As suggested by the name, car loans are those loans lent to individuals specifically for the purpose of purchasing an automobile or car.

Car loans do sometimes also get referred to as car financing and their interest rates are generally set at levels comparable with most standard home loans.

This obviously waxes and wanes depending on the economy. Car loans are the second most common form of loan taken out by individuals, only being eclipsed by the home loan.

Some car dealers have their own car financing packages and these may include trade-ins or up-grades after a certain number of years.

Generally, however, these packages are most expensive than those provided by your standard loans agencies such as the banks.

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