Category guide
Car loans
A car loan finances the purchase of a vehicle, repaid in fixed monthly payments and secured by the car. Where you finance — dealer, bank or specialist lender — shapes the rate you're offered.
What a car loan covers
A car loan is money borrowed to buy a vehicle — new or used — repaid over a set term, usually three to eight years. The loan is secured by the car, so the lender can repossess it if you default. This security is why car loan rates are generally lower than an unsecured personal loan. The same lenders often finance motorcycles, RVs and other vehicles too.
Where to finance, and subprime options
You can finance through the dealership (often the most convenient, sometimes with promotional rates), a bank or credit union, or a specialist auto lender. Subprime and credit-rebuilding lenders serve borrowers with damaged credit at higher rates. Refinancing later can lower your rate if your credit improves.
How to compare and borrow smart
Compare the APR and the total cost over the full term — a longer term lowers the payment but raises the total interest. Getting pre-approved by a bank before visiting a dealer gives you a benchmark to negotiate against. Use the directory to find car lenders and dealers near you and compare by rating.