Personal Loans Unsecured Auto Loans
Loans not requiring the use of collateral are an increasingly common way to finance the purchase of both new and used autos. These auto loans are unsecured – meaning your home, car or other assets will not be used as collateral. Loans without a secured asset are faster to fund and are primarily based on your credit history and ability to repay.
When shopping for an auto loan it is important to shop around. That way you are guaranteed a great rate.
Unsecured auto loan rates are competitive with secured auto loans for individuals or joint applicants.
If you already have an auto loan you may be able to refinance into a better rate. Refinancing an existing auto loan into a better rate can save on total interest paid over the life of the loan. You may be able to reduce your monthly payment by lowering the interest rate or changing the term of the loan.
Consumers without much established credit or a less-than-perfect credit score may need a down payment to qualify for a more traditional secured auto loan. Personal loans can be used toward the down payment for a bad credit auto loan, as well.
There are many great benefits of using a personal loan to purchase a new or used car.
With an unsecured auto loan, the money can be transferred to your account before you head to the dealer or conduct a private-party transaction, which effectively makes you a cash buyer.
You'll be in a great position to negotiate the best possible deal while saving yourself from having to work with the auto dealership's financing department.
Unsecured auto loans are available with a fixed rate and set payment schedule. You can make extra payments toward the principal at any time, which reduces the total interest paid.