Is a car loan a secured loan?

I've been trying to figure out if my car loan is a secured or unsecured loan. Are car loans secured?

Answer
Secured loans have collateral. In the case of your car loan, the collateral is your car. So yes, a car loan is a secured loan!
In fact, until you’ve paid off the loan in full, your lender is the lienholder and is listed on the car title, meaning they technically own the car. But once you’ve made your final loan payment, that will no longer be the case. You’ll own the car outright and be the sole name listed on the car title.
However, if you fail to make the required payments toward your loan, your lender can take the car back to make up for the money you owe.
If you’re worried about your car loan payments, you should look into refinancing. The Jerry app makes it quick and easy. Jerry uses your current loan information and credit score to find competitive rates from top lenders. On average, car owners pay $85 less every month by refinancing.
Lauren Smith
Answered on Nov 18, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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