Is it better to take a car loan or just a loan?
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Tetraider
- Posts: 5
- Joined: Mon Sep 05, 2022 11:02 am
Is it better to take a car loan or just a loan?
The main difference between a car loan and a consumer loan is the rate. If we compare a car loan with a consumer loan without insurance, collateral and guarantors, car loan rates are lower by 3-10 percentage points - it depends on the bank. There are fewer risks for a bank in a car loan.
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GurField
- Posts: 3
- Joined: Sun Oct 30, 2022 4:23 pm
Re: Is it better to take a car loan or just a loan?
It is generally recommended to use an auto loan to finance the purchase of a car because these types of loans tend to have lower credit rating requirements and offer lower interest rates. In any case, when I took out a loan, I didn't use a car loan through a dealer, but instead took a loan from apply.credit9.com against the recommendations. Overall, I haven't regretted it as I have a pretty low interest rate. Hope I helped you out!