Q: Are loans secured by all vehicles, whether new or used, considered to be covered loans?
A: I'll make two points in responding to that question. First, the rule does not apply to credit extended expressly for the purpose of purchasing a motor vehicle that is used as security for the credit. However, it does apply to non-purchase credit that is secured by a vehicle. Second, neither the MLA itself nor the regulation distinguishes between new and used motor vehicles. So, they cover both types.