Can you explain how car finance works in detail?

Car finance is a way to purchase a car by borrowing money from a lender, such as a bank or a car dealership. The borrower agrees to pay back the loan amount, plus interest, over a set period of time. The lender may require a down payment and will hold the car's title until the loan is fully repaid. If the borrower fails to make payments, the lender can repossess the car. Different types of car finance include loans, leases, and hire purchase agreements.