In most circumstances, a secured loan will make more sense than an unsecured loan.
In some cases, an unsecured loan may be a better option, especially if the car you’re looking to purchase doesn’t meet a lender’s eligibility criteria, such as being too old or in poor condition. An unsecured loan might also be preferred if the car is a gift for someone and you don’t want the recipient to be at risk of losing the car should you fail to meet the repayments.