When purchasing a car, many individuals rely on car loans to finance their purchase. A car loan is a type of financing offered by financial institutions, enabling buyers to spread out the cost of the vehicle over time. With a car loan, the buyer borrows the necessary amount and repays it in monthly installments, typically over several years. Interest rates, loan terms, and down payments vary depending on the lender and the borrower's creditworthiness, making it essential for buyers to understand the details of the loan agreement before committing.