Buy a Better Car

• Most lenders will lend you more money as a secured car loan than as an unsecured personal loan. That means that you'll be able to get a better car when you take out a secured car loan.
  
  

Get a Lower Interest Rate

• In general, secured car loans carry lower interest rates than personal loans because your collateral lowers the risk that you'll default on the loan. Statistics show that secured loans are more likely to be repaid than unsecured loans.
  
  

Qualify with Lower Credit Rating

• You can often qualify for a secured car loan with a lower credit rating than is required for a personal loan. Because the lender's risk is lower with a secured loan, most lenders have lower requirements when making secured car loans.
  
  

Build Your Credit Rating

• A secured car loan can help build or repair your credit rating because the loan and your payment history will become part of your credit history. That means that you'll qualify for lower interest rates on future loans, and be able to access credit when you need it.
  
  

Borrow from Any Lender

• You'll get the most benefit from secured car loans by shopping around for the best loan terms before you shop for a car. In most cases, you'll find better rates on secured car loans from banks and finance companies than you will if you finance your new car through your auto dealer.