Can I use a signature loan to buy a car?

I want to buy an older car, but my bank says it doesn't qualify as a classic car. Can I use a signature loan to buy the vehicle instead?

Answer
If you want to buy an older vehicle and you’re constantly denied a traditional car loan, a signature loan (also known as a personal loan) is a possible alternative.
Generally speaking, lenders won’t lend you money for a car that’s 10-years-old or older or has more than 100,000 miles unless it meets the lender’s qualifications for a classic car.
If it’s not a classic car, you can use a signature loan to buy the vehicle, but you will pay lots more in interest, simply because a signature loan doesn’t use anything other than your signature as collateral. Therefore, paying the loan off early or more quickly is advantageous to save money.
Getting a signature loan for a car gives you a unique advantage: you have control over your car insurance. With traditional car loans, you are required to carry full coverage, but a signature loan does not have this same requirement.
Even if you don’t want full coverage, it’s still worth shopping around for lower rates on car insurance using the Jerry app. Jerry compares personalized rates with more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 23, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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