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Car Dreams, Loan Life – How to Use a Personal Loan to Make It Happen

Written by:

Christie Petersen

Edited by:

Kristin Marino

Updated on September 4, 2025

buying a car Buying a new car can be an exciting yet stressful experience. While you work to find the right car, you also have to figure out how to save for a down payment and finance your new wheels.

While the reason for buying a car might seem obvious, some people see the need for a car differently. For example, you plan to open a small business as a locksmith, having a reliable car to get you to your customers is a top priority. Another person may want a particular car because of the nostalgic memories attached to it. Everyone’s reasons are different.

Since not all cars or owners are alike, there are different ways to finance a new car and one way may be with a personal loan. Using a personal loan to buy a car is a good option for those who may not qualify for a typical car loan and are looked for an unsecured loan, meaning you do not have to put up collateral. It is estimated that about 4 percent of personal loans are used for vehicle purchases.

Another reason to take into consideration using a personal loan to buy a car is because some lenders will not finance a car that is more than seven years old. This can be an issue if you’re looking into a used car, or one that you admired when you were younger.

If you’re looking for fix-me-up kind of car a personal loan might also work as these cars tend to be much lower in cost than a typical used car and may not need to be financed.

Lastly, if you own a car and need car repair then a personal loan could be what you need to fix costly issues like replacing a transmission or a new engine. Fixing these repairs may also help you get more for our car whenever you decide to sell it or trade it in for a newer model.

The Takeaway

Regardless of what kind of car you’re looking for, a personal loan could help you drive away happy. AmONE can help you get connected with the right lender if you’re interested in applying for a personal loan for a car. Our Money Coaches can also answer all your questions about personal loans and what you may use them for. Contact AmONE today!

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Advertiser Disclosure*. The financial products and services on this site are from advertisers from which AmONE receives compensation. Compensation may be based upon whether you click on certain links on this site or buy products or services from those advertisers. We do not receive compensation from consumers. The placement of advertisements on this site are based in part upon the compensation AmONE has or expects to receive from those advertisers. Placement of advertisements does not reflect our recommendation of any advertisers' products or services. Please consult a financial services professional before making any financial decisions. Our advertisers do not include all the financial products and service providers available in the marketplace.

Loan availability, rates, APRs (Annual Percentage Rate), and other terms vary by advertiser and borrower attributes, including borrower location. Lenders have a range of available APRs; only borrowers with excellent credit will qualify for the lower rates. As of 01/11/2024, our advertisers were offering loans to some consumers for as little as a 6.40% APR on a three-year $100,000 loan.

We do not provide financial products or services. Rather, AmONE provides administrative and marketplace services by attempting to connect consumers with service providers offering products and services such as debt settlement and personal loans. We do not take applications or make credit decisions. We may not be able to match you with any of our advertisers. Credit and other decisions and terms are determined by our advertisers based upon the consumer's submission of an application to the advertiser, which may obtain other information about the consumer from third parties. Approval for financial products and services by an advertiser is not guaranteed.

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