An online car loan is a loan, which is available online or on the internet. The borrower has to fill up a simple online application form online which is free of cost. The information on the form is kept confidential, and is not shared with other people. Once the application is processed a representative will inform about the documents needed to complete the loan application process. One has to visit a dealer, select a car of one's choice and the deal is complete.

One has to buy a used car as one is short of finance. Hence, one applying for a loan must opt for lowest used car loan rate of interest. So the monthly payments can be easily disbursed. The car must be thoroughly inspected before buying to make sure it is not having many technical problems, which will cost a lot of money. A low interest car loan can be in form of secured or unsecured loan. A secured loan has a low rate of interest, but uses the home of the borrower as security. Whereas, in an unsecured loan doesn't have any security against the loan, but a higher rate of interest.

Low interest car loans can be availed if one has a good credit history. The lender will be assured that the borrower will not evade the loan payment. Also if one wants an auto loan one should avoid buying from car dealers as their rate of interest is quite high. Such financing is offered by many financial organizations nowadays. One needs to make a down payment, when using used car financing. This has a verification of the loan. With a higher down payment one will get a lower rate of interest, and the monthly payment to be made will also be reduced. New cars are very expensive; hence people resort to buying used cars.