Customers take out auto loans in order to finance the purchase of a vehicle.
Refinancing an existing vehicle-secured loan is another option for customers who want to get an auto loan. A car, truck, or SUV can cost a lot of money, and you may not have the funds on hand to pay for it all at once. Instead, you can get a car loan for a new or used automobile, drive it home, and then make monthly payments to pay it off over time. The length of the loan, the interest rate, and other factors all contribute to the total cost of the loan. The vehicle loan is protecting the car.. The lender has the option of repossessing the vehicle if the consumer fails to pay back the loan. Typically, if the vehicle is not sold at a sufficient price, the purchaser is responsible for the difference.