Vehicle Loan

If you’re in the market for a new car, you’re probably considering taking out a loan to finance your purchase. Here’s what you need to know about vehicle loans before you head to the dealership. A vehicle loan is a type of installment loan that allows you to finance the purchase of a car. The loan is secured by the car itself, which means that if you default on your payments, the lender can repossess the vehicle.Vehicle loans typically have shorter terms than other types of loans, such as mortgages or personal loans. The average car loan term is around four years. This means that you’ll have a lower monthly payment than with a longer-term loan, but you’ll also pay more interest over the life of the loan.Before you shop for a car, it’s important to get pre-approved for a loan.