Car Loans - The Difference Between A Car Loan & A Personal Loan

Getting a car loan is a very common method of financing the purchase of a new or second hand car. A car loan is very similar to a personal loan in the way they work i.e. you borrow a lump sum to buy your car with and then make fixed regular repayments to repay the car loan. One difference between a car loan and a personal loan is that some car loans are in fact secured loans which are secured against your home, which means your home is at risk if you cannot repay the car loan. However there are unsecured car loans available which you can look for and then you will not have this to worry about. You could of course finance the purchase of your car with an unsecured personal loan instead of a specific car loan as personal loans usually allow you to buy a car with the personal loan money.