As long as a borrower is careful not to fall behind in a secured car loan, this type of financing can represent additional dollars in a buyer`s portfolio at the end of the loan term. This is the reason why many borrowers leave in times of shortage of lenders and hard-to-obtain loans with secured loans for necessary purchases that exceed their savings. An insured loan is a loan that is taken out with guarantees offered in exchange for the loan. In many cases, security is the real item on which credit is contracted. For example, the collateral for a home loan is the house itself. If the borrower does not meet the conditions of the loan, the house is placed in enforcement and the lender takes possession of the house. The same is true in many cases for car credit. .