Most car loans are secured, which means your car is generally used as security. So if you don’t pay the loan back on time, the lender has the authority to repossess your car and sell it to get back their money.
If you don’t want to put up your car as security, unsecured car loans are also available. However, the interest rate will be higher and your borrowing power will be limited. Unsecured loans are usually reserved for used cars with much smaller loan values.