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A car loan is a personal loan intended specifically for the purchase of a car.  Car loans can be used towards new or used cars and are often issued as hire purchase agreements – that is, the customer leases the car until he or she has paid off the car loan in full, at which point ownership of the car will be transferred from lender to borrower.  Such “buy now, pay later” repayment plans give borrowers the added benefit of being able to use the car right away.

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