There are two basic types of car loan: secured car loans and unsecured car loans. A secured loan provides the lender with an item of security; in the event that you cannot repay the loan, the lender can take possession of this item, which, in the case of a secured car loan is usually the car itself. Conversely, unsecured loans do not require an item of security. These loan tends to have higher interest rates and the loan amount offered is usually smaller.
Many lenders also offer specialised car loans. A specialised loan offers advantages from which one particular group of target customers would benefit. Specialised loans are either secured or unsecured. 'Bad credit loans' are the most popular specialised car loan as they allow borrowers with poor credit history to obtain a loan. In addition, 'Refinancing Car Loans' are available if you wish to switch lenders partway through an existing loan agreement.
Alternative car finance options are also available. You should research each one thoroughly in order to find the best one for your financial needs. For more details see Car Finance Options.
For more details about the different types of car loan, see:
