- When you are approved for an auto loan and you proceed to get one,
does a lump some cash amount (the principal) get added to your
The bank would usually give the money to the dealer directly, possibly via a check you give to the dealer as payment. Ask your bank, they can tell you how they do it. It's exceedingly unlikely the money will ever go through your personal account though.
- If you take a loan from your bank, does a new account "tab" also pop
up on your dashboard like your credit card tabs?
Depends 100% on your bank, you'd have to ask them.
- I know how interest in paid for bonds. How is interest paid for a
loan? Let's say you take a $10,000 at 3$ APR for 12 months. Do you pay
$833.33 ($10,000/12) of principle + $25 ($10,000 * 0.03/12) every
It's paid off however your contract says it's paid off. Usually it'll be like a mortgage—the amortization formula gives you a monthly payment, principal * interest rate goes towards interest, the rest goes towards the principal. If you make an extra principal payment (assuming your loan contract allows for such a thing, rather than just pre-paying future payments), the interest in subsequent months is reduced and you pay off the principal faster.
- Do you have to post collateral?
The car is the collateral. They put a lien on the registration, and if you default they can repossess it. As jamesqf points out, that also means you can't sell the car until the bank signs off on it, which they are unlikely to do unless the loan is paid off (possibly as part of the sale).