Car loans are secured or unsecured loans provided to retail customers for the purpose of purchase a new or used car. Car loans can be secured or unsecured (backed or non-backed by a collateral). Used cars private purchases are financed as a rule with unsecured loans, while the purchase of new cars - via secured loans with the car used as the loan collateral. In terms of repayment, car loans are normally installment loans (i.e. repaid in equal installments until the loan is paid off at the end of its term).
Updated on 6 July 2020