usually uses the vehicle you’re buying as collateral for the loan. However, you don’t have to go this route.
If you don’t want to use the car as collateral, you may be able to get a personal loan to pay for the vehicle. While this type of loan has a much higher interest rate, if you default, the lender can’t come after your car.
If you have great credit and haven’t missed payments in the past, a traditional car loan with the car as collateral is still advisable due to a far lower interest rate than a personal loan.
If you decide to go through with a car loan, remember that your lender will require you to purchase
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