When it comes to financing opportunities, personal loans and vehicle financing remain two of the most traditional financing options available today. Obtaining either of these forms of financing can be relatively straightforward if you meet the credit evaluation requirements. Most banks today can accept applications online, and approval for car purchases is often provided directly at car dealerships. The main difference between these two types of loans is that with a personal loan, the borrower can use the money for many different reasons, whereas with auto loans, consumers can only use the funds to purchase a vehicle. If you want to buy a new or used car, you should likely opt for an auto loan. However, if you need financing for a different reason, such as home renovations or wedding expenses, a personal loan may be the better choice. There are advantages and disadvantages to both options, so you’ll want to consider all aspects of each before deciding to sign.