How do I get a car loan without using the car as collateral?

I want to buy a used car, but I don't want to pay for full coverage car insurance. Can I get a loan for a vehicle without using the car as collateral?

Answer
Looking for a new vehicle is always exciting! Traditionally, the financed vehicle is used as collateral on most car loans, however, you can opt for a personal loan (aka, a “signature loan”) if you don’t want to use your car as collateral.
Signature loans don’t require any collateral. To get one, you need to provide your…
  • Credit history
  • Income
  • Signature
The only catch is that it’s unlikely you’ll be approved for a signature loan unless you have a steady income and a good credit score.
If you don’t qualify, you’ll likely have to use your vehicle as collateral to secure a loan. If you’re worried about overpaying for full-coverage insurance on your new vehicle, download the car insurance comparison shopping app Jerry.
Jerry compares quotes from up to 50 top insurers in mere seconds! The best part? The average Jerry driver saves $879 on insurance a year!
Eric Schad
Answered on Oct 25, 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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