A car loan is a type of personal loan that allows you to finance the purchase of a vehicle. Borrowers can receive the loan amount and repay it over time through monthly installments, typically with interest. The car serves as collateral, meaning the lender can repossess it if you fail to make payments.
Car loans provide a convenient way to purchase a vehicle by spreading out the cost over time. It’s important to consider the loan terms, interest rates, and your financial situation to ensure that you can manage the monthly payments and long-term commitment. Make sure to compare offers from different lenders before making a final decision.