Auto Loan
Also called: car loan, vehicle finance, car finance
An auto loan is an installment loan secured by the car itself, so default means repossession rather than a court fight. The structural problem is that cars depreciate faster than loans amortise, especially on long 72- or 84-month terms: you can owe more than the car is worth for years, a position called negative equity that traps you when you want to sell. Longer terms lower the payment and raise both total interest and the time spent underwater.