# Personal Loans for Car Purchases

> Personal loans can buy cars when auto loans aren't available.
- Title: Personal Loans for Car Purchases · Yahoo Finance | Shortify
- Summary: Personal loans can buy cars when auto loans aren't available. You can use a personal loan to finance a used car if conventional financing isn't available or…
- Keywords: personal loan, car purchase, used car, auto loan, conventional financing, credit score, subprime lender, interest rate, business, finance, Personal, Loans
- Source: Yahoo Finance — https://finance.yahoo.com/markets/options/articles/personal-loan-buy-car-024352858.html
- Published: 2026-09-17T14:13:52+00:00
- Read time: 1 min
- Topics: personal loan, car purchase, used car, auto loan, conventional financing, credit score, subprime lender, interest rate, business, finance
## Can you use a personal loan to buy a car?
You can use a personal loan to finance a used car if conventional financing isn't available or if you can't qualify for an auto loan.
## Personal loans for car purchases
Rates can be higher and repayment terms shorter, compared to traditional auto loans.
## Avoid repossession with personal loans
You may be able to avoid repossession of your vehicle if you default on a personal loan.
## Conventional financing not available
If you are considering buying an older car, it may not always be possible to secure a conventional loan with competitive auto loan rates.
## Credit too low for auto loan
If you have less-than-ideal credit, getting a car loan may be difficult, though some lenders offer bad credit personal loans.
## Subprime lender options
A second-chance auto loan, or subprime loan, is another option but often comes with higher monthly payments.
## Interest rates comparison
The average interest rate for used cars was 19.10% in the second quarter of 2026, according to data from Experian.
## Personal loan pros and cons
Personal loans do not require a down payment, while many auto loans do.
## Bottom line
When buying a used car, a personal loan can sometimes be more favorable than a traditional auto loan.
## Key takeaway

You can use a personal loan to finance a used car if conventional financing isn't available or if you can't qualify for an auto loan.