Car loans are useful if an individual doesn’t want to pay their car off with the full amount. It allows you to borrow a set amount of money to cover the cost of purchasing a car, which you’ll pay back plus interest over a set loan term.

Having a car loan is a great idea when an individual wants to drive a new car and they are unable to save up enough cash for in a reasonable amount of time. The interest rate is low, so the extra costs won’t add much to the overall cost of the vehicle. The regular payments won’t add stress to your current or upcoming budget

A car loan can help you buy a more expensive vehicle than you might not be able to afford upfront with cash or even a brand-new car that is far less likely to require costly services/repairs.