As Raina makes sure she has enough money for her auto loan payment, she reminds herself that her car is considered collateral. What does this mean?

Collateral is property pledged to secure a loan. If Raina does not make her auto loan payments, the lender may repossess the car to recover its losses. So the car being collateral means it could be taken back if she cannot pay the loan.

AI-written and checked against the verified answer.