decide
The right type of auto loan for you will depend on your unique situation, and Woodsboro Bank is proud to offer customized solutions no matter where you are in life. We get to know our clients individually so that we can recommend the products that best solve their problems. Reach out to your local branch to ask questions or to get started today.