Is my car loan for a Nissan Kicks secured or unsecured?

I've been trying to get my finances in order, and I've been reading about secured and unsecured loans. I recently financed a Nissan Kicks. Is this loan secured or unsecured?

Answer
Good for you for getting your finances in order! The biggest difference between secured and unsecured loans is based on collateral.
A car loan for a Nissan Kicks is considered a secured loan, meaning that the vehicle functions as the collateral. If you fail to make payments, a lender can take the car, thus making it risk mitigation for the lender. Without the Kicks as collateral, the lender would have few options if you failed to make your payments.
The main benefit of a secured loan is that your monthly payments are much lower than a loan without collateral, which is also known as an unsecured loan. While unsecured loans don’t have collateral, the interest rate is much higher.
Despite the lower interest rate, car loans also require you to maintain full coverage car insurance as a way for the lender to protect their collateral. This can get expensive if you don’t know where to look.
Enter the Jerry app. By downloading this app, you can compare quotes on full coverage from up to 50 providers. Once you make your choice, Jerry will take care of the rest. The best part? Most Jerry users save $879 per year on car insurance.
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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