Excerpt from: Car Loans Canada -- Getting a Good Loan
|
 |
| August 29, 2007 | | Learn the difference and know which one is right for you! | | Even with a bad credit car loan, the car is considered the security for the loan. Secured loans are the most conventional method of financing large sums of money. Unsecured loans, on the other hand are of a recent origin. An unsecured loan would be a loan that could be taken out based on your individual credit worthiness. For example, if you get a personal loan in the amount of $10,000 with no assets tied to it, you can do what you want with that loan. If you would like to spend $5000 on a car, you could sell that car at any time and leave any negative equity on the outstanding loan. With a structured car loan, if you decide to sell the car and there is negative equity, that amount becomes due immediately and must be paid off. | | |
|
|
