Car Loan

[Booldawg]

How does a car loan work? I can see what the APR and monthly payments are on my banks website.

When you apply do they pay the money into your account or do you need to specify what car you are intending to buy (make, model, price, reg etc)?

Also, does the car dealership need to be approved by the bank? as I'm looking to buy from a second hand dealer rather than a main dealer

[silliemillie]

If you are just applying for a loan through your own bank I would think they just pay the amount into your account. They won't need to know the details.

They did for me but that was some years ago, don't think it's changed.

[Booldawg]

I think car loans and personal loans are handled differently, not sure how though!. Car loans seem to have a lower interest rate.

[hc4361]

Can we have a link to a deal you're looking at?

[EDDIE51]

Some car loans are secured on the car. So you do not actually own the car until the loan is paid off. As there is security the interest rate is lower.But if you do not pay the loan they will take the car.