Car finance and car loans essentially refer to the same thing, which is borrowing money to purchase a vehicle. However, there can be nuances. A car loan is a type of personal loan where you borrow a lump sum of money to buy a car or other vehicle such as a motorbike or caravan. Car finance can include car loans, but also other types of financing like hire-purchase, leasing, or dealership financing, where the finance company owns the vehicle until the final payment is made.