Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What is an auto loan?
An auto loan is a loan used to purchase a vehicle. You borrow money from a lender and repay it with interest over a set term, typically 36-72 months. The vehicle serves as collateral for the loan.
How do I get the best rate?
Improve your credit score, save for a larger down payment, and compare offers from multiple lenders. Consider getting pre-approved before visiting a dealership. A higher credit score can significantly lower your rate.
What term should I choose?
Shorter terms (36-48 months) have higher monthly payments but lower total interest. Longer terms (60-72 months) have lower payments but cost more over time. Choose a term that fits your budget and minimizes total cost.