Many people do not truly understand all of the mechanics of Car Loans.  These loans are actually personal loans which are specifically designed for people to purchase vehicles with.  The fact that they are personal loans are of great importance, because this implies that the loans are indeed a consumer loan which allows the borrower to establish consumer credit.  Put simply, these loans are very often considered “good debt.”  Making monthly payments on time or early and paying off the vehicle according to the terms set forth can really improve the consumer’s credit rating.  Anyone who has ever needed to get a loan knows just how important that rating can be.