At Car Loans of America we provide car loans for people that are looking to purchase a pre-owned or a new vehicle. A car loan is a short-term cash advance intended to help a borrower to purchase a vehicle such as a car, truck, van, or motorcycle. In return, the lender expects to receive monthly installments until the principal and interest are fully paid back. If the auto loan payment is paid back on time, it can help build credit. Like any legally binding contract, certain limitations exist.