Car loans are lending tools that enable people to finance the purchase of vehicles. In return for financing, lenders charge borrowers interest over the course of loan repayment. Car loans are typically short-term lending vehicles that tend to range from three to six years in the length of repayment. There are several main sources for obtaining car loans. Traditional banking institutions and credit unions are among the most common lending agents for car purchases. Finance companies and even dealerships, in some cases, may provide their own financing.