i want a used car, should i get a personal loan or car loan?

Question

now it sound like a dumb question, hear me out.
I'm 18, looking to buy a 2001 celica GT for around 7000.
but these are my options:
Do a car loan and full coverage insurance.
or to save money a personal loan (even if its through my parents) use it to pay the car in cash, and therefore be able to get liability insurance on it.
what should i do?

any advice? i just totaled my car couple weeks ago,(so my insurance is higher than normal) and i cant go higher than $7000, but i want something nice and that will last.

Stupid Flanders · Accepted Answer

Nothing beats a low or no interest loan from the bank of Mom and Dad. 
However, you probably still want to get full coverage on a $7K vehicle.

Vonda · Answer

1

Darla · Answer

2

whocares · Answer

Personal loans are harder to get and have a higher interest rate.

Liability wont cover you if you total a $7000 car. Then what would you do ?

You would still owe the payments but not have a car.

oklatom · Answer

And what if you total this one too?  You still have the personal loan to pay, and no car.  Either way you finance it, you should have insurance to cover any potential loss.  If you can't afford insurance, you really can't afford to own a car.

Anonymous · Answer

you are right, the question is stupid because the answer is obvious. get the car loan not the parent loan

Hank Scorpio · Answer

Celica isn't worth 7k.  It might be worth 4-5k depending on miles.

You didn't ask this question but that's what I'm telling you.  You get ripped on the price of the car you're going to get ripped on the condition because you're dealing with a sleazeball seller.

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i want a used car, should i get a personal loan or car loan?

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