Unlike common credit cards which allow consumers to pay only a small portion of principal each month but at consumer's own pace, Car Loans have to be repaid accurately according to their repayment schedule.

Interest is charged on the balance outstanding and generally is at a lower rate than that of a common credit card.

Sometimes it is possible for individuals and companies to obtain a Car Loan on their own or from a dealer of their choice. But the terms offered by banks or dealers are often unreasonable and a substantial down payment may be required