Banks finance car purchases through auto loans. The bank provides the buyer with funds to pay for the vehicle, and the borrower repays in fixed monthly installments over a period that typically ranges from 3 to 7 years. Requirements usually include a down payment, proof of income, and comprehensive insurance, with the car itself serving as collateral until the loan is fully settled.
Private companies, on the other hand, often offer direct installment plans or in-house financing without going through a bank. These plans may have shorter repayment periods, higher overall costs, and more flexible requirements—sometimes not requiring strict income verification but usually demanding larger upfront payments
