Definition

Noun: A sum of money borrowed from a lender specifically for the purpose of buying a car. The borrower agrees to repay the loan, typically with interest, over a set period of time. The purchased automobile often serves as collateral for the loan.

Usage

An "automobile loan" is a specific type of secured personal loan. It is used in formal and financial contexts when discussing the financing of a vehicle purchase. - You apply for an automobile loan at a bank or credit union. - The terms of an automobile loan include the interest rate and the repayment period. - The lender holds the title to the car until the automobile loan is fully repaid.

Examples

• "She secured an with a low interest rate to buy her first car."
• "Comparing offers from different banks is crucial before finalizing an ."
• "His monthly budget includes a payment for his ."

Advanced Usage

• "to finance a car with an automobile 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 automobile loan from their local credit union.

Variants and Related Words

• Car loan: A common synonym for "automobile loan," identical in meaning and usage.
• Auto loan: A shortened, informal variant of "automobile loan."
• Vehicle financing: A broader term that can encompass automobile loans, leases, and other payment plans.

Synonyms

• Car loan
• Auto loan

Related Terms (Not Phrasal Verbs)

• Collateral: The asset (the car) that secures the loan.
• Down payment: An initial upfront payment made when taking out the loan.
• Lien: The lender's legal right to the car until the loan is paid off.

Noun

1. a personal loan to purchase an automobile