The asset used as security is often the item that the borrower intends to purchase with the loan funds. This will typically be the case with a secured car loan, where the lender takes a charge over the car being purchased with the loan funds. However, the asset offered a security could be something else, such as another car, or real estate, an amount in a bank deposit account, a share investment portfolio, or, less often, a boat, jewellery or a work of art. If you are offering a car as security, it will usually need to be less than five years old at the beginning of the loan period, and some lenders may have even stricter vehicle age limitations. You will also need to pay for comprehensive insurance on the car.