Auto loans

Auto loans are borrowed funds used to purchase a vehicle, allowing buyers to pay for the car over time rather than all at once. When someone takes out an auto loan, they agree to repay the lender, typically a bank or credit union, over a set period with interest. Monthly payments are based on the loan amount, interest rate, and loan term. The car acts as collateral, meaning the lender can repossess it if payments are not made. Auto loans can facilitate vehicle ownership, making it more accessible for many individuals and families.