There are two different ways to finance a car:

1. A personal, unsecured loan.
2. A car loan, where the car is used as security against the loan.

• You may get a lower interest rate on a car loan – but you may have to take out insurance for the car, and you could lose the car if you do not make the monthly repayments.

• If you do not make the monthly repayments on a personal loan, the bank could take you to court to force you to sell your assets to pay back the loan