A car loan is nothing but the funds that one borrows from a lender for the sole purpose of purchasing a car of his or her choice. Car finance refers to the various financial products which allow someone to acquire a car, including car loans and leases. The most common method of buying a car in the United States is borrowing the money and then paying it off in installments. A direct loan is one that the borrower arranges with a lender directly. Indirect financing is arranged by the car dealership where the car is purchased.
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