Final answer:
Collateral for a car loan is the asset that secures the loan repayment, with the car itself often serving as the collateral.
Explanation:
Collateral is an asset that a borrower provides to secure a loan. If the borrower fails to repay the loan, the lender can take possession of the collateral as compensation. In the case of a car loan, the car itself serves as the collateral that the lender can seize and sell if necessary.
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