There are two types of personal car loans available secured or unsecured.
A deposit is not required on most cases, but that will assist in your approval chances should you have a borderline application. The loan is daily reducible, ie the interest is calculated on the unpaid balance daily, just like a home loan. Extra or additional payments will shorten the term and reduce interest charges.
A variation known as the balloon payment or residual option is also slowly growing in popularity. By setting a larger balloon payment for the end of the term, which can vary according to circumstances, you can reduce your monthly payments to better balance your budget. At the end of the term, you can either pay out the full amount in one hit or re-finance the balloon amount and continue paying off the car over a new loan period.
