A personal loan you obtain from a bank or finance company to buy a car or truck. The vehicle is the security for the loan. Car loans are amortized over several years, usually three to five. In recent years, longer terms have become more common as the number of buyers who owe more on their trade-ins than they are worth — known as having negative equity — has increased. Subprime borrowers (those with a poor credit score) pay higher rates for loans. Loans for used cars also usually carry higher interest rates than loans for new cars. Manufacturers sometimes offer 0% APR loans on new cars — meaning you pay no interest over the life of the loan — in order to move inventories. You can search our database for the best new and used car loan rates in your area.