A secured personal loan lowers the interest rate on a personal loan by using the asset you are purchasing or another asset you own as “security” or “collateral” for the loan. Secured personal loans are generally the best way to purchase a motor vehicle as the vehicle is used as security for the term of the loan. This means that if for some reason you cannot make the repayments on the vehicle it can be taken back and used to pay out the balance of the loan hence making you a better risk for a lender and getting you a better interest rate.