car loan
Definition
Noun: A sum of money lent to an individual specifically for the purpose of buying a vehicle, typically an automobile. This is a type of personal loan where the vehicle itself often serves as collateral for the debt.
Usage
A "car loan" is a financial product offered by banks, credit unions, or other lenders. The borrower receives funds to buy a car and agrees to repay the amount, plus interest, over a set period. The term is used to specify the loan's purpose.
Examples
- Noun:
- I applied for a car loan at my local bank to finance the new sedan.
- The dealership offered a low-interest car loan to qualified buyers.
- Her monthly budget includes a payment for her car loan.
Advanced Usage
- "to secure a car loan": to successfully obtain financing for a vehicle purchase.
- With a good credit score, it was easy to secure a car loan.
- "to pay off a car loan": to complete the repayment of the borrowed amount.
- She made extra payments to pay off her car loan early.
Variants and Related Words
- Auto loan (n): A direct synonym for "car loan."
- Vehicle financing (n): A broader term that encompasses loans, leases, and other methods of funding a vehicle purchase.
- Secured loan (n): A loan backed by collateral (like a car), which is the category a typical car loan falls into.
Synonyms
- Auto loan: A loan for purchasing an automobile.
- Automobile financing: The process or means of providing funds for a car purchase.
Related Phrases
- Loan term: The length of time over which the car loan must be repaid.
- He chose a five-year loan term for his car loan.
- Down payment: An initial upfront payment made when taking out a car loan.
- A larger down payment can reduce the size of your car loan.
Noun
-
a personal loan to purchase an automobile
