What is a purchase loan for a car and how does it work?

A purchase loan for a car is a type of loan that you can get from a bank or a financial institution to buy a vehicle. The loan amount is used to pay for the car, and you then repay the loan amount plus interest in monthly installments over a set period of time, usually ranging from 3 to 7 years. If you fail to make the payments, the lender can repossess the car to recover the remaining loan amount.