Whats the difference between a personal and auto loan?

Sammy asked:


I am doing a project for school. We have to find a brand new car, and figure out what the rate will be for a 3,4,5 year loan, and the percentage down payment required. I understand all that…but then it asks…

“Also, find out the rates for a personal loan. (Hint: this is always higher than the auto loan”

what is a personal loan and how can I find the rate for one??? soo confused

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Tags: Brand New Car, Loan Payment, Loan Personal

This entry was posted on Friday, March 13th, 2009 at 2:22 am and is filed under Personal Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Whats the difference between a personal and auto loan?”

1. OC1999 Says:
   March 14th, 2009 at 5:48 am

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   An auto loan is secured by the automobile. That is if you fail to pay on the loan they can take the car. A personal loan is “unsecured” that is you did not put up any collateral for the loan, hence the higher rate because the higher risk. These can also known as “signature” loans.

2. Diallo P Says:
   March 15th, 2009 at 6:24 pm

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   Sammy, Try getting a free online auto loan quote. The questionaire will let you know if you can be approved. It’s free and you can get an answer in minutes.

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