Different financing products have different benefits and drawbacks. The same goes for car loans and personal loans. In the end, a car loan may be an easier option because of the collateral involved (the car is used to secure your loan) and the fact that you can make a large down payment or trade-in your used car, any of which can decrease the risk for the lender.  On the other hand, a personal loan might be less complicated to get approved for, since there’s generally less paperwork involved. More often than not, the approval process can be completed entirely online within a few minutes. Like a regular car loan, a lump sum of liquid money will be deposited into your bank account after approval.