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It is a loan offered at certain percentage of your car value. After you select your car and apply for car loan, the lender based upon your debt to income ratio, income, state of residence, monthly payments, credit history, value of your car, state of residence etc, offers you a rate of interest and loan terms, where u promise to pay back the money as per the terms agreed between you and the lender. He may ask you for a down payment or a cosigner as a security.
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