Car loans are not unsecured personal loans. rather they are loans that are secured against a vehicle, usually the one which the loan is being borrowed to pay for.

Secured car loans can be slightly cheaper than unsecured personal loans, since they represent less of a risk for the lender. However, because a car is a depreciating asset (it is constantly losing value), it is more of a risk than a loan secured against a property. Consequently, a car loan will not usually be as cheap as a secured homeowner loan.

Car loan finance can usually be taken out to fund the purchase of new and used, UK supplied and imported cars.