Can you use a personal loan to buy a car?

I want to buy a car with a rebuilt title, but my credit union told me they don't offer car loans on these types of vehicles. Other lenders say the same thing. Can I get a personal loan to make the purchase?

Answer
If you want to buy a car with a rebuilt title, more power to you! Often, you can find a bargain on these cars, especially if they pass safety inspections and are repaired by a skilled mechanic. You can take out a personal loan to buy the rebuilt car.
While the interest rate may be two, three, or even four times higher than a normal car loan, a personal loan will get you the funds you need. As a bonus, your car won’t be held as collateral, so you’re free to get whatever insurance you want and won’t risk losing the car if you default.
Like you said, you won’t have much luck getting a traditional car loan, even if you have a great credit score. Most lenders will simply balk at the concept of covering a car with a rebuilt title, even if it has been repaired well.
When it comes time to insure your rebuilt car, make sure to use Jerry to compare dozens of competitive quotes and find the best savings available.
Eric Schad
Answered on Oct 28, 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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