Respuesta :

Officialalehpeter

Answer:

An auto loan is a loan that person takes out in order to purchase a motor vehicle. Auto loans are typically structured as installment loans and are secured by the value of vehicle being purchased.A car loan is pretty much what you think it is: It is a personal loan, the proceeds of which are used to purchase an automobile. In return, the borrower agrees to pay back the lender the amount of the loan plus interest, usually in monthly payments, until the amount owed is fully paid off.

Buying a car can help you build a positive credit history if you pay the debt on time and as agreed. Failing to pay on time will hurt your credit. When you apply for a car loan, your application will probably be sent to multiple lenders. A new inquiry will be added each time a lender reviews your credit report

Explanation:

Parrain

Auto loans generally have low rejection rates because:

  • Cars can be repossessed
  • People keep up with car payments

Loans are harder to get when there is risk attached but auto loan providers believe that the risk of giving out auto loans is less because:

  • They can repossess the car - if the borrower is unable to keep up with the car payment, the loan providers can simply repossess the car, sell it, and make back their loan.

  • People tend to keep up with auto loans - a general trend of recent is that people pay off their auto loan interest before their mortgage because they don't want to lose their means of getting to work. This gives auto loan providers more assurances that they will get their money back.

In conclusion, because auto loan providers are more certain that they will be paid back one way or the other, they make getting auto loans easier than most other loans.

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