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.

Noun

1. a personal loan to purchase an automobile