About Auto LOAN—CAR Segment
An Auto Loan is taken by borrowers to purchase a new or used private or commercial vehicle. Auto loans are secured loans where the vehicle itself is used as a collateral. … Lenders fix interest rates depending on the type of vehicle and loan amount. Interest rates are usually fixed for auto loans.
When you don’t have the cash on hand to pay for a new car, a car loan can help you buy it — whether the vehicle is new or used. When you get an auto loan, you borrow money from a lender to buy a car. You agree to pay back the funds over a set period of time, plus any fees and interest you accrue
Types of Car Loan
A lease is a contractual agreement between a lessor (the person who owns the property) and a lessee (the person who gets to use it during the term of the lease). Usually, car leases allow the lessee to drive the car for a certain number of miles (under 12,000 per year is standard) for a certain number of years (say, three years). The lessee pays a fixed monthly payment for the privilege of driving the vehicle, and when the lease ends, the lessee returns the vehicle to the lessor. Lease rates are not just based on what the car is worth today because the lessee does not buy the whole car. Instead, the lessee pays only for the value of the vehicle for the term of the lease. Lenders calculate lease payments based on the vehicle’s residual value, or what they estimate the car will be worth when the lease is over