2 answers:
Answer:
A loan that you usually have to get from a bank to use specifically for paying for a car,which you later have to pay back
Step-by-step explanation:
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Answer:</h2>
A car loan is a type of secured loan, where we can say that the car we buy is collateral for the loan.
In case of failure of payment of loan, the lender can repossess the car and sell it to pay off the loan.
In other words, we can say the lender or banks purchase the car for us and gives us few years time to pay back that loan.
The loan is granted with interest rates, that one has to pay above the principle amount during the tenure of the loan.
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