Whether a car loan company is legal or not depends on whether it has the relevant financial license. For example, if the parent company has the relevant loan financial license and the car loan company is a subsidiary, then the car loan company is legal in this case.

However, it is illegal for a car loan company to operate independently and lend privately without a relevant financial license. It is recommended to apply for a loan from a regular car loan company. Informal car loan companies may have routine loans, high interest rates and violent collection.