Interest rates can vary based on factors such as the borrower's credit score, loan term, and prevailing market rates. Rates may be fixed or variable. It's essential to shop around and compare offers from different lenders to find the most favorable rate.

When you take out a car loan, the lender provides you with funds to purchase a vehicle. You then repay the loan amount in installments over a set period, typically ranging from 24 to 84 months. Interest is charged on the outstanding balance, and the loan is usually secured by the vehicle itself.

A secured car loan requires collateral, usually the vehicle itself, which the lender can repossess if the borrower defaults on the loan. An unsecured car loan doesn't require collateral but typically has higher interest rates because it poses a greater risk to the lender.