Auto Loan / Car Loan
Financing for a vehicle purchase, often secured by the car.
Detailed Description
Auto Loan / Car Loan
What is an auto loan?
An auto loan is a type of financing that helps individuals purchase a vehicle, secured by the vehicle itself.
What are the different types of auto loans?
The main types include new car loans, used car loans, lease buyout loans, and refinancing loans.
How do interest rates affect auto loans?
Interest rates can vary based on the borrower's credit score and loan terms, influencing the overall cost of the loan.
What is the role of a down payment in an auto loan?
A down payment reduces the total loan amount, potentially lowering monthly payments and securing a better interest rate.
How does an auto loan impact credit scores?
An auto loan can initially lower a credit score due to a hard inquiry, but timely payments can improve it over time.