Daily Definition – Auto Loan

Daily Definition – Auto Loan

Posted on 07. Jul, 2009 by emilythomas in Daily Finance Definitions

An auto loan (also known as a personal loan) is another way by which you can purchase a car. You use the loan to pay the seller in full for the car. Then, you make monthly payments to repay the loan. The monthly payments will depend on a variety of factors such as the interest rate, the price paid for the car (loan principal), the loan provider, and auto loan term.

The primary advantage of using a personal loan to finance a car purchase is that you then own the car straight away. There is no leasing required – the car is yours. If you decide to sell the car after 6 months and buy a different car with the money, then you are free to do that. However, I don’t necessarily recommend doing this.

You are also free to buy the car from wherever you wish.  You may be able to negotiate discounts as a cash buyer. Also, some dealers offer special rates on auto loans.

The main disadvantage is that an auto loan is usually harder to obtain than other forms of finance. However, you could get approved for an auto loan, even if you have poor credit, by applying here.

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10 Responses to “Daily Definition – Auto Loan”

  1. » Daily Definition – Auto Loan | Your Money Marketplace » Car Loan Rates Online

    07. Jul, 2009

    [...] news by emilythomas Auto Loan Options for People with Bad Credit | Bevanwistar [...]

  2. Daily Definition – Auto Loan | Your Money Marketplace

    07. Jul, 2009

    [...] An auto loan (also known as a personal loan) is another way by which you can purchase a car. You use the loan to pay the seller in full for the car. Then, you. [Read the full article here] [...]

  3. Mary

    07. Jul, 2009

    Thanks for the advice on auto loans – I applied yesterday at Your Money Marketplace and got approved for an auto loan today. I’m buying a 2005 VW Golf, and even though it’s an older model, I couldn’t afford to pay for it upfront. And that’s why I really was happy to get an easy auto loan. Thanks again!

  4. Daily Definition – Hire Purchase | Your Money Marketplace

    09. Jul, 2009

    [...] price) and then monthly payments  plus  interest over a set period, much like you would for a personal loan (or auto loan). But you do not own the car outright with a hire purchase like you would if you used [...]

  5. Ann

    19. Jul, 2009

    Useful info, nice blog, thanks.

  6. frehaxfetralp

    10. Sep, 2009

    ok, my mind is blown from all of the “post bankruptcy loan” sources online! theres just too many and im not going to run my credit that many times
    to try and find the best rate, lowering it further, so i need your help… ok, i was discharged from bankruptcy a year ago. since then i have two
    credit cards for about a year that are NOT maxed and are paid on more than required. however, my credit score is 586. im looking for the lowest
    possible interest rate, for my credit history( i know im not going to get prime rates). im just looking for a REPUTABLE, known place that will almost
    guarantee me an auto loan. i want to be one and done. lol does anyone know of a good post bankruptcy buying a car with bad credit source? explained here.

  7. bill

    23. Sep, 2009

    Useful info, nice blog, thanks.

  8. steven

    03. Nov, 2009

    Nice post and blog! Greets.

  9. chris

    13. Nov, 2009

    Useful info, nice blog, thanks.

  10. jenna

    17. Nov, 2009

    Good point! Thanks!

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