Car loans are a type of secured loan that is used to finance the purchase of a vehicle. When an individual takes out a car loan, they are borrowing money from a lender to buy a car, and the car itself serves as collateral for the loan.

Car loans typically have a fixed interest rate and a set repayment term, which can range from a few years to several years. The interest rate and repayment term will depend on a variety of factors, including the borrower’s credit history, income, and the cost of the vehicle.

Car loans are available from a variety of lenders, including banks, credit unions, and car dealerships. It is important for borrowers to carefully consider their options and shop around for the best car loan terms and interest rates before making a decision.