PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you use a car loan for other things?
I’m very new to the whole car loan process, but I intend to take a loan out soon. If there’s money left after buying the car, is it okay to use a car loan to buy other things?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Car loans
are different from most other types of loans—they can only be used to purchase a specific vehicle. So, no, you can’t use a car loan for other things.During the loan application process, the lender will ask for the vehicle identification number, or VIN, of the car you intend to purchase. That specific car will be used as collateral for the loan, all of which is documented within the loan paperwork. That way, if you were to stop paying, the lender can take possession of the vehicle to pay off the remaining loan balance.
All that said, you won’t even be able to use the loan to get a different car—even if it is the same price. The lender would need to redo the paperwork instead.
If you’re in need of some extra cash, you should consider checking out the
Jerry
app to shop for cheaper car insurance. Jerry is a fully-licensed broker backed by an experienced team of agents dedicated to helping you save time and money.Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year!
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
