auto-loan

Vocabulary Word

Definition

An 'auto loan' is a type of personal loan used specifically to purchase a vehicle. In essence, a bank or finance company would lend you the money needed to buy a car, and you would repay the loan with 'interest' over a set period.

Examples in Different Contexts

In financial planning, an 'auto loan' is considered when budgeting for a new vehicle purchase. A financial advisor might say, 'Let's factor in the auto loan payments into your monthly budget to ensure it aligns with your financial goals.'

Practice Scenarios

Marketing

Scenario:

Our next promotion should focus on the flexible and affordable financing options we offer. Helping people realize their car owning dreams can be a powerful message.

Response:

Great idea! Could we also highlight customer success stories who've realized their dream through our auto loans?

Accounting

Scenario:

We need to carefully monitor how the car loan repayments are affecting our cash flow. It's a significant financial obligation for us.

Response:

That's a good point. Can we consider refinancing the auto loan if the impact on cash flow becomes too burdensome?