A vehicle loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a vehicle. Many consumers apply for loans at their local bank. When applying for a vehicle loan a borrower will usually begin by specifying how much money he or she wants to borrow.

An auto loan is a loan taken out in order to purchase a motor vehicle. They are typically structured as installment loans and are secured by the value of car, truck, SUV, or motorcycle being purchased. Your repayment capacity is based on your monthly disposable/surplus income, which, in turn, is based on factors such as total monthly income/surplus less monthly expenses, and other factors like spouse's income, assets, liabilities, stability of income, etc. A vehicle loan is simply a loan offered to a borrower for the purpose of buying a residential property, usually to be used as the borrower’s home or as an investment property.