Americans considering buying a new car may find that auto loans are a common solution due to high costs. However, personal loans can also be used to finance a 2025 car purchase. It’s crucial to shop around for the best rates and terms and consider putting cash down to reduce the amount needed to borrow.

To secure a competitive rate, explore options with local credit unions, banks, and online lenders like SoFi or LightStream. Keeping credit inquiries within a 14-day window can prevent multiple hits on your credit report. With the average cost of a new car at $48,799, finding a lower rate is key to saving money.

Personal loans can be beneficial for car purchases, but it’s important to understand the terms. Opt for fixed-rate loans to avoid unexpected payment increases, and avoid loans with high fees or penalties. By addressing credit issues and reducing the loan amount, buyers can keep loan payments manageable.

When using a personal loan to buy a car, it’s crucial to research and compare the rates and terms offered by different lenders. By addressing credit issues, reducing the loan amount, and selecting the right loan type, buyers can secure the best financing option for a 2025 car purchase.

Read more at Yahoo Finance: The Best Way To Take Out a Personal Loan on a 2025 Car