A car loan is a type of loan specifically used to finance the purchase of a vehicle, such as a car, truck, or SUV. It is a form of installment credit where the lender provides funds to the borrower, who then uses those funds to purchase the vehicle. Here are the key aspects of a car loan.Car loans are offered by banks, credit unions, and other financial institutions, as well as through dealership financing options. Borrowers should compare loan terms, interest rates, and fees from different lenders to find the most suitable car loan for their financial situation.