auto loan

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auto loan

A customer signs the paperwork for an auto loan at the bank.

Definition

Noun: A personal loan to purchase an automobile. It is a sum of money borrowed from a bank, credit union, or other lender specifically for the purpose of buying a car. The vehicle itself typically serves as collateral for the loan.

Usage

An "auto loan" is a financial product used to finance the purchase of a vehicle. The borrower agrees to repay the loan amount plus interest over a set period.

Examples
  • The dealership helped her secure an auto loan with a competitive interest rate.
  • His credit score was high enough to qualify for the best auto loan terms.
  • Before you visit the car lot, it's wise to get pre-approved for an auto loan from your bank.
Advanced Usage
  • "to finance a car with an auto loan": This phrase describes the specific action of using this type of loan for a purchase.
    • They decided to finance the new sedan with an auto loan from a local credit union.
Variants and Related Words
  • Car loan: A direct synonym for "auto loan."
  • Vehicle financing: A broader term that encompasses auto loans, leases, and other methods of funding a vehicle purchase.
  • Secured loan: The category of loan that an auto loan falls under, as it is backed by collateral (the car).
Synonyms
  • Car loan
  • Vehicle loan
Related Phrases
  • Loan term: The length of time (e.g., 36, 60 months) you have to repay the auto loan.
  • Down payment: An initial upfront payment made when taking out an auto loan, which reduces the total amount borrowed.
  • Monthly payment: The fixed amount paid each month to repay the auto loan.
auto loan

A customer signs the paperwork for an auto loan at the bank.

Noun
  1. a personal loan to purchase an automobile

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