Personal loans are designed to fund a specific type of purchase or expenses. So, to answer the question, yes, you can use a personal loan to buy the car you want. One of the biggest benefits of a personal loan is its flexibility. You can use the money to pay for a home remodel, out of town holiday, and of course, car purchase.
However, we highly recommend that you use an auto loan instead. The process is more straightforward, especially when qualifying for an auto loan. The interest rates may also be lower, particularly if you have a good credit rating. Another reason why you may want to opt for a car loan is that personal loans have various fees, including origination fees and prepayment penalties.
Since a car loan automatically uses the vehicle as security, your loan will likely have a lower interest.