What is a car loan?

Car Loan

A car loan is borrowing for the purpose of buying a car and will usually be secured by the vehicle. You can use a car loan to purchase a car and pay for it using monthly instalments over a period of up to 10 years. The instalments will include interest on the loan as well as repayment of the car purchased.

A car loan can be thought of as a secured personal loan with the car used as security. Car loans are available for new or used cars though generally banks/financiers will only use cars that are less than 5 years old as security. If you are borrowing to buy an older car you may need to consider an unsecured personal loan.

Pros: Secured car loan may have cheaper interest rate, discipline of repayment schedule
Cons: longer application process

More information: https://www.canstar.com.au/car-loans/what-is-a-car-loan/