Auto Loans Are NOT Personal Loans

I get asked from time to time about personal loans for cars. These loans do not exist and I find it quite funny that people look for them. What they are usually looking for is private auto loans - not personal auto loans.

Private loans are often available for cars but you'll have to find a private lender in your area. Sometimes the best loan providers of this type are friends and family members. Generally speaking a private lender will charge you more interest than a bank - unless they are a friend or family member. Friends will usually give you a good deal and family will often give you a private loan for free. Banks and other private lenders will not.

Personal loans are generally loans like signature loans and payday loans - loans that you take out with no collateral. When you take out a loan on a car you will always have a lien on the car until it's paid off.