NEWSLETTERS
An auto loan is a type of financing that allows individuals to purchase a vehicle by borrowing money from a lender and repaying it over time with interest. These loans are typically offered by banks, credit unions, online lenders, and car dealerships, with terms that can range from a few years to several years, depending on the borrower’s creditworthiness and financial situation. Auto loans can be secured, meaning the vehicle itself serves as collateral, or unsecured, though the latter is less common. Factors such as credit score, loan term, interest rate, and down payment all play a role in determining the overall cost of the loan. Understanding the terms and conditions of an auto loan is crucial for making informed financial decisions and ensuring that monthly payments fit within one’s budget.