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A promissory note is used for mortgages, student loans, car loans, business loans, and personal loans between family and friends. If you are lending a large amount of money to someone (or to a business), then you may want to create a promissory note from a promissory note template.
Promissory notes and titles can be sold. The person who owns the promissory note may sell it. Lenders typically sell promissory notes when they no longer want to be responsible for the loan or they need a lump sum of cash. The buyer of the note assumes the responsibility of collecting the money.
A promissory note is a promise to pay. So a bill of sale for an automobile with a promissory note is what you might expect from the (very long) name: A certification someone has bought, and promises to pay for, your car. In this case, likely in monthly installments.
NerdWallet recommends spending no more than 10% of your take-home pay on your monthly auto loan payment. So if your after-tax pay each month is $3,000, you could afford a $300 car payment.
As the payer of such a note, its important to know that, unless a note expressly stipulates that it is not negotiable, promissory notes are negotiable instruments that can be transferred or assigned by the original payee to a third party.
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While a promissory note is not typically a negotiable instrument as defined in the UCC, it is intended to be and is codified as an instrument that can be easily transferred by the lender to a third party.
So the short answer is: No, car loans and promissory notes are not the same. Car loans are a type of agreement where one party borrows money from another to purchase a car. The borrower will pay the lender back over a given timeframe and with an **agreed-upon amount of interest.
The promissory note should only be used if the buyer intends to make a down payment at the time of purchase and pay the remainder over time.
How to Get a Car Loan Check your credit report. Apply for auto loans from multiple lenders. Get preapproved for an auto loan. Use your loan offer to set your budget. Find your car. Review the dealers loan offer. Choose and finalize your loan. Make payments on time.
Financial institutions such as banks and lenders often use promissory notes when issuing real estate mortgage loans or student loans. Companies or individuals also use promissory notes when issuing or taking on personal loans or corporate loans.

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