If your purpose is to buy a car, a car loan is better for you for a few reasons:

First, lenders will charge lower interest rates and fees because they are attaching the risk to an asset — in this case, the car. Having a tangible item that they can repossess and sell if the borrower can’t make payments reduces their risk. And lower risk for the lender means lower rates for the borrower. A personal loan, on the other hand, is unsecured, which means that your lender can’t seize your car.

Second, car loans are generally easier to qualify for than personal loans. They have more forgiving credit requirements because, as mentioned above, lenders can protect themselves by repossessing your car if you default on payments. It’s even possible to qualify for a car loan if you have a lousy credit score or non-existent credit history.