Why Vehicle Loans?
A Vehicle loan is taken by borrowers to purchase a new or used private or commercial vehicle. A lender loans the borrower the cash it takes to purchase a vehicle. In return, the borrower agrees to pay back the lender the amount of the loan plus interest, usually as monthly payments, until the amount owed is fully paid off.
Auto loans are secured loans where the vehicle itself is used as a collateral. Lender companies fix interest rates depending on the type of vehicle and loan amount. Interest rates are usually fixed for auto loans.